CMS Takes Aim at Nurse Churn

The newly created Nurses for Nursing Homes program will provide eligible nurses and nursing students with up to $40,000 in student loan repayment and a $10,000 stipend in exchange for a three-year commitment to work at qualifying nursing homes. CMS is contributing $100 million to the program, while states are expected to provide at least $175 million through civil monetary penalties collected from nursing homes. All 50 states and the District of Columbia are participating. Estimates suggest the initiative will support more than 4,000 nurses and nursing students nationwide. CMS Administrator Dr. Mehmet Oz was quoted in Healthcare Finance News,

When we offer student loan repayment through Nurses for Nursing Homes, we’re not just giving nurses and nursing students future financial relief; we’re supporting families who want their loved ones to receive quality care in nursing homes. Without taking a dime from taxpayers, CMS is empowering the next generation of nurses to pursue their dreams and helping residents form deep bonds with caregivers so they can live happier, healthier lives.

This new initiative builds on earlier nursing home workforce efforts and follows the repeal of the federal minimum staffing mandate for long-term care facilities in late 2025. The program gives nursing homes a new recruitment tool at a time when healthcare organizations nationwide are reporting persistent workforce challenges. Participating registered nurses and licensed practical or vocational nurses must work at least 30 hours per week at eligible facilities, with payments distributed quarterly after employment is verified. The initiative could be particularly significant in Arizona, where workforce pressures remain acute. Time magazine reported this summer that the state has nearly 30,000 nursing vacancies, highlighting ongoing challenges in attracting and retaining clinical staff. This suggests the issue extends beyond simply producing more nurses. More than 280,000 people passed the NCLEX nursing licensure exam in 2025, a 34% increase from 2016, and roughly 7 million nurses hold active licenses nationwide. However, many licensed nurses are no longer working in direct patient-care roles. Karen Lasater, a nursing professor at the University of Pennsylvania, told Time,

We’re really putting a lot of money into building a pipeline for nursing, but if nurses are leaving after a year or two of getting into employment, the problem isn’t so much a pipeline problem as a leaking gas tank.

Burnout, understaffing, verbal abuse and workplace violence continue to drive nurses away from bedside care despite strong demand and rising wages. The Wall Street Journal cited workforce experts, noting that many nurses are shifting to less stressful roles in telehealth, urgent care and advanced practice settings. “There is no shortage of nurses in this country,” said Jeff Doucette, chief nursing officer at Press Ganey. “There’s a shortage of nurses that want to work in the current environment.”