Final answer:
The most significant cost for a nursing facility is labor, including both salaries and benefits. Rising salaries may lead to a decrease in the quantity of nurses hired and an increased investment in technology to mitigate costs.
Step-by-step explanation:
The most significant cost for a nursing facility is labor. This encompasses not only the salaries that are paid to the nurses but also the benefits which can be a substantial part of labor compensation, sometimes as much as 30 percent. The quantity of nurses hired and their compensation is a critical factor in the total cost of running a nursing facility. When salaries for nurses rise, the quantity of nurses demanded by the facility typically falls due to cost pressures. Some facilities may then reduce their nursing staff or seek to replace some nursing functions with cost of technology, like computer monitoring systems, to maintain manageable expenses.