The earnings have increased 1.5 percent to 1.7 percent since November 2011. Here are five things to know about the increase and how it will impact the industry in the future:
1. The interest rate growth is similar to the average inflation rate. So far, more than 2.6 million people have been recruited in to the medical profession over the past few years, but shortages still loom.
2. The Association of American Medical Colleges reports the United States will have a 62,900 physician shortage next year, with 33,100 of those being specialty physicians. When demand outstrips supply, salary expectations will increase for physicians with a greater increase in specialty hospitals than other hospitals.
3. The trained medical professionals shortage could lead to additional average earnings per hour increases. There is an expected 6 million-position nursing shortage through 2022.
4. A nurse shortage could lead to a supply and demand mismatch that would increase salary expenses as a percentage of the hospital industry’s total revenue. This could impact ASCs as they compete for the most talented nurses. Some ASCs offer more stable hours and predictable lifestyles as an advantage over hospital employment when hospitals may be able to offer nurses higher salaries.
5. Higher earnings and salaries for healthcare workers could reduce revenue for the hospital industry, ultimately reducing profitability. The big hospital operators report spending around one-third of revenues on employee salaries.
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