The Hidden Cost of Workplace Violence

Workplace violence in healthcare settings has become an ever-present and growing issue, with far-reaching consequences that extend beyond the immediate physical harm to healthcare workers. 

In addition to impacting the well-being of medical professionals, workplace violence also has significant financial and operational impacts on healthcare organizations that is passed on to each patient who comes through the hospital’s doors. 

In 2016, U.S. hospitals spent an estimated $1.1 billion on security costs directly related to preventing or addressing violence on hospital premises, according to the American Hospital Association (AHA). Since the coronavirus pandemic, during which healthcare workers often became the target of violence, additional systems to enhance physical safety have become more common, including technologies that better control access to spaces, panic buttons that allow individuals to alert others when their patients or patients’ family members become dysregulated, and motion detectors — among other technologies. 

Beyond these direct costs, workplace violence leads to significant operational challenges including:

Absenteeism: On average, 13% of missed workdays in the healthcare sector are due to workplace violence. This absenteeism not only affects the quality of patient care but also increases operational costs.

Lost Productivity: Even when healthcare workers are present, they may be distracted or distressed by potential violence, which can lead to costly mistakes in patient care.

‍Increased Turnover: Violence against healthcare workers is a major contributor to staff turnover. The number of healthcare worker resignations per month grew 50% between 2020 and 2023, according to data from McKinsey. Replacing those individuals is not easy. According to the American Organization for Nursing Leadership, the average cost to replace a bedside nurse ranges from $28,400 to $51,700.

‍Workers' Compensation Claims: Hospitals face rising expenses related to workers' compensation claims resulting from violent incidents. Workers' compensation for violent incidents in hospitals covers both physical and psychological injuries. In 2016, U.S. hospitals and health systems spent approximately $429 million on medical care, staffing, indemnity, and other costs related to violence against hospital employees, according to the AHA.

‍Legal Fees: Healthcare organizations may incur significant legal costs when addressing workplace violence incidents. This includes legal representation, settlements, and judgments. Organizations may also face Occupational Safety and Health Administration (OSHA) penalties for non-compliance that come to light during these proceedings. OSHA fines can range from $16,550 for a single violation to $165,514 for willful or repeated violations.

‍Insurance Premiums: Insurers take various factors into account when raising premiums including the frequency and severity of past incidents, legal costs and settlements, and employee absenteeism. Healthcare facilities with a history of workplace violence incidents may need to divert funds away from other areas to pay higher rates if insurers deem them problematic.It is possible to mitigate the risks of workplace violence through technology. Canopy, a wearable safety technology, allows healthcare workers to alert for help when in distress.