Here are five other things for ASCs to know about shifts in the cost of labor:
1. The Consumer Price Index increase, also known as inflation, hit 2.9% in December 2024, according to the most recent available data by the Bureau of Labor Statistics. Inflation rose 0.4% from November to December 2024 and increased 3.2% year over year.
2. Supply costs per full-time employee increased 82% from 2013 to 2022 for physician-owned, multispecialty practices, according to a report released in May 2024 by the Medical Group Management Association.
3. From 2022 to 2023, the percentage of healthcare providers with an internal minimum wage of more than $15 per hour went from 15.6% to 29.1%, according to a survey from consulting firm SullivanCotter. Additionally, 90% of providers have an internal hourly minimum wage higher than the federal, state and local wages.
4. A September 2024 report by Mercer predicted a 5.8% rise in total health benefit cost per employee in 2025, even after accounting for planned cost-reduction measures.
5. The net inflation adjustment for ASCs is 2.9% in 2024, nearly a full percentage point higher than the average since 2023, according to the VMG Health 2025 Healthcare M&A Report.
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