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.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.