MGMA: Nursing Compensation Increases as Staffing Challenges Continue

Compensation increased for all nursing positions in 2022 as staffing challenges push medical groups to focus on recruitment and retention, a report from the Medical Group Management Association (MGMA) found.

The MGMA DataDrive Management and Staff Compensation report includes data on more than 157,000 management and staff positions from over 2,940 organizations.

The report shared data on five clinical and nursing staff positions: certified nursing assistants, medical assistants, licensed practical nurses (LPNs), registered nurses (RNs), and triage nurses. All nursing positions saw an average 8.5 percent increase in median total compensation from 2021 to 2022 and a 19.37 percent increase from 2018.

Certified nursing assistants and LPNs saw the highest one-year compensation increases of 10.59 percent and 18.70 percent, respectively. Compensation grew by 7.09 percent for medical assistants, 5.35 percent for triage nurses, and 5.02 percent for RNs.

Hourly rates for clinical and nursing staff also grew between 2021 and 2022. RN and triage hourly rates rose the most by $5.80 and $5.72, while hourly rates increased by $2.14 for medical assistants, $1.90 for certified nursing assistants, and $1.29 for LPNs.

Compensation for management positions rose from 2021, with increases ranging from 2.35 percent for senior management positions to 8.99 percent for executive management positions, the report noted.

As the COVID-19 pandemic led many veteran nurses to leave the industry or shift roles, experienced nurses are in demand. The difference in compensation between nurses with five years or less and 21 or more years of experience ranged from $6,944 to $27,564.

The report referenced a previous MGMA poll that found that 67 percent of medical group leaders reported updating recruiting and retention strategies for medical assistants in the past year.

Respondents said they have increased compensation and bonus incentives, expanded the use of sign-on bonuses, engaged outside agencies to grow their pool of candidates, and started collaborating with medical assistant school programs.

Medical groups also reported implementing in-house training and certification programs, creating more part-time positions, and shifting administrative duties away from medical assistants to boost recruitment and retention.

Even as medical groups work on improving recruitment and retention, a significant nursing shortage remains.

An analysis from the National Council of State Boards of Nursing revealed that 800,000 RNs plan to leave the field by 2027, while an AMN Healthcare report indicated around 3 in 10 RNs will leave their career due to the pandemic.

Among medical groups who said their recruitment and retention efforts have been unsuccessful, many cited a lack of worker availability and strong competition from hospitals and health systems regarding signing and starting bonuses.

Faculty shortages at nursing schools are also exacerbating the nurse workforce shortage. The American Association of Colleges of Nursing found that nursing schools in the US turned away over 91,000 qualified applications in 2021 due to a lack of faculty, clinical sites, classroom space, and budget constraints.