MGMA: Median Total Compensation for Nurses has Increased 19.37% Since 2018

Medical groups are struggling to recruit and retain staff members such as medical assistants, a new report from the MGMA says.

Nursing positions posted an average 8.5% increase in median total compensation from 2021 to 2022, according to a new report from the Medical Group Management Association (MGMA).

There have been widespread nursing workforce shortages at health systems, hospitals, and physician practices in recent years. The increase in nursing compensation reported in the MGMA report likely reflects efforts to recruit and retain nurses at healthcare organizations.

The new report, "Management and Staff Compensation Data Report 2023," features data on more than 157,000 management and staff positions at more than 2,940 organizations. The MGMA represents about 15,000 group medical practices ranging from private medical practices to large health systems that employ more than 350,000 physicians.

The report has several key findings:

• Median total compensation for all nursing positions has increased 19.37% since 2018
   
• The five-year compensation trends for certified nursing assistants (27.67%) and medical assistants (23.06%) were even higher
   
• From 2021 to 2022, median hourly compensation for medical assistants increased $2.14
   
• From 2021 to 2022, median hourly compensation for registered nurses and triage nurses increased $5.80 and $5.70, respectively
   
• From 2021 to 2022, there was significant compensation growth in all categories of management: executive management positions (8.99%), senior management positions (2.35%), general management positions (3.88%), and supervisors (4.52%)
   
• Registered nurses with 21 or more years of experience earned about $27,500 more than nurses with five years or less experience
   
• MGMA polls indicate that recruitment and retention of medical assistants and nurses are a top challenge at medical groups
   
• Formal diversity programs at medical groups did not gain significant traction during the coronavirus pandemic

Interpreting the data

Despite lower inflation in the U.S. economy in 2023, staff compensation growth has continued an upward trend at medical groups, the report says. "Even as inflationary growth has lost steam in 2023, the increased labor expenses for medical group practices are continuing an upward path."

Workforce issues are a top concern at medical groups, the report says. "Staffing was easily ranked as the top challenge for medical group leaders in 2023 before the start of this year, and findings from this report and other MGMA research suggest the need for continued monitoring of labor market trends and efforts to boost recruitment and retention strategies for clinical and clerical support roles throughout provider organizations."

Although the coronavirus public health emergency is over, medical groups are facing several headwinds in 2023, the report says. "Medical group leaders face the ongoing pressure to handle growing patient demand for care in the face of historic difficulties in staffing medical practices and the financial squeeze of stagnating reimbursement and ballooning prices for supplies to operate their businesses effectively."

Medical assistants pose a significant staffing challenge, the report says. "It's no secret that hiring medical assistants (MAs) following The Great Resignation has been a challenge, affecting almost all practices, and that MAs have been among the toughest non-physician roles to hire in recent years, according to past MGMA Stat polls."

Medical groups are pursuing multiple strategies to recruit and retain nurses, the report says. "Beyond higher salaries, efforts throughout The Great Resignation to recruit and retain nurses have included taking burdens off staff through more patient self-service tools, updating job descriptions to better reflect the work to be done, and adding or expanding employee benefits."

From 2020 to 2021, nursing compensation growth was higher at hospital-owned medical groups than at physician-owned medical groups, which could have negative consequences at physician-owned medical groups, the report says. "In effect, the national nursing shortage and the high demand for professional nurses could easily result in a 'bidding war' among healthcare entities. For years, physician-owned practices were able to recruit and retain nurses with promises of a better working environment and regular scheduled hours. Unfortunately, if the pay differential continues to diverge, the 'deep pockets' of hospital systems may well overcome the attraction of working in a private practice."

MGMA data indicates there has been little change in adoption of formal diversity programs at medical groups in recent years, the report says.

"Two and a half years after major protests in most major American cities and the emergence of a staffing shortage across several roles within healthcare provider organizations, the focus on diversity appears virtually unchanged: A Feb. 21, 2023, MGMA Stat poll found that 34% of medical groups report having a formal diversity program, compared to 62% that do not and 4% that are considering one. These results show only a slight shift from a similar MGMA Stat poll from July 2021 that found 32% of medical practices had a formal diversity program at the time, with nearly two-thirds (64%) without and only 4% considering adding one."

Related: AMGA: Primary Care Clinician Compensation Growth Outstrips Other Specialties