Why physicians are watching rising labor costs

Physicians leaders may find themselves having to shell out more to cover labor costs. 

The percentage of healthcare providers with an internal minimum wage of more than $15 per hour went from 15.6% to 29.1% from 2022 to 2023, according to a survey from consulting firm SullivanCotter.

Rising labor costs in combination with increased operating costs and inflation may cause additional financial challenges.

"The increase in wages necessary to retain and recruit to skilled professional positions continues to well outpace any real or even projected rise in reimbursements," Thomas Feldman, CEO of the Peoria, Ill.-based Center for Health ASC told Becker's. "The availability of anesthesia providers is a limiting factor to flexibility and hampers the opportunity for sustained increased volume in the near term."

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