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Why would a nurse work to take care of a child who is dying when they could get the same pay to have a MA collect all their vitals and when something remotely is amiss, transfer the patient out of their care to lighten their burden?
All that being said, requiring a hospitalist fellowship with a board certification is a complete misunderstanding of the true issue. I don't think the ABP has any real understanding of the practice of pediatrics...
The answer to your question, which I suspect you know, is that some nurses, like physicians and others, would rather be in a critical care setting because that's what they like doing and they feel added value to their lives when working in that environment, even though it is more difficult. Perhaps, they should get a differential pay or other similar benefits, but that doesn't stop lots of nurses from working there. A lack of recognition that critical care nurses do get burned out, need some more help when it is busy, etc does cause high turnover and real problems. But the issue isn't just money, or, necessarily primarily money that is the problem with high turnover in critical care units that I have worked within. YMMV.
As far as fellowships for hospitalists, I think it might be best to see exactly what is proposed before being sure it must be a mistake. I am doubtful that boarding for hospitalists will make it impossible for non-boarded hospitalists to work in entirely non-academic settings.