Recruiting and Retaining Providers Part One – Maximizing Utility for Doctors Who Choose Employment
8 Minute ReadHello, valued readers!
This is the first part of a multi-part blog post on the topic of recruiting and retaining providers. Part One is about maximizing the benefits for doctors who choose employment in your healthcare organization rather than opening their own clinic. Part Two will focus more on structuring employment agreements to incentivize and compensate your medical providers appropriately. The insights and strategies shared here are designed to empower healthcare organization owners and leaders to make informed decisions and take confident actions in your organization.
As a team leader within my previous company who has hired and trained several teammates, I understand the critical importance of your role in bringing on and keeping your most valuable employees. As healthcare organization owners and leaders, you are the organization's backbone, and your efforts in recruiting and retaining providers are paramount. The alarming shortage of physicians operating in the healthcare space, as we discussed in our previous blog post, "Avoiding Physician Burnout and Retaining Valuable Staff," magnifies this point further. Indeed, healthcare organizations that unlock the ability to recruit and retain top-tier medical providers will not only survive but can begin to thrive and grow within their communities.
Introduction
In today's highly competitive healthcare environment, attracting and retaining qualified physicians is a top priority for healthcare organizations. The shift from traditional practice ownership to employment is becoming increasingly common, driven by factors such as financial stability, work-life balance, and evolving healthcare landscapes. According to the American Medical Association, the share of physicians who are practice owners dropped to below 45%, marking a drop of nearly ten percentage points over the past decade. [1] Since more physicians are choosing employment over practice ownership, this blog explores strategies to maximize the benefits for doctors who decide employment, ensuring they feel valued, engaged, and satisfied with their career choices.
Understanding the Appeal of Employment vs. Ownership
Choosing between employment and ownership is a physician's most significant career decision. Each path offers distinct advantages and challenges that appeal to different professional and personal priorities. [2] For many physicians, the stability and predictability of employment outweigh the entrepreneurial risks associated with owning a practice. Understanding these factors is crucial for healthcare organizations looking to attract and retain top talent. [3] This section explores the key reasons physicians may choose employment over ownership, offering insights into how organizations can align their offerings with these preferences.
Financial Stability vs. Entrepreneurial Risk
Employment provides a predictable income, benefits, and reduced financial risk, which can be particularly appealing in today's uncertain economic climate. This stability reassures healthcare professionals about the viability of the employment model.
Work-Life Balance and Quality of Life
Work-life balance is a significant factor influencing physicians' decisions to pursue employment. Employed positions typically offer more structured work hours, fewer on-call responsibilities, and reduced administrative burdens compared to ownership. This balance allows physicians to spend more time with their families and deal less with the business's complexities.
What Employed Physicians Like Most About Their Jobs
According to the Employed Physicians Report survey [4], what employed physicians appreciate most about being employed is not having to run a small business (52% of respondents). Further, predictable income (50%), malpractice insurance coverage (27%), and greater work-life balance (21%) that comes with employment were also listed as factors that employed physicians appreciate most about being employed. These aspects allow physicians to focus more on patient care and less on the operational challenges of managing a practice. This focus on core medical responsibilities rather than business management tasks is a significant draw for many doctors.
What Employed Physicians Like Least About Their Jobs
However, only some aspects of employment are ideal. Employed physicians cite a lack of autonomy (48% of respondents), excessive workplace rules (34%), and mandatory performance targets (24%) as significant drawbacks. If not addressed, these frustrations can lead to dissatisfaction. Healthcare organizations must recognize these pain points and work to mitigate them by providing physicians with greater autonomy and reducing unnecessary workplace rules.
What Self-Employed Physicians Like Most About Their Jobs
Conversely, according to the Self-Employed Physicians Report survey [5], self-employed physicians highly value autonomy (64% of respondents) and control over their productivity (38%). They enjoy making decisions about patient care, practice management, and work schedules. Healthcare organizations can attract employed physicians by offering similar decision-making power and flexibility within their roles, such as leadership opportunities or participation in governance.
What Self-Employed Physicians Like Least About Their Jobs
Despite the benefits, self-employed physicians often struggle with a myriad of issues, including managing staff (28%), the challenges of running a business (27%), dealing with government regulations (26%), financial pressures (26%), and worse work-life balance (21%). These challenges are why some physicians prefer employment, which offers more stability and fewer management responsibilities. For many, the trade-off between autonomy and security is worth it.
Recruitment Strategies to Attract Top Talent
Recruiting top physician talent is increasingly difficult in today’s competitive healthcare industry. As the need for skilled providers grows, healthcare organizations must develop innovative and strategic approaches to attract the best candidates. [6] This section explores effective recruitment strategies, emphasizing competitive advantages and utilizing modern techniques. By customizing offers to individual needs and establishing a strong referral network, healthcare organizations can establish themselves as preferred employers, thus ensuring they attract and retain top medical professionals. [7],[8],[9],[10]
Highlighting Competitive Advantages
Offer Competitive Compensation: While work-life balance is critical, competitive compensation remains a top priority for physicians. Ensure your compensation packages are competitive and include bonuses, profit-sharing, or incentives tied to performance and quality of care. This approach aligns financial rewards with the organization's goals, making the offer more appealing. We will dive into this topic more in Part Two of this blog post.
