New physicians are seeking employment, are your benefits aligned with this trend?

Smiling kid is seeing physician with mother stock photo

The 2019 Medscape Young Physician Compensation Report shows that the majority of new physicians prefer employment over private practice. In fact, another Medscape report showed that only 22% of residents were considering self-employment. 

 

This comes as no surprise given that more physicians are employed than ever before. Rising costs, regulatory complexity, and economies of scale have all played a role in driving more physicians toward employment. 

 

Employment trend impacts compensation 

 

The rise in employment has brought about a change in the way many physicians are compensated. As hospitals compete for physician talent, they’re searching for compensation strategies that will distinguish them in the marketplace. 

 

It’s important for hospitals to remember that compensation practices that are prevalent in other industries may not be sufficient for physician employees. When we think of employee compensation, we typically think in terms of salary and qualified retirement plans. While it’s common to see physician compensation packages that include RVUs, signing bonuses, and/or a form of income guarantee, these elements won’t distance a hospital from its competition. Furthermore, they won’t help physicians with their unique needs. Physicians typically have a greater-than-average student loan debt. And, since they’re highly compensated, they often require creative retirement planning solutions. 

 

Accounting for physicians’ unique needs

 

Hospitals can account for these needs by offering a more balanced rewards suite that combines at-risk, short-term bonuses with long-term rewards. These components are highly customizable and can be aligned with a hospital’s organizational goals. Through our strategic partner network, our clients are able to analyze revenue by provider and compare provider productivity relative to patient complexity. This enables them to reward productivity and quality, which ultimately results in improvement in these areas. In fact, improvement in productivity often offsets the cost of additional bonuses and rewards.

 

Keeping physicians’ unique situation in mind can turn compensation into a tool for attraction and retention. Since competition for physician employees is on the rise, it’s important for a hospital to make sure it has the right compensation strategy in place to secure the future of its medical staff.

 

REQUEST OUR WHITE PAPER

Complete the form below and receive a copy of our latest white paper, The Call Pay Solution: Stabilizing budgets with a fair and sustainable approac
Something went wrong. Please check your entries and try again.

Want to Learn More?

Hospital pay equity: it all comes down to fairness

Hospital pay equity: it all comes down to fairness Becker’s Hospital Review recently reported that a clinical psychologist has sued Northern Light Acadia Hospital in Bangor, Maine after learning that her salary was nearly half that of her male colleagues. While she was earning $50 an hour, the men were…

Benefit offerings can help your practice safeguard its autonomy

Benefit offerings can help your practice safeguard its autonomy Many physicians enjoy the autonomy provided by private practices. A 2019 McKinsey survey reported that 79% of small independent practitioners and 67% of large independent practitioners cited autonomy as a major factor in their choice to remain self-employed at a time…

COVID exasperates the issue of physician burnout. To help your providers, start with a conversation

COVID exasperates the issue of physician burnout. To help your providers, start with a conversation. MaxWorth works with many hospitals and health care providers in rural communities. We’ve observed first hand the kind of stress these facilities face due to physician shortages. It’s not uncommon for physicians in these communities…

The cascading impact of call coverage disputes

The cascading impact of call coverage disputes In early September, Community Regional Medical Center in Fresno, CA was given 48 hours to resolve a contract dispute that had resulted in the loss of neurosurgery coverage in their emergency department. If they had failed to resume coverage, they would have lost…