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Key Takeaways:
Physician and advanced practice providers (APPs) turnover remain an ongoing challenge for medical groups nationwide, requiring a nuanced understanding of the underlying factors and effective strategies for navigating this issue.
A new study combing Premier’s Provider Practice Benchmarking data offers a deep dive into these trends, uncovering some eye-opening insights that shed light on the state of physician and APP turnover and recruiting in the healthcare industry.
According to the study, over the past two years, roughly one in every five providers in medical groups across the United States were new to their practice. That's a staggering statistic, highlighting the significant turnover rate within medical groups.
Of the providers who left their medical groups, 68 percent were physicians while 32 percent were APPs. Notably, the departure rate in 2022 was higher compared to 2023, which we believe could be attributed to the lingering effects of COVID-19 burnout.
Understanding departure rates provides valuable insights into provider tenure, with specialists generally exhibiting longer tenures compared to primary care providers.
Further, about 12 percent of departures resulted from medical groups divesting practices or service lines. The highest divestment rates were found in physiatry, urgent care, hospitalist programs and ENT. The fewest divestments were found in urology, emergency medicine, neurosurgery and gastroenterology. This sheds light on how the strategic decisions made by medical groups to realign their focus or streamline operations impact workforce composition.
In contrast, 63 percent of new hires were physicians, while 37 percent of new hires were APPs. This distribution reflects the evolving dynamics in healthcare delivery, with a gradual shift towards recruiting more APPs than physicians.
The study also examined the distribution of new hires across specialties, revealing interesting trends. For instance, urgent care, orthopedic surgery and family medicine witnessed a higher proportion of APP hires, suggesting a growing reliance on APPs in certain specialties.
Moreover, medical groups are strategically expanding their services in specific specialties such as ENT, OB/GYN, emergency medicine and physiatry. This strategic focus on expansion underscores the importance of aligning organizational growth initiatives with patient needs and market demands.
Digging deeper, it becomes clear that the reasons behind hiring new providers are multifaceted. Sixty one percent newly hired physicians and APPs are brought on board to fill vacancies left by departing providers. Additionally, 22 percent of new hires were to accommodate organic growth, while 17 percent were part of strategic expansions, underscoring the diverse drivers behind recruitment efforts. This suggests that turnover isn't just a matter of natural attrition; it's also influenced by factors such as organizational changes, workplace culture and job satisfaction.
It's essential to recognize that turnover isn't just a logistical headache; it also may come with a hefty price tag. From the time it takes to find and onboard a new provider to the financial costs associated with recruitment and training, turnover can take a significant toll on medical group finances. That's why prioritizing provider retention is crucial. By fostering a supportive work environment, offering professional development opportunities and promoting work-life balance, medical groups can create a culture that encourages providers to stay for the long haul.
The Provider Practice Benchmarking solution aggregates disparate data from multiple sources, allowing medical group leadership to measure, monitor and manage 650+ critical metrics across seven functional areas with a single source of truth. This transparent and actionable data identifies opportunities and performance gaps that can be leveraged to improve access, increase revenue and manage costs.
The insights gleaned from the Provider Practice Benchmarking data shed light on the multifaceted nature of physician and APP turnover and recruiting within medical groups. The Provider Practice solution provides invaluable insights enabling organizations to identify patterns and trends. These benchmarks help uncover underlying issues, allowing targeted interventions to improve provider satisfaction and retention strategies.
Concurrently, the Premier Advisory Services team offers tailored guidance and strategic support leveraging industry expertise and leading practices. Advisors partner from assessment to implementation, identifying areas for improvement and implementing effective solutions. By leveraging data-driven insights alongside expert guidance to understand the underlying trends and drivers of turnover, healthcare leaders can proactively address challenges, optimize recruitment efforts and cultivate a resilient workforce that delivers high-quality care to patients.
Methodology
Our analysis focused on the 24-month period from October 2021 to September 2023 (data extending back to July 2021 and up to December 2023 was also used as needed to ensure accurate results). Using the following criteria, every provider in Premier’s Provider Practice Benchmarking dataset was assigned to one of four categories:
Throughout the analysis, we used provider headcount (not FTEs), since it takes essentially the same resources to retain, recruit or terminate a provider, regardless of FTE status.
Methodology examples:
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