Trends in Wages and Costs Across Healthcare: Overview and Future Trends

Published in Member Communities on June 25, 2025

By Tyler Coulander, Market Strategy Manager, VGM & Associates

In the ever-evolving landscape of healthcare, understanding the trends in wages and costs is crucial for both professionals and organizations. Over the past five years, significant changes have been observed in various roles within the healthcare industry. This research provides an overview of these changes and offers projections for the future based on data made available through the United States Bureau of Labor Statistics. The United States Bureau of Labor Statistics reports that compensation costs for civilian workers increased nearly 4%¹ from September 2023 to September 2024. Companies in healthcare and other industries within the U.S. continue to battle inflation, workforce shortages, and increasing wages that directly affect the overall operational costs.

Respiratory Therapists

According to the latest Bureau of Labor Statistics data, the median annual wage for respiratory therapists has seen a substantial increase, rising from $61,330 in 2018 to $77,960 in 2023. This significant rise can be attributed to the increased demand for respiratory care, especially during the COVID-19 pandemic. Looking ahead, wages are expected to continue rising, driven by an aging population and ongoing healthcare needs. On average over the next decade, there will be 8,200 openings for respiratory therapists each year. This is due to the need to replace those that leave the profession for other opportunities or exit the workforce and retire. The job outlook projects a 13% growth from 2023 to 2033². The successful recruitment and retention of skilled respiratory therapists will be critical moving forward for several healthcare industry stakeholders.

Medical Billing Professionals

The median annual wage for medical billing professionals has also experienced growth, increasing from $40,350 in 2018 to $48,780 in 2023³. This rise is due to the growing complexity of healthcare billing and coding systems. Future projections indicate that wages will keep increasing as the healthcare industry continues to expand and the demand for accurate medical billing and coding grows⁴.

Delivery Staff

For delivery staff, the median annual wage increased from $30,580 in 2018 to $35,420 in 2023⁵. This rise is largely due to the surge in e-commerce and home delivery services. As the demand for delivery services remains high, wages are likely to continue rising.

Customer Service Representatives

Customer service representatives have seen their median annual wage increase from $33,750 in 2018 to $39,680 in 2023⁶. This growth is driven by the need for skilled customer service in various healthcare industries. Despite a projected decline in employment, wages may continue to rise due to the increasing complexity of customer service roles and the need for specialized skills.

Freight/Transportation Costs

FedEx and UPS have increased 2025 rates by 5.9%, which significantly impacts overall expenses in this category⁷. It’s important to note that the actual cost increases will likely be even higher due to additional surcharges and various shipping characteristics. Furthermore, the annual average cost of gas has seen a substantial rise, climbing from $2.19 per gallon in 2020 to an average of $3.35 per gallon in 2024⁸.

These escalating costs underscore the need for businesses to find innovative ways to manage expenses while maintaining quality care and services.

General Economic Inflation

The Consumer Price Index (CPI) is a crucial economic indicator that measures the average change over time in prices paid by urban consumers for goods and services. The Centers for Medicare & Medicaid Services (CMS) uses the CPI to adjust reimbursement rates for DMEPOS. It is important to note that as the CPI rises, other costs like raw materials, manufacturing, and distribution of products also rise. For the 12 months ended January 2025, the annual inflation rate in the United States was 3% and the CPI for urban consumers rose by 0.5% in January 20259. General economic inflation is a key indicator to understand potential affects on the cost of medical supplies, equipment, and services’ contribution to the overall cost of healthcare increasing.

Conclusion

Despite the rising costs in wages and operational expenses, it is crucial for providers to focus on scalability and efficiencies to ensure long-term sustainability and quality care. As the demand for healthcare services continues to grow, driven by an aging population and increasing healthcare needs, businesses must find innovative ways to optimize their operations. This includes leveraging technology to streamline processes, adopting data-driven decision making to enhance resource allocation, and investing in workforce development to improve productivity.

References

¹Compensation costs up 3.9 percent from September 2023 to September 2024: The Economics Daily: U.S. Bureau of Labor Statistics

²Respiratory Therapists - U.S. Bureau of Labor Statistics

³Medical Billing And Coding Salary By State – 2025 - NursingProcess.org

⁴Medical Records Specialists Reach Higher Ground in Healthcare

⁵Delivery Truck Drivers and Driver/Sales Workers : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics

⁶Customer Service Representatives - U.S. Bureau of Labor Statistics

⁷UPS prepares 5.9% rate increase starting at peak season’s end | Supply Chain Dive

⁸Gas prices US | Weekly gas price averages: 20182024 | Finder

⁹CPI Home: U.S. Bureau of Labor Statistics

READ THE FULL ARTICLE HERE

This article was originally featured in the VGM Playbook: Cost Management Trends, Strategies, and Solutions. To read the full article and more like this, download your copy of the playbook today! 

TAGS

1. hme
2. playbook
3. vgm