Emphasize Work-Life Balance: Physicians increasingly prioritize work-life balance. Highlighting flexible scheduling, reduced on-call hours, and support for family life can make your organization more attractive to potential recruits. Emphasizing these aspects can differentiate your organization from others offering higher pay but demanding more personal sacrifice.
Tailoring Offers to Individual Needs
Customizable Benefits Packages: Allowing physicians to tailor their benefits to meet specific needs, such as student loan repayment, continuing education allowances, or sabbatical options, can make your offer stand out. Personalizing benefits shows that your organization is attentive to the individual needs of its employees, which can significantly boost recruitment success.
Relocation Assistance and Support: Comprehensive relocation packages, including assistance with housing, spousal employment, and community integration, are essential, especially when recruiting for rural or underserved areas. Such packages can significantly impact physicians' decision-making process.
Utilizing Modern Recruitment Techniques
Leverage Digital Marketing: Utilize social media platforms, targeted online advertising, and professional networks like LinkedIn to reach a broader audience of potential candidates. Digital marketing allows you to showcase your organization's culture and opportunities to a larger pool of potential recruits.
Employer Branding: Develop a strong employer brand that showcases your organization's culture, mission, and values. Use testimonials from current staff and highlight success stories to attract like-minded physicians. A strong brand can be a powerful tool in attracting candidates who align with your organization's ethos.
Recruitment Technology: Implement AI-driven tools to streamline recruitment, from screening candidates to scheduling interviews. These tools can increase efficiency, reduce time-to-hire, and improve the overall recruitment experience for candidates.
Building a Strong Referral Network
Referral Programs: Encourage current employees to refer qualified candidates by offering bonuses or incentives. Physicians are more likely to consider opportunities recommended by trusted colleagues, making referrals a highly effective recruitment strategy.
Engage with Medical Schools and Residency Programs: Establish relationships with medical schools and residency programs to create a pipeline of potential recruits. Offering scholarships, internships, or mentorship programs can help attract top talent early in their careers and develop a long-term recruitment strategy.
Retention Strategies for Employed Physicians
Keep in mind that attracting top physician talent is just one part of the battle; it's equally important to retain them for the success of a healthcare organization. As we mentioned in our previous blog post, “Avoiding Physician Burnout and Retaining Valuable Staff”, the cost of recruiting and replacing a physician can range from $500,000 to $1 million, with lost revenue per full-time equivalent physician estimated at $990,000. [11] The key to retaining physicians lies in creating a supportive, valued, and motivating work environment. [12] This section covers essential strategies for retaining employed physicians, such as fostering a positive work culture, providing ongoing professional development, and addressing burnout. By implementing these strategies, healthcare organizations can ensure their physicians stay engaged and committed to their roles, which leads to improved patient care and organizational stability.
Creating a Positive Work Environment
Workplace culture, team support, and recognition are crucial in retaining physicians. Creating a positive work environment where physicians feel valued and supported is essential. Regularly acknowledging achievements, providing opportunities for peer interaction, and fostering a collaborative atmosphere can significantly improve retention rates.
Ongoing Professional Development
Offering continuous education and career growth opportunities is vital for keeping physicians engaged and motivated. Providing access to conferences, workshops, and online courses helps physicians stay updated on the latest medical advancements and feel that their career development is a priority for the organization.
Addressing Burnout and Job Satisfaction
Addressing burnout is a significant issue among employed physicians. Strategies to prevent burnout, such as providing adequate resources, reducing administrative burdens, and ensuring a balanced workload, should make healthcare administrators and HR professionals feel empathetic and caring.
These topics are fleshed out in more detail in our previous blog posts, “Avoiding Physician Burnout and Retaining Valuable Staff” and “Building Organizational DNA in a Healthcare Setting”.
Special Considerations for Rural Healthcare
Recruiting healthcare providers to rural areas presents unique challenges, including limited financial incentives and social opportunities. [13] Rural healthcare organizations often need help competing with urban centers regarding salary and lifestyle offerings. Addressing these challenges requires a strategic approach.
Successful strategies for attracting and retaining physicians in rural settings include offering loan repayment programs, lifestyle incentives, and strong community support. Building a sense of community and belonging can make rural positions more attractive. Additionally, highlighting physicians' professional autonomy and impact in these communities can appeal to those seeking meaningful work.
