The hospital workforce is critical to the care process and is most often the largest expense on a hospital or health system's balance sheet. Even before the pandemic, labor expenses — which include costs associated with recruitment and retention, employee benefits and incentives — accounted for more than 50 percent of hospitals' total expenses, according to the American Hospital Association.
As a result, a slight increase in labor costs can have a tremendous effect on a hospital or health system's total expenses and operating margins. Hospitals across the country are focused on managing the premium cost of labor, while recruiting and retaining talent remains a priority, and the cost of supplies and drugs also increases due to inflation.
Here's how 15 health systems' labor costs are tracking based on the results of their most recent financial documents.
Note: This is not an exhaustive list. Health systems' labor costs are for the three months ended Sept.30. The year-over-year percentage increase/decrease is also included.
Altru (Grand Forks, N.D.)
Q3 salaries, benefits and contract labor: $101.2 million (+6.8 YOY)
Ardent Health (Nashville, Tenn.)
Q3 salaries and benefits: $635.2 million (+6.7% YOY)
Beebe Healthcare (Lewes, Del.)
Q1 salaries and benefits, physician fees and contract labor: $94.7 million (+3.7% YOY)
Community Health Systems (Franklin, Tenn.)
Q3 salaries and benefits: $1.4 billion (1.6% YOY)
HCA Healthcare (Nashville, Tenn.)
Q3 salaries and benefits: $7.9 billion (+4% YOY)
IU Health (Indianapolis)
Q3 salaries, wages and benefits: $1.3 billion (+10.1% YOY)
Legacy Health (Portland, Ore.)
Q2 salaries, wages and benefits: $455.4 million (+5.4% YOY)
Luminis Health (Annapolis, Md.)
Q1 salaries, wages and benefits: $176.1 million (+7.9% YOY)
Nicklaus Children's Hospital (Miami)
Q3 salaries and benefits: $75.9 million (+0.9% YOY)
Norton Healthcare (Louisville, Ky.)
Q3 salaries, wages, benefits and contract labor: $608 million (+15.9% YOY)
Peace Health (Vancouver, Wash.)
Q1 salaries, wages and contract labor: $460.9 million (+7.9 YOY)
Temple Health (Philadelphia)
Q1 salaries and benefits: $400.9 million (+7.1% YOY)
Tenet Healthcare (Dallas)
Q3 salaries, wages and benefits: $2.2 billion (-3.1% YOY)
Trinity Health (Minot, N.D.)
Q1 salaries, wages and benefits: $66.9 million (+0.5% YOY)
Universal Health Services (King of Prussia, Pa.)
Q3 salaries, wages and benefits: $1.9 billion (+7.1% YOY)