Hospital wage inflation slows for some

Hospital wage inflation is slowing, with hourly wage growth averaging 3% in 2024, compared to 4.2% in 2023, according to a Sept. 9 Fitch Ratings report.  

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Hospital wage inflation peaked in late 2021, growing more than 8%. During 2021 and 2022, the year-over-year wage growth for nonprofit hospital employees outpaced the private sector and healthcare outside the hospital.

However, payrolls continue to rise for hospitals and ambulatory healthcare services with a 6.7% and 12.6% increase, respectively, above February 2020 numbers.

The decrease has helped some hospitals struggling to meet the demand for care, but staff shortages still abound.

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