The cost of hiring and training new physicians is a major drain on hospitals, especially those with high turnover. But a new survey conducted by physician search firm Merritt Hawkins reveals another reason to focus on retaining physicians besides avoiding hiring costs.
Physicians are major drivers of hospital revenue. The survey revealed that physicians generate an average $2,378,727 per year in net revenue on behalf of their affiliated hospitals, up 52 percent from 2016.
These figures highlight the need to retain clinical staff and concentrate on in-house efforts on this area in order to cut costs associated with rehiring. There is also the need to maintain a consistent flow of revenue that would result from physicians staying put.
This can be achieved through hiring incentives and improved staff wellness programs among other perks. The firm said the survey results also showed that doctors continue to drive revenue even amidst the transition from volume to value, especially among aging or more complex patient groups requiring more complicated care.
Travis Singleton, Merritt Hawkins executive vice president said that physicians continue to drive the financial health and viability of hospitals, even in a healthcare system that is moving towards value-based care solutions.