1. Business Case for Magnet Designation
Carolyn Baggett
Florida Atlantic University

2. Magnet Recognition program
“The power of nursing drives exceptional performance and helps organizations meet the demands of today’s complex healthcare environment for better care, better access, and lower cost.”
“With excellence in nursing care comes excellence in patient care. Magnet recognition provides a roadmap for nurse executives to achieve these goals.” 
(Drenkard, K., 2013, S3)

3. What is magnet?
Credential from American Nurses Credentialing Center (ANCC)
Strategic platform for performance improvement
Requirement: “Develop, disseminate and enculturate evidence-based criteria” through research
Result: Increase patient satisfaction & outcomes; Increase in job satisfaction
(Drenkard, K., 2010, p.263)

4. Magnet model Structural Empowerment Exemplary Professional Practice
Decision making bodies:
Shared Governance
Excellence in patient care
Safe, efficient, effective operations
Exemplary Professional
Practice
Inter-professional collaboration
Safety, quality monitoring, quality
improvement
Improve patient outcomes
(ANCC, n.d.)

5. Magnet model New Knowledge, Innovations & Improvements
Explore best practices for patients
Integrate Evidence-Based Practice
Research clinical & operational
processes
Empirical Outcomes
Measurement of quality outcomes
to nursing leadership and practice
(ANCC, n.d.)

6. Transformational Leadership
Impact on nurse leaders
Broaden and elevate interests of team members
Generate commitment to organization’s mission & values
Allow team members to rise above their own interests to improve the team
(Weberg, D, 2010)

7. Transformational Leadership
Practice Caring Leadership
Encourage staff to be more proactive
Support and advocate for the staff
Encourage participation in Evidence Based Practice research
(Hayden, M., et al, 2016)

8. Transformational leadership
Outcomes
Create positive work environment
Improve staff retention
Empower bedside practitioner
(Weberg, D, 2010)

9. Return on Investment Improve quality indicators Reduce costs
Increase reimbursement
(Drenkard, K., 2010)

10. Return on investment: HR
Increase RN retention
Decrease RN burnout
Decrease RN vacancy rate
Decrease RN turnover rate
(Drenkard, K., 2010; Renter, M. & Allen, A., 2014)

11. Return on investment: Cost
Decrease in RN agency rates
Cost $40-$60/hour
Decrease in staff turnover
Cost of turnover for one RN: $ 38,900- $59,700
Average lost annually: $5.13 M- $7.86 M
Value-Based Purchasing
30% of score based on patient reports
of care
Increase in HCAHPS survey scores
Decrease in 30-day readmissions
Increase reimbursement
(Drenkard, K., 2010; McHugh, M., 2013; Russell, J., 2010; Smith, S., 2014; NSI Nursing solutions, 2017)

12. Return on investment: Service
Better outcomes in nurse job satisfaction
85% are very or somewhat satisfied
Better patient satisfaction scores
Lower mortality rate
More RNs with BSN & Specialty certifications
Career development & continuing education
(Drenkard, K., 2010; McHugh, M. et al., 2013)

13. Return on investment: Quality & safety
Lower incidence of pressure ulcers: Daily cost of $5177
Lower incidence of falls: Each fall costs $1019- $4235
Better mortality outcomes (30 days from admission)
Decrease Occupational Health Injuries:
Needle sticks (Average 67/year/hospital): $405/event
Musculoskeletal injuries: $50,000- $100,000 per injury
(Drenkard, K. 2010)

14. Return on investment: Overall
Increase operating margin (due to
investment in nursing services)
4% to 16%
Typical 500 bed hospital estimates savings:
$2,308,350- $2,323,350
(Drenkard, K., 2010)

15. References American Nurses Credentialing Center (ANCC). (n.d.). Magnet
Model. Obtained October 17, 2017 from
ProgramOverview/New-Magnet-Model
Drenkard K. (2010). The business case for Magnet. J Nurs Adm.
40(6):
Drenkard K. (2013). The value of Magnet. J Nurs Adm. 43(10):S2-3.
Hayden, M., Wolf, G., Zedreck-Gonzalez, J. (2016). Beyond Magnet
Designation. Journal of Nursing Administration, 46(10),
McHugh M, Kelly LA, Smith HL, Wu ES, Vanak JM, Aiken LH. (2013).
Lower mortality in Magnet hospitals. Med Care. 51(5):382-8.
McHugh MD, Ma C. (2013). Hospital nursing and 30-day
readmissions among Medicare patients with heart failure, acute
myocardial infarction, and pneumonia. Med Care. 51(1):52-9.

16. References
NSI Nursing Solutions. (2017) National Health Care Retention & RN Staffing Report. Obtained from Renter, M. & Allen, A. (2014, Mar). How Magnet designation affects nurse retention: An evidence-based research project. Obtained October 12, 2017 from designation-affects-nurse-retention-an-evidence-based- research-project/ Russell, J. (2010, Sept.). Journey to Magnet [TM]: costs vs. benefits. Nursing Economics, 28(5), Smith, S. (2014, Feb). Magnet hospitals: Higher rates of patient satisfaction. Policy, Politics & Nursing Practice, 15(1-2), Weberg, D. (2010). Transformational leadership and staff retention. Nursing Administration Quarterly, 34(3),