One of Charlotte’s largest employers is preparing to pour another $1.24 billion into employee pay and benefits next year.
Charlotte-based Advocate Health announced the systemwide investment this week. It includes a $20 minimum starting wage, four weeks of paid parental leave and expanded health benefits.
“The most important investment we make isn’t in buildings, technology or equipment. It’s in our people,” said Eugene A. Woods, chief executive officer of Advocate Health in a press release. “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 company operates Atrium Health across the Carolinas and employs about 35,000 people in the Charlotte region. Advocate Health is also the nation’s third-largest nonprofit health system.
Of the new investment, about $846 million will go toward compensation.
Advocate is raising its minimum starting wage from $18.85 to $20 per hour in 2027. The increase will combine with targeted pay adjustments affecting roughly 40,000 patient-facing workers across the system.
The compensation investment also includes merit raises, incentives and updated pay ranges.
Another $390 million will go toward employee benefits.
Advocate will begin offering four weeks of fully paid parental bonding leave. If both parents work for the health system, each eligible employee can receive the benefit.
The company is also spending another $138 million to offset rising health insurance costs. Advocate says that will cover more than 90% of a projected $149 million increase in medical plan expenses.
Deductibles, coinsurance and out-of-pocket maximums are expected to remain unchanged. Premiums will stay flat for some workers and see limited increases for others.
Advocate will also continue covering eligible GLP-1 weight-loss medications, retirement contributions of up to 6%, education assistance and student loan repayment programs.
