Healthcare contract labor expenses by region

As physician and administrative shortages remain high, many health facilities are pivoting to contract labor to bolster their care teams. 

During the COVID-19 pandemic, some contractors, including travel nurses, earned up to $300 an hour. Other contractor laborers include diagnostic, therapeutic and rehabilitation services. 

Healthcare facilities in the West have the highest contract labor expenses, according to an Aug. 3 report from Definitive Healthcare based on 2021 data collected from the Medicare Cost Report. 

Yearly contract labor expenses by region: 

Midwest: $5,344,903

Southwest: $5,893,167

Southeast: $6,281,559

Northeast: $8,383,411

West: $13,605,228

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