Paying employees using 2023 dollar values is no longer sustainable in today’s healthcare economy. Across the Kansas City healthcare market, conversations about compensation tend to surface quietly. Pay using 2023 dollar values is no longer sustainable in today’s healthcare economy. They are rarely emotional and almost never confrontational. Instead, they reflect a practical question shared by both employers and professionals:
Does today’s pay still align with today’s costs?
This question appears most often among hourly healthcare employees, where pay structures can remain unchanged for extended periods. In many hourly environments, formal review cycles are less defined, and adjustments may lag even as economic conditions shift.
For those who want to see how current hourly pay compares across common healthcare roles in the Kansas City metro, we’ve compiled a reference guide based on Bureau of Labor Statistics data and regional market audits.
View the 2026 Kansas City Healthcare Hourly Pay Guide (PDF)
This is not a matter of intent.
It is a matter of alignment.
Why Pay Using 2023 Dollar Values Loses Its Value Over Time
When wages remain flat while the cost of living rises, the issue is not that compensation is incorrect. The issue is that the value of that compensation erodes over time.
Purchasing power declines gradually. The same paycheck arrives, but it covers less than it once did. Housing, food, transportation, insurance, and healthcare costs rise incrementally, often without a single defining moment that triggers action.
This change is easy to miss in the short term.
Over time, it becomes unavoidable.
This is not a performance issue.
It is an economic reality.
Why Cost-of-Living Adjustments Matter
A 2.8% cost-of-living adjustment is widely viewed as a practical baseline for maintaining wage relevance. It is important to be clear about what this represents.
A COLA is not a raise.
It is not a reward.
It does not improve lifestyle.
Its purpose is to help compensation retain its original purchasing power.
When wages are not reviewed periodically through this lens, long-tenured hourly employees may gradually fall behind without realizing it. Employers, meanwhile, may be working from compensation frameworks that no longer reflect current market conditions.
Neither outcome is intentional.
Neither is sustainable.
The Employer Side of the Equation
Compensation conversations are often more complex than they appear on the surface.
Employers do not budget for wages alone. They also manage rising costs tied to healthcare benefits, paid time off, payroll taxes, insurance, and regulatory compliance. These costs have increased steadily over the past decade and are very real considerations in workforce planning.
From an accounting perspective, employee wages remain a core part of the compensation line item, and cost-of-living adjustments typically belong here as well. At the same time, total employer cost per employee may rise even in years when base wages remain unchanged.
That distinction matters.
For employees, compensation is experienced almost entirely through take-home pay. When benefit costs rise but wages do not adjust, the employer’s cost may increase while the employee’s purchasing power continues to decline. This disconnect can quietly strain understanding on both sides if it is not addressed thoughtfully.
Why This Disparity Shows Up More in Hourly Roles
Hourly pay structures vary widely across healthcare settings. In many environments, there is no formal mechanism that prompts regular wage review. Where union representation does not exist, there is often no structured process to renegotiate wages or apply routine cost-of-living adjustments.
As a result, hourly compensation can lag even in well-run organizations with positive intent. This is not unique to healthcare, but healthcare often feels the impact sooner due to workforce shortages, regulatory pressures, and rising operational costs.
The Role of Market Data
In the absence of formal review structures, objective labor data becomes especially important.
Wage benchmarks published by the Bureau of Labor Statistics provide a neutral, accessible reference point for both employers and employees. Used correctly, this data is not a negotiating tactic. It is a context tool that helps ground compensation discussions in facts rather than assumptions.
Market data supports clearer planning, more productive conversations, and better long-term decision-making.
How Pay Using 2023 Dollar Values Affects Long-Term Sustainability
Healthcare employers and healthcare professionals ultimately share the same goal: stability.
For employers, sustainability means managing total employment costs responsibly while remaining competitive and retaining experienced team members. For professionals, it means earning wages that reflect current economic conditions and support long-term career decisions.
Rising benefit costs are a reality of today’s healthcare environment.
Leaving wage value behind is not the solution.
Sustainable compensation practices consider both sides of the equation — total employer cost and real employee purchasing power — and recognize that alignment benefits everyone.
Why Pay Using 2023 Dollar Values No Longer Works
This conversation does not require sides.
Organizations that make time for periodic compensation discussions, even incremental ones, tend to build stronger trust and reduce friction over time. Professionals who understand how pay aligns with the broader market are better equipped to engage thoughtfully and realistically.
Healthcare continues to face staffing shortages, reimbursement pressure, and rising operational costs. At the same time, professionals are more aware than ever of how compensation aligns with real-world expenses. When pay structures are not reviewed periodically, gaps can form without intention.
Addressing the implications of pay using 2023 dollar values does not require sweeping changes. It starts with awareness, data, and conversation. Employers who approach compensation with transparency and context tend to create stronger alignment, even when adjustments must be incremental.
This approach supports planning, trust, and long-term sustainability. When organizations rely on pay using 2023 dollar values, misalignment grows slowly but predictably over time.
Paying today’s workforce with 2023 dollar values may feel manageable in the short term. Over time, however, it creates misalignment that neither employers nor employees intend.
Alignment — not blame — is the goal.
