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March 22, 2022 05:22 PM

Advocate Aurora Health bucks labor cost inflation trend

Alex Kacik
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    Advocate Aurora Health's labor expenses grew at a much slower pace in 2021 than the national average, boosting its bottom line.

    Salary, wage and benefit costs only increased 3.2% from 2020 to 2021 across the 26-hospital system in Wisconsin and Illinois, Advocate Aurora reported Monday. National hospital labor expenses jumped 13% over that span, according to Kaufman Hall.

    Advocate Aurora did not have to rely as heavily on staffing agencies last year because it did not cut benefits, furlough staff or lay off employees, the not-for-profit system said in a statement. Contract labor wages surged 44% from 2020 to 2021, Kaufman Hall data show.

    Limiting its labor cost growth contributed to Advocate Aurora's $593.6 million of operating income, up from $213 million of operating income in 2020. Its revenue increased from $13.13 billion to $14.06 billion over that span.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    But Advocate Aurora is expecting a much higher percentage increase in personnel costs in 2022. The health system recently raised its minimum wage to $18 an hour and paid nearly $100 million in employee bonuses in February, the company said.

    Advocate Aurora received more than $821 million in COVID-19 relief grants over the past two years.

    To learn more about agency staffing costs and regulation, listen to Beyond the Byline.

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      • Safety & Quality
      • Transformation
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      • Regional News
        • Midwest
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      • Digital Edition (Web Version)
    • Digital Health
    • Insights
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      • Best Practices
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      • Bold Moves
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      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
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        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
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        • Top 25 Emerging Leaders
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        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
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        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
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