Stroudwater Associates Unveils 2024 Report on Rural Provider Compensation Challenges
Stroudwater Associates Unveils 2024 Report on Rural Provider Compensation Challenges
Stroudwater Associates, a leading consultancy in operational, clinical, and financial strategies for rural healthcare, recently published its 2024 Rural Provider Compensation Report in collaboration with the National Rural Health Association (NRHA) and the National Organization of State Offices of Rural Health (NOSORH). This report reveals significant disparities in provider compensation across various rural healthcare organizations, emphasizing the urgent need for alignment with organizational goals to ensure financial sustainability and compliance.
The survey gathered data from 199 respondents across 42 states, representing over 2,841 full-time healthcare providers. Key findings indicate the pressing challenges faced by rural hospitals in their compensation strategies, particularly as they struggle to align pay structures with operational goals. According to Opal H. Greenway, J.D., M.B.A., C.V.A., the survey results highlight the distinct financial dynamics present in rural settings compared to urban and suburban areas, which can greatly impact provider retention and recruitment efforts.
Major Findings from the Compensation Survey
The report sheds light on various compensation trends, including:
1. Incentive Structures: A significant 54.7% of surveyed organizations pay providers a straightforward salary without any performance or quality-based incentives. While this marks a slight decrease from the previous year, the trend raises questions about motivating healthcare professionals in rural settings.
2. Salary Variability: The report reveals that median compensation for family medicine physicians without obstetrical duties stands at nearly $260,000. However, total compensation can fluctuate dramatically, with some providers earning between $179,500 to $420,874.
3. Medicare Fee Structure Awareness: An alarming finding showed that more than half of the surveyed organizations lacked knowledge about which Medicare physician fee schedule they were using. Only 36.8% utilized the most recent schedule, raising concerns about the potential for lost revenue due to outdated practices.
4. Comparison of CRNA Salaries: The report notes a stark increase in compensation for Certified Registered Nurse Anesthetists (CRNAs), which has surged beyond inflation rates. Their pre-pandemic salaries ranged from $150,000 to $180,000, but have now grown to a median of over $251,500.
Alan Morgan, CEO of NRHA, emphasizes the significance of understanding the unique compensation needs of rural healthcare providers for the future of rural hospitals. He states, “This survey serves as a cornerstone in our mission to secure the future of rural hospitals.”
Next Steps for Rural Healthcare Organizations
Stroudwater Associates aims to update this survey annually and encourages rural organizations to participate in the upcoming 2025 survey. This ongoing evaluation is pivotal for providing essential information that can enhance compensation strategies and improve recruitment and retention in rural health settings.
For those interested, the complete 2024 Rural Provider Compensation Report can be downloaded for further insights.
Stroudwater Associates, founded in 1985 and headquartered in Portland, Maine, continues to be a vital resource for rural healthcare systems, aiming to improve their operational, clinical, and financial outcomes through detailed analyses and strategic support. The organization has made it their mission to ensure healthcare access and quality for rural populations across the United States.
Topics Health）
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