2024 Review of Physician and Advanced Practitioner Recruiting Incentives
The Engines That Drive Revenue Competition for physicians and APPs has grown as the number of organizations providing care has grown. Competition also is driven by the key role physicians and APPs play in healthcare economics as revenue generators. The revenue-generating potential of physicians and APPs is captured in AMN Healthcare’s 2023 Physician Billing Report , which tracks annual billing by physicians in 18 medical specialties to commercial payors. The annual average for all specialties tracked in the report is $3.8 million, though billing varies by specialty (see below):
AVERAGE ANNUAL PHYSICIAN BILLING BY SPECIALTY TO COMMERCIAL PAYORS 1. General Surgery $11,669,016 2. Orthopedic Surgery $9,809,514 3. Critical Care (Intensivist) $6,677,319 4. Urology $5,886,763 5. Gastroenterology $5,530,221 6. Otolaryngology $4,190,555 7. Obstetrics/Gynecology $3,761,777 8. Rheumatology $3,410,281 9. Cardiology $3,406,027 10. Anesthesiology $3,329,020
Source: Physician Billing Report. AMN Healthcare. 2023
These amounts do not include billing to Medicare and other government payors, which could significantly increase the billing averages for some specialties. Given a collection rate of 50% or even less, most physicians generate millions of dollars in net revenue per year and continue to control how much of the healthcare dollar is spent
Workforce Volatility: Burnout and Turnover Today’s physician recruiting market is characterized not just by a dearth of candidates in many specialties, but by high turnover rates caused by physician burnout. According to the Association of Advancing Physician and Provider Recruitment’s (AAPPR) Physician and Provider Recruitment Benchmarking Study , 48% of all physician searches in 2021 were to replace departing physicians. This is up by 16% since 2018. One-third of physicians (33%) cited burnout as the reason for leaving their organizations. ( Report Finds Physician Shortage on the Rise as Burnout Continues to Drive Turnover. AAPPR Press Release. Oct. 18, 2022 ). The physician workforce is in a volatile state, as many physicians are reconsidering where, when and how they work. In response, employers need to be flexible and competitive in what they offer to physician and APP candidates, while also putting renewed focus on retention. Findings from the 2024 Review offer data that may be useful in creating competitive physician and APP recruiting programs that also support enhanced provider recruitment and retention.
of all physician searches in 2021 were 48%
to replace departing physicians
© AMN Healthcare 2024
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