The staffing squeeze: Why above-minimum pay still isn’t enough

Rihan Javid, D.O., J.D. lays out why paying above minimum wage doesn’t actually make physician practices competitive in today’s labor market.

He notes that in places like California, healthcare minimum wage may start at $25 an hour, but large health systems and public employers — from University of California Health to state agencies and major universities — layer higher hourly rates on top of rich benefits, pensions and 401(k) contributions.

That means a small practice or rural hospital is often trying to hold onto staff while effectively competing against total compensation packages worth $35 to $45 an hour or more. For many independent groups, he says, that gap is simply not sustainable without rethinking their staffing model.