As previously reported in JUCM News, California is set to raise minimum wages for healthcare workers to $25—and that specifically includes urgent care employees. The new minimum wage law was signed by Gov. Gavin Newsom last week, and it allows pay hikes to phase in over time, beginning in June 2024 at $21 per hour, then rising to $22 per hour starting in June 2026, finally reaching $25 per hour in June 2027. Some organizations can apply for a short-term hiatus or alternative ramp-up schedule if they can prove financial distress. About 455,000 healthcare workers across the state in all types of care settings each stand to gain about $10,352 annually, according to Becker’s Hospital Review.
Here are ripple effects: “The problem is that health insurance reimbursement for urgent care and primary care isn’t keeping pace with this rapid wage inflation, especially with Medicaid payers,” says Alan Ayers, MBA, MAcc, president of Experity Networks and Practice Management Editor of JUCM. “Healthcare access will necessarily be reduced as the only providers who will be able to afford the wages may be big, high-volume institutions who soak payers with facility fees.”