Politico September 10, 2024
FOLLOW THE MONEY
Hospital wage inflation is cooling, says a new report, offering a reprieve to health systems struggling to meet the demand for care.
The year-over-year wage growth for nonprofit hospital employees has slowed substantially after a sustained period in 2021 and 2022 during which it outpaced the private sector as a whole and health care outside the hospital, according to the new report from Fitch Ratings.
Hourly wage growth averaged 3 percent in 2024, compared with 4.2 percent in 2023. Hospital wage inflation peaked late in 2021 at more than 8 percent.
But hospitals still spend significantly on labor, both due to wage inflation and an increase in their workforce since 2022 to address demand for care that...
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