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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.
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 will pay $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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