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Early Focus on Physician Satisfaction is Key to Retention
Cejka Search and AMGA 2004 Physician Retention Survey Reveals Trends Among Medical Groups
To download the on-line reports, click the following: 2005 Physician Retention Survey | 2004 Physician Retention Survey
Results of a physicianretention survey released, concludes that early preventivecare taken to maximize physician satisfaction can play akey role in preempting physician turnover. The survey wasconducted by Cejka Search, a national leader in physician and healthcare executive recruitment, and the American Medical Group Association (AMGA).
A key finding of the survey shows that more than half (54 percent) of physicians who leave their medical groups do so within the first five years. “It should also be noted that sometimes, the decision to leave is often made as early as the first three to five months,” saysCarol Westfall, president of Cejka Search. Cejka Search andthe AMGA hope that the survey will serve as a benchmark in monitoring physician turnover, and alert employers about the importance of monitoring a new physician’s adaptation to a medical group. “The information from the survey implies that physician retention -- just like the medical care they provide -- requires preventive and early treatment for the best outcome,” she adds.
Joseph Scopelliti, M.D., executive vicepresident of clinical affairs at the GuthrieClinic in Sayre, PA, and AMGA speaker on the subject of retention, endorses the urgency of evaluating physician satisfaction at the onset. “The most fragile time for physician retention is in the early stages of employment when physicians are learning about a medical group’s culture and are looking for their own fit,” he says.
Other Key Findings
Another key finding is that physician turnover is actually higher than perceived by medical groups. According to Westfall, a commonly held belief among medical groups is that turnover is around five percent. The survey found, however, that the average rate of turnover was reported at nine percent.
“In the business world, a turnover rate of nine percent may not be cause for concern. In the medical profession, however, given the physician shortage and costs involved in replacing one, that nine percent can be unduly burdensome,” Westfall says. “Not only is there the loss created by undelivered services and changes in referral patterns due to shifts in patient loyalty, but there is also the additional cost of recruitment and getting a new physician through the learning curve,” she adds.
With its experience of completing more than600 assignments a year, Cejka Search estimates an average cost of $3,000 per physician candidate and spouse in interview expenses as well as the additional costs associated with lost productivity from an unfilled position and replacement costs, including the cost of the interview team’s lost time and productivity.
Despite these cost concerns, only 27 percent of the respondents reported that their group had any kind of written or formal retention plan to address physician turnover. Westfall warns that this is extremely unwise. “Unless groups allocate necessary resources to invest in formalizing and implementing effective physician retention programs, turnover rates are likely to increase in the same proportion as the projected increasing rate of physician shortages,” Westfall says.
The survey also found compensation and practice issues among the top reasons for a physician to leave a medical group. According to the survey, practice issues cause physicians to leave approximately 30 percent of the time and compensation causes separation approximately 20 percent of the time. In addition, physicians leave due to disappointment over what they consider to be "broken promises," such as patient volume falling short of expectations at hiring, or partnerships not becoming available when the physicians perceived they would be.
Practical strategies and recommendations to improve retention include better managing physician expectations, starting with the initial interview. Groups that improve communication during the hiring stage, and include realistic details about potential income beyond the guarantee period, may avoid unrealized expectations and subsequent separation.
“Groups that are successful with retention make recruiting the lifeline to their organization’s success,” says Westfall. “They actively involve senior leadership in the recruitment, interview and follow-up processes with physician candidates.”
Methodology
The survey, which compiled responses from 67 nationwide AMGA-affiliated medical groups ranging in size from less than 50 physicians to more than 150 physicians, breaks down information by specialty, group size and regional locations, along with information on turnover tracking and retention practices. To obtain an electronic copy of the Cejka Search and AMGA Retention Survey, click here.
About Cejka Search
Cejka Search is a nationally recognized executive and physician search organization providing services exclusively to the healthcare industry for more than 20 years. Partnering with organizations in pursuit of the nation’s best healthcare talent, Cejka Search completes assignments across all levels of the healthcare continuum. Cejka Search is a Cross Country Healthcare, Inc. (Nasdaq: CCRN) company, a leading provider of healthcare staffing services in the United States.
About American Medical Group Association
The American Medical Group Association (AMGA) represents medical groups, including some of the nation’s largest, most prestigiousintegrated healthcare delivery systems. AMGA advocates forthe multispecialty medical group model of healthcare deliveryand for the patients served by medical groups through innovationand information sharing, benchmarking, leadership development,and continuous striving to improve patient care. The membersof AMGA deliver healthcare to more than 50 million patientsin 42 states, including 15 million capitated lives. Headquarteredin Alexandria, Virginia, AMGA is the strategic partner formedical groups providing a comprehensive package of benefits,including political advocacy, educational and networkingprograms and publications, benchmarking data services, andfinancial and operations assistance. For more information,visit www.amga.org.
For more information, contact Cejka Searchat 314-726-1603.
Receivea free copy of the report by clicking here.