Here's how NLC can affect your hospital!

Aug 3, 2023Reading Time: 4 mins read
Human ResourcesQuality and Safety

As a healthcare manager, you are always on the lookout for ways to improve your hospital's staffing and efficiency. The National Council of State Boards of Nursing (NCSBN) has proposed the Nurse Licensure Compact (NLC) as a solution to this problem. The NLC allows registered nurses and licensed practical/vocational nurses to have one multistate license, which enables them to practice in person or via telehealth in both their home state and other NLC states. This can be a game-changer for hospitals that struggle with chronic nursing shortages.


What is the NLC?

The NLC is a compact that allows registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs) to have one multistate license, with the ability to practice in person or via telehealth, in both their home territory/state and other NLC states. The NLC has been operational for more than 20 years, though a new and modernized version of the licensure was drafted and approved by boards of nursing in 2015. Since then, 38 states and two territories—Guam and the U.S. Virgin Islands—have enacted the NLC legislation.


Benefits of NLC for hospitals

One of the key benefits of the NLC for hospitals is that it can help alleviate nursing shortages. Hospitals that are in states that have enacted the NLC can more easily recruit nurses from other NLC states, which can expand their pool of potential hires. This can be particularly useful for hospitals that are located in rural areas or have a high demand for nursing staff.


Another benefit of the NLC is that it can help hospitals that have telehealth programs. Nurses with multistate licenses can provide care to patients across state lines, which can be a significant advantage for hospitals with telehealth programs. This can expand their reach and enable them to provide care to patients who may not have access to local healthcare facilities


Additionally, Nurses with a multistate license can practice in multiple states without having to wait for additional licensure. This means that healthcare organizations can quickly deploy nurses to areas of need and maximize the output from these nurses.


Impact of NLC on Nurses

The NLC also has several benefits for nurses. Nurses who hold a multistate license can practice in multiple states, which can make it easier for them to travel and work in different locations. This can be particularly useful for travel nurses or those who want to remain competitive in a telehealth workforce.


In addition, the NLC can help relieve the burden of holding and maintaining licenses for nurses who work across state lines. Without the NLC, nurses may need to obtain and maintain up to 50 licenses to properly care for their patients. The NLC can help alleviate this burden by creating a multistate license that is valid in all NLC states.


Impact on Hospital Staffing

The nursing shortage is a significant challenge facing healthcare organizations today. The NLC can alleviate some of the staffing issues facing hospitals by increasing access to nurses from other states. This is particularly important in areas that have a high demand for nursing services.


According to the American Nurses Association (ANA), the demand for nurses is expected to continue to grow. By 2022, there will be a need for 1.1 million new nurses to offset the shortage caused by retiring nurses and an aging population. The ANA also predicts that the nursing shortage will be most severe in the South and West regions of the United States.


The NLC can help hospitals in these regions address the nursing shortage by providing access to nurses from other states. This can be particularly important in rural areas where the shortage is often more severe.


Challenges to NLC adoption

While the NLC has many benefits, there are also challenges to its adoption. Some states have not yet enacted the NLC legislation, and some nursing unions have expressed concerns about how the NLC may impact their bargaining power during times of strike when facilities have to bring in nurses quickly to care for patients. There are also concerns about public safety in bringing in nurses from other states and whether an unsafe nurse can continue traveling between states to avoid disciplinary action and being caught.


It is important for hospital executives to recognize that while NLCs are not a panacea for nursing shortages, they provide a valuable tool to mitigate the ongoing challenges. By embracing NLCs, hospitals can enhance their recruitment strategies, optimize staffing levels, and improve patient care. Moreover, NLCs align with the broader goal of creating a more agile and resilient healthcare workforce that can adapt to the evolving needs of patients and the healthcare industry.


In Conclusion, the Nurse Licensure Compact is a tool that healthcare organizations can use to address the chronic nursing shortage. The NLC allows nurses to practice in multiple states with a single license, making it easier for healthcare organizations to hire nurses from other states and deploy them quickly to areas of need. The NLC also provides opportunities for healthcare organizations to expand their telehealth offerings.


As a healthcare manager, it is important to understand the impact of the NLC on your hospital. By taking advantage of the benefits offered by the NLC, you can help to address the nursing shortage and provide better care to your patients.

Article Written by
Riley Carter