Hospitals pay more for employees than do other industries
NEWS IN BRIEF — Posted March 22, 2010
The health care industry continued to be a source of higher-paying jobs in a struggling economy.
According to a Bureau of Labor Statistics report issued March 10, hospitals spent $36.14 for an hour of an employee's work, including salary and benefits, in the final quarter of 2009. Private industry and government entities generally spent $29.37. Also, hospitals tended to spend a larger proportion of total compensation on employee benefits than on salary.
Benefits, which include such items as paid time off or insurance, made up 30.2% of the expense of an employee in the economy as a whole, but 32.5% of the cost of those working in the hospital setting.
Hospitals spent $24.38 per hour on employee wages and $3.18 on paid leave. Supplemental pay cost $1.09, and insurance was $3.51. Retirement expenses were $1.42, and $2.57 went to benefits that were legally required.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/03/22/bibf0322.htm.