Both physician recruiting and compensation have become more competitive as market disruptors have entered the field, according to AMN Healthcare's "Review of Physician and Advanced Practitioner Recruiting Incentives," published Aug. 5
The report is based on a representative sample of 2,138 search engagements AMN Healthcare conducted from April 1, 2023, to March 31, 2024. The data includes starting salary and other incentives offered to physicians and advanced practice professionals nationwide.
In 2021, the Association of American Medical Colleges forecasted a shortage of up to 124,000 physicians in 2034, with approximately 47,000 too few primary care physicians and 77,000 specialists. But the 2024 report found the projected shortages may drop to 86,000 physicians in 2036 if additional funding for residency spots is secured.
Here are five trends in physician recruitment:
1. The reduction of healthcare access has led many organizations that did not traditionally recruit physicians or advanced practice providers to start recruiting. CVS/Aetna, Walgreens, urgent care centers, telehealth programs, insurance programs and private equity-owned medical groups have made physician recruiting more competitive and have acted as "market disruptors" to the traditional hospital recruiting process.
2. In a 2023 AMN Healthcare’s Physician Solutions survey, 56% of residents said they had been contacted 100 or more times by recruiters with job offers. This is the highest percentage of residents contacted over 100 times since the survey began in 1991.
3. The physician recruiting market is "characterized not just by a dearth of candidates in many specialties, but by high turnover rates caused by physician burnout," the report said. The impact of burnout first made its mark in 2021 when 48% of all physician searches were to replace departing physicians.
4. The physician workforce has reconsidered where, when and how they work. In response, employers have had to be flexible and competitive in attracting physicians while putting renewed focus on retention.
5. Physician compensation has also increased amid the heightened competition for talent. Average starting salaries for physicians are up year-over-year with increases seen in 13 of 20 specialties and decreases in only four specialties. Eight more notes on physician pay:
- The average sign-on bonus for physicians was $31,473.
- The average relocation allowance was $11,284 and the average continuing medical education allowance was $3,969.
- Family physicians topped the search engagements for the 18th year in a row, but demand for family and other primary care physicians is down compared to last year.
- Only 14% of search engagements were for primary care physicians, down from 17% last year.
- Sixty-three percent of search engagements were for physician specialists, including OB-GYNs, gastroenterologists, radiologists and cardiologists.
- Of search engagements, 71% were in communities of 100,000 people or more, showing demand for physicians is not limited to rural communities.
- Search engagements were most common in hospitals (28%), groups (26%) and academics (22%).
- A large majority, 83%, of positions needed in academic settings were for clinical faculty, followed by leadership and administration at 14% and research faculty at 3%.