Hackensack Meridian Reduces Nurse Vacancy Rate, Saves Millions

Health system's workforce stabilization efforts lead to 4% nurse vacancy rate and $41 million in savings.

Published on Feb. 21, 2026

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Hackensack Meridian Health, a New Jersey-based health system, has seen significant improvements in its nursing workforce after implementing a focused stabilization strategy. The system's nursing vacancy rate has dropped to around 4%, with two hospitals operating below that level. Retention has also strengthened, reducing reliance on costly agency staff. These gains have translated to a $41 million reduction in contracted labor and agency utilization last year.

Why it matters

In an environment where labor remains the largest expense line for most hospitals, Hackensack Meridian's workforce stabilization efforts have directly protected its financial margins. Improved retention also enhances consistency in patient care and lowers the indirect costs associated with onboarding and overtime.

The details

Hackensack Meridian's turnaround began with a clear priority: stabilize the nursing workforce and rebuild retention. The system implemented various programs to support nurses, including tuition reimbursement, scholarships, and bonuses. Additionally, the health system's senior leaders, including the CEO and COO, regularly round in hospitals, reinforcing trust during periods of change. Hackensack Meridian also leveraged technology, such as virtual nursing and AI-powered nursing notes, to ease the administrative burden on clinicians.

  • Hackensack Meridian's nursing vacancy rate is now around 4%, with two hospitals operating below that level.
  • The health system reduced its contracted labor and agency utilization by $41 million last year.

The players

Regina Foley

President of specialty hospitals and clinical services and chief nurse executive of Hackensack Meridian Health.

Hackensack Meridian Health

A New Jersey-based health system that operates 18 hospitals, 500 locations, and employs 38,000 team members across eight counties.

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What they’re saying

“Behind the scenes, there's different kinds of unique programs to help on the retention and recruitment side because our care is local. Our team members are local.”

— Regina Foley, President of specialty hospitals and clinical services and chief nurse executive (Becker's Healthcare Podcast)

“Culture really sets the tone of how you're able to really move the needle in your organization, whether it be workforce, whether it be financial results or a situational issue.”

— Regina Foley, President of specialty hospitals and clinical services and chief nurse executive (Becker's Healthcare Podcast)

What’s next

Hackensack Meridian plans to quantify the hard savings associated with its virtual nursing and AI-powered nursing note initiatives, as the CEO and board are looking for tangible financial benefits from these technology investments.

The takeaway

Hackensack Meridian's successful workforce stabilization efforts, which include a focus on retention, community-based programs, and leveraging technology, demonstrate how health systems can protect their financial margins and improve patient care by prioritizing a stable and engaged nursing workforce.