Healthcare employment costs rise 1 percent; benefit costs grow at twice the rate of wages

Healthcare Financial Management, Dec, 2003

Total compensation for health services rose 1.0 percent in the third quarter of 2003, the Bureau of Labor Statistics (BLS) reported October 30, and healthcare worker compensation or the 12 months ending September 2003 grew by 3.8 percent. Compensation for hospitals surged 1.3 percent for the third quarter and increased 4.5 percent for the year ending September 2003. The growth rate in healthcare worker compensation has declined fairly steadily since it peaked at 1.4 percent in mid-2001.

BLS also reported that across all employment sectors the cost of health insurance continues to help drive the growth in benefit costs. In the third quarter of 2003, benefit costs increased 1.5 percent for all workers, following a 1.4 percent increase in the second quarter. Benefits continued to outpace gains in wages and salaries, which grew 0.7 percent in the third quarter. Benefit costs rose 6.5 percent for the year ending September 2003.

To get more information on the Employment Cost Index, go to www.bls.gov/news.release/eci.toc.htm.>

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