Did you know that 75 percent of medical groups don’t quantify the cost of turnover? This means they have no idea how much turnover impacts their bottom lines, especially when they have to hire several new physicians each year.
Here are just a few hidden costs you face when employees leave:
Advertising
Paying for print or online ads, listing your jobs with third-party sites like Monster or Indeed, and even promoting job posts on social media can quickly add up.
Recruiting and interviewing
It can take up to eight months to get a physician on board, which means months of creating job descriptions, sifting through CVs, calling references, scheduling appointments, conducting phone and in-person interviews, and eventually putting a contract together and extending an offer. The estimated annual recruiting cost for a full-time employee is $61,000.
Loss of revenue
When you lose a physician, you also lose the revenue generated by that physician — on average around $990,000 a year. In a recent study, 74 percent of medical groups said they would hire more primary care physicians in the next year than they had the previous year. While you’re waiting to fill gaps, you’re losing millions in revenue you would have otherwise.
Relocation and travel costs
You’ll probably be paying several thousand dollars just to fly physicians to your facility for in-person interviews. If a doctor accepts your offer, you’ll need to help him or her relocate as well. Travel and relocation costs, along with advertising, search agency fees, recruiter costs and employee referral bonuses, make up 90 percent of hiring expenses.
Onboarding and training
Once you’ve hired a physician, it takes time and money to onboard him and get him up to speed. Training can be costly and keeps other physicians and healthcare providers away from their jobs. It can take up to two years for a new physician to be fully integrated in his job and able to take on the same workload as an established staff member. The average annual start-up cost for a new doctor is $211,000.
Learn more about the costs of physician turnover in the infographic below — or download the PDF.
