Do Travel Nurses Cost More Than Staff? Here’s a Breakdown of The Data
A new 2026 Cost of Labor Study conducted by KPMG and commissioned by the National Association of Travel Healthcare Organizations (NATHO) suggests that travel nurses may, in some cases, cost healthcare facilities less than permanent nursing staff when total labor expenses are considered.
According to the study, the average fully loaded hourly cost of a travel nurse was $89 per hour, compared to $94 per hour for permanent nurses once wages, benefits, and other indirect costs were included.
Understanding “Fully Loaded” Labor Costs
While travel nurses often earn higher hourly wages, the study emphasizes that hourly pay alone does not reflect the full cost of employment. For permanent nurses, additional expenses significantly increase overall labor costs.
The study estimated the average permanent nurse base wage at $45 per hour, with added costs including:
- Payroll taxes: $13/hour
- Benefits and insurance: $9/hour
- Risk management: $3/hour
- Recruitment expenses: $7/hour
- Training: $8/hour
- Nonproductive time such as education and administrative work: $9/hour
When combined, these factors raised the average cost of permanent nurses to $94 per hour.
By comparison, travel nurses typically do not generate long-term recruitment, onboarding, or nonproductive labor costs for facilities, contributing to a lower overall hourly expense in the study’s analysis.
The findings were consistent across other clinical roles. The study reported that:
- Travel allied health professionals averaged $59.10/hour, compared to $64.80/hour for permanent staff
- Travel therapy professionals averaged $60.70/hour, compared to $69.60/hour for permanent hires
These comparisons suggest that temporary staffing may offer cost advantages beyond nursing alone, depending on role and facility needs.
The study found that 17% of surveyed healthcare executives expect to increase their use of travel nurses by at least 5% in the coming year, and many respondents indicated that travel clinicians could make up approximately 7% of their nursing workforce.
According to a 2026 Cost of Labor Study and related staffing analyses, healthcare leaders say travel clinicians provide flexibility for seasonal surges, faster time‑to‑fill than permanent hires, and more predictable, fully loaded labor costs without long‑term benefit obligations.
Healthcare leaders cited several operational advantages of travel staffing, including:
According to NATHO Executive Director Holly Bass, the study highlights how assumptions about cost can change when all labor-related expenses are examined together.
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The 2026 Cost of Labor Study, conducted by KPMG for the National Association of Travel Healthcare Organizations (NATHO), was based on survey data from 100 healthcare executives nationwide. Its findings may not apply uniformly at the local level, as factors such as geographic location, specialty staffing needs, and facility size can influence whether travel staffing results in cost savings.
Rural hospitals, high-acuity specialty units, and facilities with unique workforce challenges may experience different outcomes. Organizations should conduct internal cost analyses when evaluating staffing strategies.
What This Means for Nurses and Healthcare Leaders
For nurse managers and administrators, the findings suggest that travel nurses may represent more than a short-term staffing solution and could play a role in broader workforce planning.
For bedside nurses, the data reflects continued demand for travel clinicians, particularly as healthcare systems balance staffing shortages, turnover, and patient volume fluctuations.
The full study is available through the National Association of Travel Healthcare Organizations (NATHO) for those interested in its methodology and cost modeling. While the findings may inform workforce planning discussions, they are not a substitute for facility-specific financial analysis, as local labor markets and staffing patterns can significantly influence cost comparisons.
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