Medical practices are planning smaller 2027 staff raises than last year, even as inflation exceeds most planned increases.

A Nov. 10, 2026, MGMA Stat poll asked practice leaders about their average planned base pay increase for staff in 2027. Most (72%) said 1% to 3%; 19% chose 4% to 6%, 9% no increase, then 1% reported 7% or more. The poll drew 265 applicable responses.

For context, MGMA asked a similar question about 2026 budgets in the Sept. 9, 2025, poll, two months earlier in the budgeting cycle:

The share budgeting 4% or more fell from 24% to 19%, while the share planning increases of 1% to 3% rose from 64% to 72%. Two years ago, 35% of practices told MGMA they planned higher-than-usual 2025 raises, with median increases of 4.5% for front-desk staff and 5.5% for medical assistants (MAs).

Respondents budgeting raises identified roles slated for the biggest increases and other approaches they plan to use:

• In comments from the 4% to 6% group, 43% named MAs, none named advanced practice providers (APPs), and 38% described the same percentage for all staff. Respondents budgeting 7% or more named MAs, billing staff and advanced practice nurses.
• In comments from the 1% to 3% group, APPs led mentions (21%), followed by MAs (16%) and front-desk staff (14%). About 4 in 10 APP mentions involved bonuses or incentives, such as a "restructured bonus for APPs," rather than a higher base raise. Overall, 26% of comments in that tier said all roles would receive the same percentage.

Bonuses appeared in 28% of comments in the 1% to 3% tier, and merit or performance-based increases in 21%. Examples included year-end bonuses for all staff, a merit bonus of 0% to 2% of pay every six months, MA onboarding bonuses and market adjustments for employees paid below local rates. "Individuals falling below market will get any additional increase to bring them to market levels," one respondent wrote.

Among practices budgeting no base increase, no comments mentioned merit pools or one-time bonuses. Nearly two-thirds cited flexible schedules or time off, such as four 10-hour days; almost half mentioned benefits, including fully paid employee health insurance premiums. In last year's poll, most practices planning no raises described wage freezes without alternatives.

How 2027 plans compare with MGMA pay benchmarks

The 2026 MGMA DataDive Management and Staff Compensation data report, based on more than 215,300 professionals in more than 4,100 groups, found that median total compensation fell in 10 of 18 core roles in 2025.

For two roles cited frequently in the poll, median total compensation rose 4.8% for medical receptionists and 4.3% for MAs; both are up more than 20% over five years. These total-compensation gains are not directly comparable with budgeted base raises.

The report also found that 56% of practices said MA hiring had become harder over the past year, versus 7% who said it had become easier. It warned against assuming hiring pressures will ease in 2027.

MGMA benchmarks show MAs with 21 or more years of experience earn just 5.3% more than those with five or fewer. Uniform increases preserve that narrow gap.

Inflation and hiring conditions shape staff expectations

Practice budgets broadly match employer plans elsewhere. A July 2026 Mercer survey of 1,001 U.S. organizations projected average 2027 merit increases of 3.2% and total salary increases of 3.5%. Healthcare's 3.0% merit budget ranked among the lowest of 15 industries. WTW projected 3.4%.

Inflation may erode those raises. Consumer prices rose 3.7% for the 12 months ending in September, up from 3.4% in August; energy prices rose 20.4%. Prices increased another 0.4% in October (month over month). The Employment Cost Index shows wages and salaries rose 3.1% in the year ending in September, a 0.6% decline after inflation.

Consumers also expect the squeeze to continue. Households in the Federal Reserve Bank of New York's October Survey of Consumer Expectations expected 3.9% inflation over the next year, the highest since 2023. They projected 2.6% earnings growth and 5.3% spending growth.

Unemployment stood at 4.1% in October and remained between 4.1% and 4.3% since March. Healthcare added 42,000 jobs in October and averaged 31,000 monthly over the prior year, versus 48,000 per month across all U.S. sectors. Hospitals accounted for 16,000 of October's healthcare jobs and compete with medical groups for many nurses and support staff.

The Philadelphia Fed's third-quarter Survey of Professional Forecasters forecast average unemployment of 4.3% and inflation of 2.3% in 2027. That August forecast preceded September's energy-driven price increase.

Making a limited pay budget work

Practices face limits outside their control. One respondent wrote that 2027 increases will "depend on how bad these new Medicare cuts are going to affect the practice." The 2027 Medicare Physician Fee Schedule final rule, released Nov. 4, cuts the conversion factor 2.31% for most clinicians, and MGMA has called on Congress to fix it.

Within those limits, four steps can help practices allocate pay dollars:

1. Target raises to hard-to-fill roles. A 3% average budget can fund larger increases for MAs and front-desk staff if easier-to-fill roles receive less. Compare pay ranges with current local job postings.
2. Reserve funds for off-cycle adjustments. Mercer found that 64% of employers have provided or plan to provide off-cycle salary adjustments in 2027.
3. Separate bonuses from base raises. A year-end bonus helps this year's household budget but does not change next year's hourly rate, which employees compare with posted wages.
4. Show employees the value of benefits. BLS found that benefit costs rose 3.9% in the year ending in September, faster than wages. When raises are limited, explain the value of flexible schedules and fully paid premiums.

With more than 8 in 10 practices budgeting 3% or less, watch MA and front-desk vacancies in early 2027. If openings stay unfilled, midyear pay adjustments may be needed.

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