MGMA’s 2025 management and staff compensation report, Talent Tug-of-War: Budget Breakers and Opportunity Makers, reveals a significant jump in health care management and support staff pay in the past year. This increase, which surpasses most others seen in the past ten years, marks a paradigm shift that practices should consider when budgeting or hiring new employees. The finding is based on data submitted from more than 4,300 medical groups across the country.
Several key roles saw double-digit compensation increases in 2024, with particular demand for revenue cycle, HR, and IT specialists, as well as managers and RNs. According to MGMA,“ The latest upward trend in compensation is not a response to short-term labor disruptions, but rather a reflection of longer-term recalibration of the workforce.” In addition to compensation growth, survey participants reported increased use of hiring bonuses, retention perks, and more generous benefits to retain essential staff.
Pay rose substantially in all areas of ambulatory care between 2015 and 2024. The largest increases were in management, accounting and nursing roles:
- Senior Management: +38.8%
- Supervisors: +36.3%
- General Accounting: +52.1%
- Registered Nurses: +64.5%
- Licensed Practical Nurses (LPNs): +49.0%
For reference, the cumulative change in the Consumer Price Index over this same period was approximately 32.3%.
In addition, practices should continue to focus on the medical assistant role; in a recent MGMA Stat Poll, almost half of respondents said medical assistant is the most difficult staff role to recruit for. In response, many organizations are now willing to hire less experienced candidates and train them, or to expand candidate pools by hiring CNAs, LPNs or EMTs for roles usually held by MAs or RNs. In 2024, another MGMA stat poll found 43% of medical groups hired alternative staff to cover MA vacancies.
Additional findings by MGMA indicate significant shifts in traditional compensation models:
- Pay compression: Some new hires now earn more than long-serving staff in the same role. This can cause morale issues and departures if not corrected – as well as a loss of institutional knowledge.
- Diminishing returns on degrees: Advanced degrees (master’s and doctoral degrees) are offering less of a pay bump than they used to. Instead, practical experience and/or knowledge in specific high-value areas (revenue cycle management, AI, IT/cybersecurity, etc.) may be more valuable to practices.
- Geographic pay differences: Western United States practices are paying significantly more than those in the South and East, requiring new strategies for these regions to remain competitive. Flexible work arrangements, signing bonuses, skill-building programs and other incentives may be helpful in level-setting.
“As a good employer you take on certain obligations and responsibilities such as fostering a positive, inclusive and supportive work environment where employees feel valued, respected, and motivated to succeed,” said Alnoor Malick, MD, FACAAI, Vice-chair of the Practice Management Committee. “This includes competitive pay and benefits, opportunities for professional development, strong leadership, and open communication.”
Some strategies for allergy practices:
- Recognize traditional merit increases of 2-4% may not keep up with current market demands, as shortages of qualified health care workers continue.
- Benchmark staff pay to ensure it is competitive.
- Address pay compression gaps to avoid alienating valued long-serving staff.
- Consider spot adjustments for critical roles and “stay bonuses,” sign-on bonuses, and reimbursement for training/certification programs.
- Monitor employee retention, turnover and engagement metrics.
- Evaluate other incentives, such as flexible work arrangements, skill-building programs, and career pathway programs.
- As a longer-term strategy, invest in creating a practice culture that attracts and cultivates talent, recognizes and rewards quality people and allows them to grow and advance in their careers.
For more resources on hiring, developing and retaining employees, visit the College’s Human Resources toolkit.
