Workforce spending remained hospitals’ top expense in 2025, representing 60% of total expenses, according to the American Hospital Association.
Workforce costs rose 5.6% in 2025 as hospitals continued increasing wages and investing in recruitment and retention efforts for nurses, physicians and other staff, according to the AHA’s 2026 “Cost of Caring” report.
First-quarter financial reports show those workforce investments continued into 2026, with labor costs rising across most health systems. Here is how 25 health systems’ labor costs changed year over year during the three months ended March 31:
Adventist Health (Roseville, Calif.)
Employee compensation: $879 million (+1.3% YOY)
Advocate Health (Charlotte, N.C.)
Salaries, wages and benefits: $5.5 billion (+8.1% YOY)
Banner Health (Phoenix)
Salaries, benefits and contract labor: $1.8 billion (+5.9% YOY)
BayCare Health System (Clearwater, Fla.)
Salaries and benefits: $708.5 million (+6.4% YOY)
BJC Health System (St. Louis)
Salaries and benefits: $1.5 billion (+8.2% YOY)
Bon Secours Mercy Health (Cincinnati)
Employee compensation: $1.7 billion (+4.1% YOY)
Cleveland Clinic
Salaries, wages and benefits: $2.5 billion (+5.1% YOY)
Corewell Health (Southfield, Mich.)
Salaries, wages and employee benefits: $1.6 billion (+3.6% YOY)
HCA Healthcare (Nashville, Tenn.)
Salaries and benefits: $8.3 billion (+3.6% YOY)
Indiana University Health (Indianapolis)
Salaries, wages and benefits: $1.3 billion (+3.6% YOY)
Inova Health System (Falls Church, Va.)
Salaries and benefits: $955.2 million (+6.6% YOY)
Intermountain Health (Salt Lake City)
Employee compensation and benefits: $2 billion (+5.1% YOY)
Kaiser Permanente (Oakland, Calif.)
Salaries, wages and benefits: $7.4 billion (+3% YOY)
Mayo Clinic (Rochester, Minn.)
Salaries and benefits: $2.8 billion (+5.8% YOY)
Montefiore Health System (New York City)
Salaries, wages and employee benefits: $1 billion (+1.5% YOY)
Mount Sinai Health System (New York City)
Salaries, wages and benefits: $1.5 billion (-3.3% YOY)
Novant Health (Winston-Salem, N.C.)
Salaries and employee benefits: $1.5 billion (+12.9% YOY)
Presbyterian Healthcare Services (Albuquerque, N.M.)
Salaries, wages and employee benefits: $454.2 million (+9.6% YOY)
Providence (Renton, Wash.)
Salaries and benefits: $4.1 billion (+6.6% YOY)
Renown Health (Reno, Nev.)
Salaries, wages and employee benefits: $226.7 million (+4.4% YOY)
SSM Health (St. Louis)
Salaries and benefits: $3.3 billion (+12.8% YOY)
Sutter Health (Sacramento, Calif.)
Salaries and employee benefits: $2.3 billion (+6.9% YOY)
Texas Health Resources (Arlington)
Salaries, wages and employee benefits: $996.3 million (+12.8% YOY)
University Hospitals (Cleveland)
Salaries, wages and employee benefits: $965.9 million (+5.5% YOY)
UPMC (Pittsburgh)
Salaries, professional fees and employee benefits: $2.7 billion (+4.9% YOY)
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