Unionization in the hospital industry: how are wages affected?

With the enactment of the 1974 amendments to the National Labor Relations Act, employees in not-for-profit hospitals have more freedom to organize, form unions, and bargain collectively. As a result, union activity in the hospital field has greatly increased in the last 10 years. How does unionization affect hospital wages and ultimately healthcare costs? Studies indicate an approximately 8.8 percent wage increase in hospital occupations as a whole, resulting from collective bargaining in hospitals. If unionization can affect hospital wages to this extent, financial managers must be aware of the possible implications for their organizations.