Logan Reid
Hospitals have a wide range of employees, from physicians to cooks, and the salaries paid to these employees are one of the biggest expenses for hospitals. In the US, the average annual salary at hospitals is around $89,120, with salaries ranging from $78,293 to $101,075. Salaries can vary based on factors such as location, industry, job category, and department, with doctors earning an average of $188,543 per year and admitting representatives earning around $31,147. Hospital salary expenses have been increasing annually, with the latest data showing that the average salary expense for US hospitals was $113 million in 2022.
| Characteristics | Values |
|---|---|
| Average salary of hospital staff in the US as of April 2025 | $30.80 an hour or $64,055 per year |
| Average annual salary of doctors at US hospitals | $188,543 |
| Average annual salary of registered nurses at hospitals | $84,910 |
| Average annual salary at US hospitals | $89,120 or $43 an hour |
| Average salary expense for US hospitals in 2021 | $113 million in 2022 |
| Percentage of hospital staff who receive overtime pay | 77% |
| Percentage of hospital staff who feel they are paid fairly | 33% |
| Percentage of hospital expenses that salary and labor expenses make up | 50% |
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What You'll Learn
Salary expenses make up half of a hospital's total expenses
Salary expenses make up about half of a hospital's total operating expenses. In 2022, the average salary expense for hospitals in the United States was $113 million. The average annual salary for hospital employees varies depending on location, industry, job category, and department, with doctor positions offering the highest average annual salary of $188,543, while admitting representative roles have an average annual salary of $31,147. The average hospital staff salary in the United States as of April 2025 is $64,055 per year, with some cities like Berkeley, CA, and Sitka, AK offering salaries above the national average. Registered nurses in hospitals earn an average of $84,910 per year.
The salary expenses of a hospital can vary depending on the size of the hospital. For example, hospitals with 25 beds or fewer spent an average of $15.5 million on salary expenses in 2022, while hospitals with more than 250 beds spent over $314 million. Salary expenses made up a larger portion of total operating expenses for smaller hospitals (42%) compared to larger hospitals with more than 250 beds (35%).
The average annual salary of US Hospitals is estimated to be approximately $89,120 per year, with the majority of pay ranging from $78,293 to $101,075 per year. Salary and labour expenses are some of the biggest hospital expenses, along with costs for contracted labour. These expenses have been increasing annually, with salary expenses increasing by about 5% on average from 2018 to 2022, while hospital expenses have risen by about 7% in the same timeframe.
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Salaries vary based on location, industry, job category, and department
Salaries in hospitals vary based on several factors, including location, industry, job category, and department. Firstly, location plays a significant role in salary determination. For example, hospitals in high-cost urban areas may offer higher salaries to attract talent, whereas hospitals in rural or less populated areas might have lower salary ranges. Additionally, the size of the hospital, measured by the number of beds, can also impact salaries. Larger hospitals with more beds tend to have higher salary expenses overall, but these salaries may represent a smaller proportion of their total operating expenses.
Secondly, the specific industry or sector within the healthcare field influences salary levels. For instance, physicians and hospital staff salaries are among the highest expenses for hospitals, impacting their financial bottom line. Hospitals in the same industry, with similar sizes and revenue structures, tend to offer comparable salary ranges. Medical research and healthcare occupations are projected to grow faster than average from 2023 to 2033, potentially influencing salary trends in the future.
Thirdly, job categories and departments within hospitals exhibit substantial salary variations. Doctors are among the highest-paid employees, with an average annual salary of approximately $188,543. In contrast, admitting representative roles are among the lowest-paid positions, with an average annual salary of around $31,147. Other positions, such as security guards and cooks, fall into different pay scales depending on their specific duties and qualifications. It's worth noting that within each department, salaries can still vary based on individual factors like experience, education level, certifications, and specific skills.
While salary ranges provide a general idea of compensation, they can differ even for the same position due to various factors. For example, a doctor's salary may vary based on their specialization, years of experience, additional certifications, and the specific department they work in. Similarly, nurses' salaries can vary based on their level of education, specialization, and the type of facility they work in. Overall, salaries in hospitals are dynamic and subject to change over time, influenced by market trends, labour demands, and the evolving landscape of healthcare.
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Overtime pay: 77% of hospital staff receive it
Hospital staff and home healthcare workers often work outside the standard 8-hour workday and 40-hour workweek. The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least the federal minimum wage of $7.25 per hour for all hours worked, as well as overtime pay for hours worked beyond 40 in a workweek. Overtime pay is calculated at a rate of time-and-one-half the employee's "regular rate" of pay, which includes their hourly rate plus the value of other types of compensation such as bonuses and shift differentials.
Hospitals are covered under the FLSA and must comply with minimum wage, overtime, and youth employment requirements. They can choose between the standard 40-hour workweek overtime system or the 8-and-80 system, where employees are eligible for overtime after working over 8 hours in a day and/or 80 hours in a two-week period. This flexibility is beneficial for hospitals due to the unusual schedules of healthcare workers, making time tracking easier.
