Clinic Staffing Costs Up 10% This Year

May 31, 2023 - Clinic staffing costs continue to increase despite some stabilization of overall finances, pushing medical groups and health systems to address labor shortages.

AMGA recently reported in the “2023 Clinic Staffing Survey” that clinic staffing costs are up by 10 percent compared to last year as medical groups and health systems continue to struggle with staffing levels. The survey included responses from medical groups representing more than 6,100 clinics.

Healthcare staffing has improved compared to the recent past, during which healthcare workers experienced record levels of stress and burnout from the COVID-19 pandemic. At the same time, clinics managed a surge of high-acuity patients infected with the virus.

Hospital and physician financial performance are rebounding from lows in 2020 and 2021, with hospitals reporting positive operating margins for the first time in 15 months last month. Physician and provider productivity also increased this year, resulting in a significant boost in net patient revenue per provider FTE. Still, labor shortages and costs continue to haunt financial performance.

The survey found that most clinics — 41 percent — are between 80 and 80 percent to their optimal staffing level as of the start of 2023. And while no respondent said their clinic was at optimal staffing, about a quarter said they are between 90 and 99 percent there.

Clinic staffing was also up slightly, suggesting a turn toward pre-pandemic levels. There is a median of 2.12 total clinic staff per provider this year compared to 2.03 last year and 1.83 percent in 2021. In 2020, there was a median of 2.13 total clinic staff per provider.

Still, slightly more than a third of respondents said their clinics are 79 percent or below their optimal staffing levels, with 12 percent of those medical group leaders saying they are less than 70 percent to the optimal level.

According to AMGA Consulting Director Elizabeth Siemsen, clinic staffing seems to be stabilizing. However, Siemsen pointed out that clinics still lack some clinical support roles, such as RNs, LPNs, and MAs.

A study released by the National Council of State Boards of Nursing recently found that about 100,000 RNs, or registered nurses, left the workforce over the last two years because of stress, burnout, and retirements, and over 610,000 more will leave by 2027.

To boost staffing levels, medical groups are considering incentives to bolster recruitment and retention. About 88 percent of respondents said their organizations offer referral bonuses, and almost 78 percent offer sign-on bonuses. Additionally, about 56 percent are making benefit package changes.

AMGA reported that all percentages were up compared to last year.

Medical groups are also making process changes to support clinic staffing, particularly around technology, according to the survey. Most organizations are automating front-end tasks, with approximately 91 percent using an online patient portal and 66 percent using self-check-in or kiosks for office visits.

Changes to the care or staffing model are also occurring to manage sub-optimal staffing levels at clinics. AMGA said the data suggests an increase in the number of medical groups changing clinical staff team structure, with leaders taking a closer look at clinic roles and how to optimize them.

“Medical groups are in unchartered waters, trying to navigate the unprecedented impact of staffing challenges that emerged from the pandemic and are ongoing,” Rose Wagner, RN, MHS, FACMPE, AMGA Consulting chief operating officer, said in the press release.