Hospitals are seeing more relief on the job front as wider labor conditions become less volatile, according to a Dec. 20 report from Fitch Ratings.
Payrolls continue to increase while year-over-year wage growth has declined from recent peaks and job openings are starting to move toward pre-pandemic levels, according to the report. While these signs are promising, hospitals are not out of the woods yet.
"Hospital workers remain in a favorable position in a hypercompetitive landscape for personnel against a backdrop of higher cost of living and the exit/early retirement of some skilled labor from the workforce," Richard Park, director of the nonprofit healthcare department for Fitch, said. "Labor tensions may put more pressure on wages and subsequently make managing costs more difficult for health systems over time as union contract negotiations are occurring during a period of increased bargaining power for workers."
Over the last few months, wage growth for hospital staff has remained relatively flat, but hospital and ambulatory payrolls continue to rise and have eclipsed levels reported just before the pandemic, according to the report.
Wage growth of hospital employees has remained relatively flat over the last few months while hospital/ambulatory payrolls continue to rise and have now eclipsed levels seen just before the onset of the pandemic. While job openings remain high, the 6.4% rate recorded in October is the lowest level since early 2021.
In 2024, labor and wages will continue to be among the most critical factors that could "make or break" hospitals, which continue to battle an ongoing "labordemic," according to Fitch.
"Managing salary, wages and benefits is the single most meaningful differentiator between operational success and failure in the current environment," Mr. Park said.