While the FLSA does not mandate overtime pay for hours worked on weekends or holidays, it does allow hospitals to utilize a fixed work period of 14 consecutive days instead of the standard 40-hour workweek for calculating overtime. This exception requires prior agreement with employees and ensures overtime pay for hours exceeding 8 in a workday and 80 in the 14-day period.
The unique structure of the healthcare industry, including hospitals, has led to the creation of the 8/80 rule for overtime eligibility. This rule accounts for the varying schedules of healthcare workers, ensuring they receive proper overtime compensation. Employers must accurately track hours worked and pay overtime to all non-exempt employees, avoiding common errors in calculating the "regular rate" of pay.
Overtime pay is an important aspect of hospital staff compensation, with 77% receiving it. The FLSA provides guidelines for overtime calculations, and hospitals can choose the overtime system that best suits their needs while ensuring compliance with federal regulations.
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Salary expenses increase annually
Salary expenses in hospitals have been increasing annually for a variety of reasons. Firstly, hospitals are facing rising costs across the board, with total hospital expenses increasing by about 7% annually from 2018 to 2022. This includes drug spending and other non-labor costs. However, salary and labor expenses remain one of the biggest cost categories for hospitals, making up about half of a hospital's total operating expenses.
The increase in salary expenses can be attributed to several factors. One significant factor is the competition for talent and the need to retain staff. Hospitals, especially during the Covid-19 pandemic, have experienced staffing shortages, which has led to increased utilization of contract labor, driving up labor costs. To address these shortages and attract qualified professionals, hospitals have had to offer competitive wages, which has resulted in higher salary expenses. For example, registered nurses' salaries have grown 26.6% faster than the rate of inflation over the past four years, with an average annual salary of $84,910.
Additionally, hospitals in certain regions, such as the Northeastern United States, have higher salary expenses due to the higher cost of living in those areas. Hospitals with more beds also tend to have higher salary expenses, as they require a larger staff to operate. The size of the hospital also impacts the proportion of salary expenses to total operating expenses. For instance, hospitals with 25 beds or fewer spent around $15.5 million on salary expenses in 2022, while hospitals with more than 250 beds spent over $314 million.
The increase in salary expenses has contributed to the financial challenges faced by hospitals. While salary expenses have risen by about 5% annually from 2018 to 2022, Medicare reimbursement has lagged behind inflation. This has resulted in significant underpayments from Medicare and Medicaid, impacting hospitals' ability to reinvest in critical assets and infrastructure upgrades, which is essential for maintaining care quality and keeping up with evolving healthcare standards.
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Doctors are the highest-paid hospital employees
Doctors are among the highest-paid employees in hospitals. While the specific salaries of doctors vary depending on their specialty, location, and seniority, they often exceed the national median salary. According to a 2024 Doximity and Curative report, eight of the 20 highest-paying medical jobs were surgeons, with neurosurgeons, thoracic surgeons, and orthopedic surgeons being the highest-paid. The average salary for these specialists exceeds $650,000 per year, with neurosurgeons earning an average of $760,000 or more.
The high salaries of doctors can be attributed to several factors. Firstly, the medical field demands extensive schooling and residency programs, which can range from 7 to 10 or more years of education. This significant time investment in gaining the necessary knowledge and skills contributes to the higher pay. Additionally, doctors often work in high-pressure and demanding environments, requiring advanced expertise and long hours.
Another factor influencing doctors' salaries is the specialty they pursue. Surgical and procedural specialties, particularly those treating adult patients, tend to be the highest-paying. For example, neurosurgeons, who specialize in surgery involving the brain and nervous system, earn some of the highest salaries due to the complexity and critical nature of their work. Other high-paying specialties include thoracic surgery, orthopedic surgery, and vascular surgery.
While doctors' salaries are generally high, it is worth noting that there is a persistent gender pay gap in medicine. Studies have shown that male physicians earn up to 29% more than their female peers across specialties, indicating that gender-based disparities still exist within the field.
In addition to specialty and gender, location also plays a role in determining doctors' salaries. Certain states, such as Wisconsin, Indiana, and Georgia, are known for offering competitive salaries to physicians. However, it's important to consider the cost of living and other economic factors when evaluating salary data across different geographical areas.
Lastly, doctors' salaries contribute significantly to hospital salary expenses. Along with the costs of contracted labor, these expenses make up a substantial portion of a hospital's total operating expenses. As such, hospitals carefully consider their staffing and recruitment strategies to balance providing competitive salaries with managing their financial resources effectively.
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Frequently asked questions
The average annual salary for hospital staff in the US is $64,055, with an hourly wage of $30.80. However, salaries can vary depending on location, industry, job category, and department.
Salary expenses for hospital staff can vary significantly depending on the location of the hospital. For example, the average salary for hospital staff in Berkeley, CA, is $80,432, while in Daly City, CA, it is $75,415.
Aside from the base factors of location, industry, job category, and department, salaries for the same position may differ due to experience, education level, training, skills, and competencies.
Yes, hospitals typically offer a range of benefits to their employees, including overtime pay, paid sick leave, and vacation days. These benefits can vary depending on the hospital and the specific role.
Hospital salary expenses have been increasing annually, rising by about 5% from 2018 to 2022. They make up a significant portion of a hospital's total operating expenses, impacting the hospital's bottom line.