Putting It All Together
Recruiting and retaining top physician talent is a strategic imperative for healthcare organizations in today’s competitive and dynamic landscape. A complex interplay of financial, professional, and personal factors profoundly influences physicians' decisions between employment and ownership. By understanding these dynamics and implementing targeted strategies, healthcare organizations can not only attract but also retain the brightest minds in medicine.
To effectively recruit physicians, organizations must emphasize the unique advantages of employment—such as financial stability, work-life balance, and reduced administrative burdens—while addressing individual candidates' specific needs and preferences. Moreover, establishing a strong referral network and building relationships with medical schools and residency programs can ensure a steady pipeline of qualified candidates.
Retention, however, is where the long-term success of these efforts is determined. Creating a positive work environment that fosters collaboration, support, and recognition is critical to keeping physicians engaged. Continuous professional development opportunities not only enhance physicians’ skills but also show a commitment to their growth, making them more likely to stay. Addressing the pervasive issue of burnout through proactive strategies—such as workload management, mental health support, and reducing administrative burdens—further strengthens physician satisfaction and loyalty.
Recruitment and retention challenges are even more pronounced for organizations operating in rural areas. However, with thoughtful strategies that include financial incentives, community integration, and professional autonomy, these organizations can successfully attract and retain physicians who are skilled and passionate about making a difference in underserved communities.
A Closing Message for Healthcare Owners and Operators
The ability to recruit and retain top physician talent will be a defining factor in the success of healthcare organizations moving forward. By prioritizing physicians' needs and preferences, offering competitive and tailored packages, and fostering a supportive work environment, healthcare organizations can ensure they remain competitive and capable of delivering the highest quality of care. As the healthcare landscape continues to evolve, those organizations that invest in their physicians will be best positioned to thrive and lead in this ever-changing field.
How do you offer competitive packages and prioritize physicians’ needs? That is the topic of Part Two of this blog post series: “Recruiting and Retaining Providers Part Two – How to Incentive and Compensate Appropriately”.
Cinnamon Hill Partners is an entrepreneur-led investment firm dedicated to ensuring your business continues to thrive under committed leadership.
If you found this content interesting and would like to get in touch, please click one of the buttons below!
[1] Strazewski, L. (2021). Practice owner or employee? Physicians' specialty may tell the tale. American Medical Association. Retrieved from https://www.ama-assn.org/medical-residents/transition-resident-attending/practice-owner-or-employee-physicians-specialty-may
[2] The Shifting Landscape: Understanding the Choice Between Employment and Ownership for Medical Professionals. (2023). Rx for the Business of Medicine. Retrieved from https://www.rxtbom.com/
[3] Employment Choices in Medicine: Navigating the Complexities of Being an Employee vs. Self-Employed. (2023). Rx for the Business of Medicine. Retrieved from https://www.rxtbom.com/
[4] Kane, L. (2022). Employed Physicians Report: Loving the Focus, Hating the Bureaucracy. Medscape. Retrieved from https://www.medscape.com/slideshow/2022-employed-physicians-rpt-6015602
[5] Kane, L. (2022). Self-employed Physicians Report: Is It Worth It to Be Your Own Boss? Medscape. Retrieved from https://www.medscape.com/slideshow/2022-self-employed-phys-6015850
[6] Comprehensive Guide for Medical Providers: Recruitment and Onboarding Best Practices. (2023). Rx for the Business of Medicine. Retrieved from https://www.rxtbom.com/
[7] Commins, J. (2022). Top 10 physician recruitment strategies and tactics. Becker’s Hospital Review. Retrieved from https://www.beckershospitalreview.com/workforce/top-10-physician-recruitment-strategies-tactics.html
[8] Staffency. (2022). 9 healthcare recruitment strategies for hiring success. LinkedIn. Retrieved from https://www.linkedin.com/pulse/9-healthcare-recruitment-strategies-hiring-success-staffency-l4cxc/
[9] Stephens, S. (2022). Recruiting strategies for primary care providers. Medical Economics. Retrieved from https://www.medicaleconomics.com/view/recruiting-strategies-for-primary-care-providers
[10] Peoplescout. (2021). Physician recruiting strategies. PeopleScout. Retrieved from https://www.peoplescout.com/insights/physician-recruiting-strategies/
[11] Henry, Tanya Albert. Investing in physicians’ well-being is just good business. (2017). Retrieved from: https://www.ama-assn.org/practice-management/physician-health/investing-physicians-well-being-just-good-business
[12] Bernard, R. (2023). Top 5 ways organizations can retain great physicians. Medical Economics. Retrieved from https://www.medicaleconomics.com/view/top-5-ways-organizations-can-retain-great-physicians
[13] Sramcik, T. (2019, August 20). The Challenges of Recruiting for Rural Healthcare Positions. Health eCareers. Retrieved from https://www.healthecareers.com/employer-resources/rural-recruiting/the-challenges-of-recruiting-for-rural-healthcare-positions
