As physicians grapple with the rising cost of practicing medicine in the face of reimbursement cuts, they are having to deal with soaring labor costs.
From receptionists to license practical nurses (LPNs) and medical assistants, jobs in doctor practices and medical groups have seen pay increases of between 15% and 30% over the last five years, an analysis from the Medical Group Management Association shows.
This trend comes as medical groups and hospitals use more allied health professionals and others to fill care gabs amid an ongoing physician shortage. The Association of American Medical Colleges says the United States will face a physician shortage of up to 86,000 physicians by 2036.
“Practices are in a phase where labor costs aren’t falling in a meaningful way, even as wage growth slows,” Akash Madiah, acting CEO of MGMA said. “The challenge isn’t just what staff are paid, it’s how difficult those roles are to fill and how much pressure that puts on the rest of the team. That’s why so many organizations are pairing compensation strategies with automation and workflow changes to make the workforce they have more sustainable.”
The MGMA analysis shows a “labor equation” that is more complicated than doctor practices and medical groups have seen in years, Madiah says.
“Even as pay growth slows, the underlying pressure to recruit and retain staff hasn’t eased, especially in roles that are essential to keeping patients moving through the system,” Madiah says. “That’s forcing leaders to think beyond wages alone. They’re looking at workload, role design, and technology as part of a broader strategy to make their workforce sustainable.”
Here’s a look at key staff roles and how their compensation has grown over the last five years:
- Medical receptionist median total compensation rose 22.0%, from $36,529 in 2021 to $44,569 in 2025.
- Medical assistants rose 20.6%, from $39,339 to $47,440.
- LPNs rose 29.7%, from $46,592 to $60,438.
- Triage nurses rose 15.3%, from $66,934 to $77,196.