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 23 health systems' labor costs are tracking based on the results of their most recent financial documents.
Note: This is not an exhaustive list. Most of the following health systems' labor costs are for the three months ending 30, with others for the six months ending June 30 and the 12 months ending June 30 — the most recent periods for which financial data is available. The year-over-year percentage increase/decrease is also included.
1. HCA Healthcare (Nashville, Tenn.)
Q2 salaries and benefits: $7.3 billion (+7.1 percent YOY)
2. Tenet Healthcare (Dallas)
Q2 salaries, wages and benefits: $2.3 billion (+7.5 percent YOY)
3. Community Health Systems (Franklin, Tenn.)
Q2 salaries and benefits: $1.3 billion (+3.2 percent YOY)
4. Universal Health Services (King of Prussia, Pa.)
Q2 salaries, wages and benefits: $1.8 billion (+4.7 percent YOY)
5. Mayo Clinic (Rochester, Minn.)
Q2 salaries and benefits: $2.4 billion (+5.9 percent YOY)
6. SSM Health (St. Louis)
Q2 salaries and benefits: $1.1 billion. (+14.1 percent YOY)
7. Cleveland Clinic
Q2 salaries, wages and benefits: $2.1 billion (+8.9 percent YOY)
8. McLaren Health Care (Grand Blanc, Mich.)
Q2 salaries, wages, employee benefits and payroll taxes: $1.3 billion (+0.5 percent)
9. Sutter Health (Sacramento, Calif.)
Q2 salaries and employee benefits: $1.7 billion (6.7 percent YOY)
10. IU Health (Indianapolis)
Q2 salaries, wages and benefits: $1.1 billion (-1.6 percent YOY)
11. Mass General Brigham (Boston)
Q2 employee compensation and benefits: $2.4 billion (+4.2 percent YOY)
12. ProMedica (Toledo, Ohio)
Q2 salaries, wages and employee benefits: $388.8 million (-2.5 percent YOY)
13. Orlando (Fla.) Health
Q2 salaries and benefits: $734.4 million (+17.9 percent YOY)
14. MultiCare Health (Tacoma, Wash)
Salaries, wages and employee benefits: $1.5 billion (+14.4 percent YOY)
*For the six months ended June 30
15. Banner Health (Phoenix)
Salaries, benefits and contract labor: $3 billion (+4.7 percent YOY)
*For the six months ended June 30
16. UPMC (Pittsburgh)
Salaries, professional fees and benefits: $4.8 billion (+6.7 percent YOY)
*For the six months ended June 30
17. Northwell Health (New Hyde Park, N.Y.)
Salaries and employee benefits: $5.3 billion (+10.6 percent YOY)
*For the six months ended June 30
18. Providence (Renton, Wash.)
Salaries and benefits: $7.5 billion (+4.9 percent YOY)
*For the six months ended June 30
19. Sanford Health (Sioux Falls, S.D.)
Salaries and benefits: $1.8 billion (+2.6 percent YOY)
*For the six months ended June 30
20. Intermountain Health (Salt Lake City)
Employee compensation and benefits: $3.4 billion (+27.9 percent YOY)
*For the six months ended June 30
**Merged with Broomfield, Colo. -based SCL Health in April 2022
21. CommonSpirit Health (Chicago)
Salaries and benefits: $18.3 billion (+0.7 percent YOY)
*For the 12 months ended June 30
22. Ascension (St. Louis)
Salaries, wages and employee benefits: $14.3 billion (-1.3 percent YOY)
*For the 12 months ended June 30
23. Mercy Health (Chesterfield, Mo.)
Salaries and benefits: $4.6 billion (+5.3 percent)
*For the 12 months ended June 30
Editor's note: This article was updated Oct. 2 at 4:30 p.m. CT.