Harrisburg, PA – A recent Forbes article by Maria Flynn specifically highlights Governor Josh Shapiro’s proposed Nurse Shortage Assistance Program as a potential national model for addressing critical workforce shortages in nursing and beyond.
Governor Shapiro’s 2025-26 budget proposal calls for an initial state investment of $5 million to launch the Nurse Shortage Assistance Program, which will facilitate innovative partnerships between hospitals and nursing schools. Through this collaboration, hospitals commit to repaying significant portions of student loan debt for nursing graduates who dedicate three years to working in specific Pennsylvania hospitals after graduation.
The Governor’s proposed program would invest state dollars to complement similar loan assistance programs currently offered through various health systems and universities. The Forbes article highlights the unique public-private partnership structure:
“The Scholars Network is leading the initial phase of the program, using funds provided by the state legislature in 2024 and matched by tens of millions in sponsorship commitments from hospitals. Students from schools including Temple, the University of Pittsburgh, and Pennsylvania College of Technology are already benefiting from this kind of public-private funding match where employers are required to shoulder most of the sponsorship cost. Hospitals repay student loan debt in monthly installments during the nurse’s employment. If a nurse leaves early, the payments stop.”
Dr. Edmund Sabanegh, CEO of Guthrie Clinic — a rural health system and early adopter of this assistance model — praised the Governor’s initiative for improving workforce stability and significantly reducing healthcare staffing costs:
“This program will add new nurses to Pennsylvania’s workforce, saving significant costs by reducing staffing turnover and creating stability in Pennsylvania’s rural hospitals. We believe this program will bolster workforce education, reduce training needs, and save our system thousands of dollars per nurse due to reduced turnover, staffing agency dependence, and improved bed utilization.”
The Forbes reporter further underscores the potential of Pennsylvania’s model to address systemic labor shortages beyond nursing:
“Pennsylvania’s approach can serve as a template for other states grappling with healthcare shortages. And the same structure could apply well beyond healthcare, such as the teacher shortage, where similar shortages and systemic barriers are holding back progress. By investing strategically in higher education and workforce development, states can move from reactive to proactive. They can align employers, educators, and government around not just creating good jobs but also making sure more people can access and thrive in them.”
Read the full Forbes article by Maria Flynn here: "The Nursing Crisis Seen In The Pitt Is Real. Here’s Hope For Solving It" (4/14/2025)
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