Three health systems have raised their minimum wage in 2026 as part of broader workplace investments.
The moves come as health system leaders intensify their focus on retention and engagement. Organizations are balancing these priorities as financial pressure persists across the sector.
In January, Baton Rouge, La.-based FMOL Health shared plans to raise its minimum wage to $15 per hour and implement a systemwide market compensation adjustment.
The same week, Charlotte, N.C.-based Advocate Health announced $776 million in workplace compensation investments in 2026, including implementing a $18.85 minimum starting wage across its six-state footprint. The changes were reflected on Jan. 30 paychecks.
On March 4, Durham, N.C.-based Duke University and Duke University Health System said they would raise their minimum wage to $20 per hour, effective July 1. More than 4,000 employees will receive a direct pay increase under the change.
The increases come as broader wage pressures mount across the healthcare industry. California legislation will raise the minimum wage for healthcare workers to $25 an hour, phased in over three years.
Healthcare organizations are also facing rising labor expenses and competition for workers. Labor expenses per calendar day grew 5% from 2024 to 2025 and 12% since 2022, according to a Kaufman Hall report.
At the same time, workforce instability remains a major concern: One in 4 healthcare workers has said they are considering leaving the industry.
For FMOL Health, the decision to increase its minimum wage followed employee feedback and a review of compensation data, President and CEO E.J. Kuiper told Becker’s in February.
“We believe that when the workforce is fully engaged, other metrics — patient satisfaction, quality, brand equity, market share and financials — will follow,” he said. “If you focus too much on lagging indicators, you risk losing your people. Every day, we ask how we can create the best place to work and the best place to practice medicine. That’s what we focus on.”
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