Are you paying your doctors too much!?
What happen to the days of the Country Doc that could take out your tonsils, deliver your baby, set your fracture, diagnose your grandmother and treat little Johnny? They were on call 24/7 and would even come see you in the hospital!
Well those days are quickly disappearing and the Hospitalist and outpatient only model has become the new norm. Now a work/life balance for physicians is in demand. There is a competition to hire physicians today, and we’ve seen firsthand how the competition to hire physicians affects compensation.
So now that the physicians are working a more manageable schedule and asked to have a more specified job, you would think that their pay would decrease or at least balance out. NOT A CHANCE.
There is a war for talent and physician salaries and recruitment packages are at an all-time high. The medical climate is uncertain and there is a tremendous shortage of primary care physicians fueling this inferno. Is your hospital prepared for the onslaught of new patients on the horizon? Are you going to turn them away only to lose downstream revenue to the competing ententes that surround you?
Recently, we witnessed a bidding war for a husband and wife, Internal Medicine couple that were finishing residency. They received an offer that would yield both of them $225,000/year and a $40,000 sign-on bonus only to lose to another organization offering $240,000/year and a $100,000 sign-on!!
Of course we are seeing the Alex Rodriquez type contracts in the specialty fields as well with a recent Urologist getting $440,000/year salary and a $125,000 housing allowance in California and Orthopedist receiving $600,000/year in Montana! These numbers are staggering and well above the median income we see nationally.
So how do the hospitals and groups compete if they don’t have the revenue or capital to offer the big contracts? Can they offer work/life balance? A good quality of life? Maybe student loan repayment?
Flexibility and understanding to the market is key today. Be prepared to offer competitive financial packages and know your candidate. A good recruiter will know why a physician is looking and interested in making a change. They should be able to uncover the layers, build trust and help throughout the entire process. In this competitive market, a recruiter could be your saving grace.
Are you a hospital recruiter facing this situation with competing offers? Are you physician seeing a rise in the first year compensation offers you receive from hospitals? Share your story by reaching out to our consultants or by commenting below.
by Strider Murphy, Senior Search Consultant at Fidelis Partners
phone: (949) 325-7633
email: smurphy@fidelismp.com
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