CHICAGO--(BUSINESS WIRE)--SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and data products for health care and not-for-profits, has released its 2024 Advanced Practice Provider Compensation and Productivity Survey Report.
With the advanced practice provider (APP) workforce in high demand, median total cash compensation (TCC) continues to grow across all specialty categories. The 2024 results show the highest year-over-year increases for Surgical specialties at 6.0%. While Primary Care (5.7%) and Medical specialties (5.5%) follow closely behind, the report indicates more modest growth for Hospital-Based specialties at 3.7%. Base hourly rates for each category have followed a similar and steady growth trajectory.
When looking back even further, the data reflects ongoing competition for APPs in a tight market for talent. From 2021-2024, median TCC for nurse practitioners and physician assistants combined has risen a sizable 17% for Primary Care, 15% for Surgical, and 14% for both Medical and Hospital-Based specialties. TCC has grown even more rapidly for CRNAs and CAAs and has increased by approximately 22% in the past three years.
“For most health systems, the demand for care is at an all-time high while the industry is simultaneously facing labor shortages. The competition for APP talent is unprecedented and is placing upward pressure on compensation as organizations look to bridge the gap between higher patient volumes and limited access to care,” said Zachary Hartsell, APP Workforce Practice Leader, SullivanCotter.
In addition to higher salaries, organizations are also utilizing bonuses to aid in APP recruitment and retention as they move forward in a post-pandemic environment. Since 2022, the prevalence of sign-on bonuses has increased from 74% to 82% while the prevalence of retention bonuses has increased from 44% to 50%. Incentive compensation is evolving as well – especially in Primary Care settings. The 2024 survey reports that 50% of organizations utilize incentive pay for at least some of their APPs, with 74% of these organizations structuring incentives as add-on dollars rather than at-risk compensation.
As in prior years, many health care organizations remain focused on addressing turnover and burnout as an additional way to stabilize their APP workforce. This often includes a re-evaluation of work effort, scheduling burden, and premium pay practices. In 2024, average external (11%) and internal (6%) turnover rates were both down 1% from 2023. “With the direct cost of turnover estimated to exceed $120,000 per person, a reduction in turnover can have a significant financial impact on an organization – especially one with a sizable APP workforce,” added Hartsell.
Additionally, many organizations are looking to have greater consistency in APP leadership leveling, compensation, and administrative time. SullivanCotter reported four levels of APP leader compensation data including clinical-level, management-level, head of advanced practice, and top APP executive. SullivanCotter research has shown that the presence of an APP leader is associated with 2% less turnover and a positive but not statistically significant increase in APP productivity.
SullivanCotter’s 2024 Advanced Practice Provider Compensation and Productivity Survey provides critical benchmarking data on compensation levels and pay practices. As one of the most comprehensive resources of its kind for hospitals and health systems nationwide, the survey includes information from nearly 850 organizations representing more than 134,000 individual APPs and over 4,700 APP leaders.
About SullivanCotter
SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improves outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, and data products to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision, and values.
For more information on SullivanCotter’s surveys, please visit our website at www.sullivancotter.com, or contact us via email or by phone at 888.739.7039.
Note to media: Additional data and interviews are available on request.
