Nonprofit health system Advocate Health will invest an additional $1.24 billion in its workforce beginning in 2027, with approximately $846 million dedicated towards compensation and $390 million towards incremental benefits.
Advocate will increase its minimum wage to $20 an hour, building on its $18.85 per hour minimum wage established this year.
For a 40-hour workweek, that wage would pay over $26,520 more per year than the federal minimum wage, it said.
Compensation investments will also include merit increases, incentives, pay-range updates and other investments in pay, executives said in the Nov. 5 announcement.
“The most important investment we make isn’t in buildings, technology or equipment. It’s in our people,” said Eugene A. Woods, Advocate Health CEO, in a statement. “Healthcare is a 24/7 calling and every single day our 170,000 teammates bring extraordinary skill, compassion and commitment to the patients and communities we serve. Their dedication is what brings our purpose to life for the millions of people who count on us each year.”
The country’s third-largest nonprofit health system currently covers approximately 83% of employee medical costs, and plans to invest an additional $138 million for what it says will absorb “more than 90% of the projected $149 million increase in medical plan costs.”
Moreover, the health system’s 2027 benefits package extends fully paid parental bonding leave to four weeks enterprise-wide; expands paid bereavement leave; continues coverage for GLP-1 medications for weight loss; provides no-cost mental health support for employees and family members; continues sustained retirement contributions of up to 6% of eligible pay and offers education assistance across more than 1,300 eligible programs.
The package also offers student loan repayment assistance, with with lifetime support of up to $21,000 for eligible full-time employees and $10,500 for eligible part-time employees.
“The benefits that matter most are the ones that make a real difference in people’s lives,” said Nakesha Lopez, Advocate Health senior executive vice president and chief people and culture officer, in a statement. “We want our benefits to reflect what teammates need at different stages of their lives, while keeping affordability at the forefront and providing meaningful support for their health, families and financial futures.”