The potential cost for filling a physician position can top $500,000 when accounting for loss in potential billings and the money needed to recruit to that position, according to a March 4 AMN Healthcare white paper.
“The Cost of Physician Turnover and the Economic Impact of Physicians” analyzed the costs of physician turnover, quantified revenue loss and highlighted economic contributions of physicians.
1. The annual average for revenue-generated potential across 18 specialties is $3.8 million, according to an AMN Healthcare’s 2023 Physician Billing Report. This number would be larger if government payers such as Medicare were included in the data, according to the report.
2. The monthly opportunity cost of an open physician position caused by turnover or other reasons can be substantial. Here are the potential lost billings per month in four specialties:
- Orthopedic surgery: $817,459
- Urology: $490,500
- Otolaryngology: $349,000
- Cardiology: $283,333
3. The cost in lost finances invested to recruit a physician, along with the loss in potential billings per month, can drive the potential cost of one physician search to more than $500,000.
4. Each year, physicians handle approximately 1.3 billion patient encounters in medical offices and hospital emergency departments, at a rate of 4.3 physician visits per person, the CDC said.
5. Open physician spots can also impact the economics of the community. An office-based physician on average supports about 17 jobs and pays a total of $1.4 million in wages and benefits. They also provide an average of $126,129 in local and state tax revenue.
