Addressing Physician and Advance Practice Providers staffing shortages is a necessity for healthcare organizations, yet many hospitals and health systems remain unsure about the most effective way to go about it.
During an August Becker's Hospital Review podcast sponsored by CHG Healthcare, Scott Polenz, principal consultant at CHG Healthcare, discussed the current state of staffing shortages, strategies for boosting provider retention and the rationale for consolidating physician services within health systems.
Three key insights were:
- The root causes of current provider shortages are historical and demographic. It is estimated that by 2028, the U.S. will have a shortage of 70,000 to 94,000 physicians. Two major trends have contributed to this problem:
- Restrictions on medical school admissions, which were implemented in the 1970s, due to fear at that time of having too many physicians. These restrictions over the past several decades have limited the number of new physicians.
- Aging of the population and of physicians. Aging of the population increases the demand for healthcare; aging of physicians decreases the supply of physicians. "In 2029, 50% of physicians are going to be 55 or older," Mr. Polenz said.
- To minimize staffing shortages, leaders must boost recruitment and retention in a way that resonates with Physicians’ priorities. Recruitment and retention strategies must be aligned with three key physician and advanced practice provider (APP) priorities outside of compensation:
- Better work-life balance
- More flexibility (e.g. opportunities to provide care via telehealth)
- A culture where Physicians’ ideas are heard and followed up on
"Culture is very complex and very local. ," Mr. Polenz said. "It's not about pizza parties and pool tables — it's about creating an environment where people feel safe, heard and valued." He noted that leadership development programs and instilling accountability for roles, goals and measures are essential elements of organizations with a strong positive culture.
Reducing burnout is another important measure for improving physician engagement and retention — and with that, organizations' cost containment efforts. "Physicians who are fully engaged are 26% more productive than non-engaged physicians, and if you lose a physician, the cost of recruiting [and onboarding] a new physician ranges from $1 million to $1.2 million," Mr. Polenz pointed out.
- Having formal workforce plans and bringing physician and app services under one roof are key to long-term organizational success. To achieve alignment between recruitment and retention initiatives, physician priorities and long-term strategic goals, organizations need to have a formal workforce plan in addition and that is also tied into their strategic plan.
"Often, organizations will have a workforce plan in place for their physicians and APPs and then the organization's strategic plan is off on the side," Mr. Polenz said. "They need to make sure their recruitment plan is within their strategic plan and they're on the same page."
As part of tying their workforce plans to their broader strategic plans, health systems should also consider bringing all matters related to clinician credentialing, recruitment, compensation, benefits, leadership development and well-being under one structure.
"It's our job as leaders to help physicians move the rocks that they need to practice medicine because nobody walks in the door of a hospital or a clinic to see an administrator — they come to see the physician."