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Premium Pay Practices for Health Care Providers


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The category of expense for healthcare providers that is gathering major attention is Premium Pay Practices (PPPs) which is a vital component of employees’ total cash compensation. The four major drivers or service requirements for premium pay are: rates, hours/utilization, eligibility and governance. With PPPs impacting bottom line and competitive position, providers are continuously finding ways to identify the corresponding drivers of PPPs utilization and cost.

Deloitte LLP’s Premium Pay Practices is a report on magnitude of the impact that these PPPs may have on a healthcare provider organization’s bottom line. According to the study premium pay elements account for 3.1 percent of a provider’s Gross Earnings. For large systems with multiple locations and acute care facilities with 24/7 operations it may even go up to 5 to 10 percent of their gross earnings. Additionally, it discusses the challenges faced by organizations and how to get the premium pay practices under control. Please note that throughout the survey Premium Pay is termed as “Supplemental Pay” which includes overtime, bonuses and shift differentials.

Download the report to learn more.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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