Huntsville Hospital isn't alone in looking to labor to provide the wiggle room it needs to stay afloat. Just Google "hospital salary freezes" for the latest round-up of salary and benefits trimming.
Raises stay stagnant
The industry at large isn't in for much of a raise in 2014.
According to a survey on healthcare compensation released by Compdata Surveys last week, raises at critical access hospitals and physician clinics have decreased to 2.6%, compared to 2.8% in 2010. Hospitals have also reduced raises slightly from 2.4% in 2012 to 2.3% in 2013. Overall, the industry-wide forecast for compensation increases in 2012 is 2.4%.
More than 74% of healthcare employers budget pay increases to plan for raises to employee salaries, averaging 2.1%. Thirty-nine percent of healthcare employers will base the pay increases on market-based adjustments, while 18.4% plan to use promotion-based raises. Another 11% of employers will base pay increases on cost of living adjustments, with the average raise in that category at 2.2%.
The Compdata survey, which draws on more than 8,300 healthcare employers, predicts a slightly improving trend for the healthcare industry at-large in 2014, with 2.5% average increases in compensation.