Physician recruitment and retention plays a pivotal role in the success and stability of medical practices. The consequences of physician turnover extend far beyond the departure of a team member; they reverberate through the financial health, patient satisfaction, and overall efficacy of your healthcare organization.  

Between 2010 and 2018, the physician turnover rate increased by 48% with hospitalists contributing the highest moving rate. According to one study, the estimated cost for hospitalist physician turnover was $6000+ per incoming physician. While Hospital Medicine turnover is the most frequent, the cost is substantially lower than in non-hospitalist specialties. Additionally, younger and rural physicians tend to move the most while retiring physicians also contribute a large segment of turnover. 

Physician turnover is a multifaceted challenge that encompasses direct and indirect costs. To put these costs into context, delve into the various dimensions associated with losing a physician: 

Revenue and Productivity Loss 

The departure creates a void in your medical team, leading to a temporary reduction in overall productivity. The loss of productivity results in a loss of revenue, the significance of which will depend on the type of specialty. Interventional Cardiologists and Orthopedic Surgeons generate the most revenue thus, their vacancies will impact your bottom line more than other specialties. Financial impact also depends on how long it takes to replace the physician. While it takes an average of 4 months to fill a Family Medicine position, it can take double the time to fill a specialist role, compounding your financial loss. 

Interviewing Expenses 

The process of replacing a departed physician involves extensive interviewing and these costs accumulate quickly, roughly $30,000 per candidate, and range from travel expenses to Human Resources time investment. 

Hiring, Onboarding, and Training the New Hire 

If you offer relocation costs, student loan repayment, signing bonuses, or medical malpractice insurance coverage to entice top talent, those expenses can add up quickly. Once a new physician is hired, substantial resources are invested in their onboarding and training as well. From orientation programs to shadowing staff, the initial phase of integration demands a significant amount of time from your existing staff members.   

Impact on Patient Care 

Physician turnover can disrupt the continuity of care for patients, leading to potential dissatisfaction and decreased patient loyalty. Decreased patient appointments, longer waiting times, and a potential decline in the quality of patient care are some of the biggest obstacles in physician turnover. These outcomes can affect the quality metrics of your healthcare practice, potentially leading to a decline in patient satisfaction scores and a tarnished reputation in the community. 

Reduced Employee Morale 

High turnover rates can have a demoralizing effect on the remaining staff. The constant flux of team members can create uncertainty and stress, negatively impacting the workplace culture and overall employee satisfaction. Longer shifts to cover the vacancy left for months on end can lead to physician burnout and subsequently more turnover. 

Reducing Physician Turnover 

Understanding the multifaceted costs associated with physician turnover is the first step toward effective mitigation but there are other strategies you can enact to ensure your turnover rates remain low:  

Time and Resources for Succession Planning 

Proactive succession planning becomes essential in the face of turnover. Allocating time and resources to identify and groom potential successors is a critical yet often overlooked opportunity to save your practice costs during a transition. 

Making the Right Hires 

Hiring top candidates with a long-term commitment to your practice and your community will lessen the rotation of physicians on your staff. Before embarking on rounds of interviews, strategize how you appeal to the right physicians who will become an essential component of your team. If you opt to get recruiting assistance from an outside firm, vet consultants with these questions before adding them to your recruiting tool kit.  

Retaining Staff by Maintaining Healthy Relationships 

Engage your team by creating a physician retention committee that allows physicians. The committee can help you determine why there is turnover and survey the existing staff to find issues and improvements.  

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