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Jump to Key Points There’s no shortage of discussions about how the economy affects the healthcare industry. Most of those center on how Americans will find the means to cover insurance and routine care. America’s current affordability crisis, however, does not only affect patients. Healthcare workers, including physician associations (PAs) are also feeling the brunt of increasing costs for groceries, gas, utilities, daycare, and housing. While PA students are often told their hard work will allow them to earn a six-figure salary upon graduation, current economic conditions mean that some PAs will still feel the financial squeeze.
“PA salaries are increasing. But it’s becoming harder to keep up with day-to-day expenses,” said Dane Thomas, PA-C, MMS, a PA who specializes hematology and oncology. “I see a lot of younger PAs who come out school with a lot of student loans. The current economy just makes it that much harder for them to keep up with the general cost of living and aggressively pay down that debt.”
About Medscape Insights
Medscape continually surveys physicians and other medical professionals about key practice challenges and current issues, creating high-impact analyses. For example, theMedscape Physician Wealth & Debt Report 2026 echoed PAs concerns that:
- Doctors worry about inflation more than they worry about US financial markets or interest rates.
- Physicians agreed that reimbursements must keep up with inflation.
- 8% of physicians surveyed felt their family was managing their finances poorly or very poorly in this economic climate.
Rising Costs and Rising Salaries
There’s no doubt that costs across most major economic categories are on the rise. According to the US Bureau of Labor Statistics (BLS), the average American has seen an average increase in costs of 2.7% across all categories. But other costs have jumped even higher. BLS clocked an increase of 3.1% for food (with food eaten out even higher at 4.1%), 6.7% for electricity, and 3.2% for shelter. Childcare, too, has gotten more expensive, with the New York Times reporting that parents have seen an increase of more than 5% over the past year. One PA, Cara, who asked to be referred to by only her first name because she is currently seeking a new position, said she feels like she must rework her budget every few months to keep up.
“I know that everyone, no matter what field they work in, is experiencing higher costs right now,” she said. “Every time I turn around, it seems like my utilities are higher, or my rent is going to go up, and I have to figure out how to make that work. It shows you can still make a pretty great salary and still have to watch every penny.”
The good news is that PA compensation is also rising. Per the American Academy of Physician Associations (AAPA)’s annual salary report, median PA compensation also rose between from $134,000 to $140,000 between 2024 and 2025 — a notable 4.5% increase. In contrast, BLS found that average nurse practitioner salary increased from $132,300 to $137,300, which represents about a 4% jump. And doctors saw only a 3% pay bump for the same period.
Thanks to their generalist education and clinical expertise, both salaries and the number of jobs across the country for PAs continue to be on the rise. Yet David J. Bunnell, PhD, PA-C, DFAAPA, president and chair of AAPA, agreed that PAs are not immune to the economic pressures that affect families across the country.
“We see those pressures reflected in the health of the patients and the communities we serve every day,” he said. “The PA profession remains strong and continues to grow, but economic conditions still shape access to care and health outcomes.”
More Pay, but More Responsibilities
While PA salaries are growing, Thomas said that he and his colleagues have noticed an increase in their administrative duties — without any additional compensation. As more private equity firms purchase practices, he said, they are looking closely at profit margins which translates into looking for ways to make employees do more for less.
“This is something we see with all providers. On top of the clinical work we have to do, we are being inundated with more paperwork, like prior authorizations and other administrative work,” he explained. “There’s no increase in pay commensurate with the amounts of tasks you are expected to perform — and it feels like there’s more added all the time. It’s definitely a frustration.”
Thomas added that, thanks to the economy, the clinical work he and fellow PAs perform is also increasing in complexity. Because patients are also being hard hit by changes in the economy, it affects whether they will adhere to prescribed medications or even come in for standard care.
“We see that patients have to pick between coming in for a wellness check or paying their monthly utilities,” he said. “It means that a lot of patients are delaying care. That not only costs them more in the long run but it also means that they aren’t coming in until things have become really serious. So in addition to the extra administrative work, we are also dealing with much more complex cases that are more challenging to manage.”
Future Uncertainties
With the high cost of PA school — and continued uncertainty about federal school loan programs — Thomas worries that future PAs may be even harder hit by increased costs.
“A lot of times the younger PAs see the six-figure salary and think they can easily cover higher loan payments or other costs. But a six-figure salary does not mean that six figures are going into the bank,” he said. “You don’t necessarily register what your financial picture is going to look like until you actually start working.”
He hopes that more practices will adopt value-based models of care to help PAs have more time — and adequate reimbursement — as they care for complex patients. He also hopes that PA schools offer their students some education on financial readiness, so they are better prepared to deal with an ever-changing economy once they enter the workforce.
“If we can find ways to help students understand their finances, how to save for the long-term, and manage money, they would be in a better position to weather price increases,” he said. “That’s something we could do now to help students make the most of their salaries in the future no matter what’s going on in the economy.”
The experts cited in this article had no relevant disclosures.
Kayt Sukel is a healthcare and science writer based outside Houston.
