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Wages in for-profit and nonprofit private hospitals

July 01, 2005

A study of data from the July 2003 National Compensation Survey shows that the average hourly rate for all workers in for-profit hospitals, $19.26, was lower than the average hourly rate for all workers in nonprofit hospitals, $20.16.

Average hourly earnings in private hospitals, by for-profit or nonprofit status, 2003
[Chart data—TXT]

Full-time workers in for-profit hospitals also had a lower average hourly rate than their not-for-profit counterparts, but part-time workers in for-profit and nonprofit hospitals had nearly identical average hourly rates.

The lower average wage rate in for-profit hospitals may be due to the fact that the for-profit hospitals were smaller than the hospitals classified as nonprofit. Of the private for-profit hospitals studied, only 13 percent employed more than 2,500 workers. But of the private nonprofit hospitals studied, 28 percent had more than 2,500 workers.

These data are from the BLS National Compensation Survey. For more information, see "Wages in Profit and Nonprofit Hospitals and Universities," by Karen P. Shahpoori and James Smith, in the June 2005 issue of Compensation and Working Conditions Online.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Wages in for-profit and nonprofit private hospitals on the Internet at https://www.bls.gov/opub/ted/2005/jun/wk4/art05.htm (visited August 11, 2020).

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