Retain employed physicians using the tools you already have
A new report from the Physicians Advocacy Institute found that nearly 70% of all physicians are employed by hospitals or other corporate entities. This number surpasses previous estimates of 50%, demonstrating that the employment trend is still on the rise.
But will hospitals be able to keep their employed physicians?
A recent Jackson Physician Search survey showed that 50% of physicians are considering leaving for a new employer; 15% are considering leaving medicine entirely; and 21% are considering early retirement. In other words, physician retention has never been more challenging, and the physician shortage is not going to subside any time soon.
The combination of increased competition for physicians and the growing physician shortage could pose a problem for smaller, community hospitals and health systems that are struggling to keep up in this challenging environment.
The good news is, these hospitals probably already have the right tools at their disposal. They just need to know how to use them to their advantage.
A retention benefit plan can be an invaluable tool. Many hospitals already have retention plans in place, but since they haven’t been regularly updated or effectively communicated to physicians, they don’t have much of an impact on retention.
MaxWorth’s data tells us that hospitals using a well maintained and effectively communicated retention plan have a 3-year cumulative turnover rate of 3.38% compared to the average three-year turnover rate of 25%, which illustrates how important it is to make sure a plan is set up for success.
Impact of Communication
Even the best plans will be ineffective if they aren’t well communicated. Since retention has a significant impact on an organization’s bottom line, it comes as no surprise that 70% of healthcare administrators say that they have a retention program in place. What is surprising is that 83% of physicians say their organization does NOT have a retention program in place. This means that retention programs are not being effectively communicated to physicians.
When physicians don’t understand their benefit plans or the advantages of participation, they can’t appreciate a hospital’s retention efforts.
Being able to appreciate a retention plan goes a long way. A Principal Financial survey found that 68% of participants say that benefit plans are a top factor when deciding whether or not to stay with an employer, and 78% say that benefit plans are a top deciding factor when considering a new job.
Impact of Plan Review
By conducting routine plan reviews, a hospital can keep its plan up to date and in compliance. It can also ensure that the plan continues to meet their needs and their physicians’ needs.
A plan can be, and should be, tailored to a hospital’s most pressing objectives. Since these objectives are likely to change over time, reviews are necessary if a plan is going to be used as a strategic tool.
Elements of a Plan Review
The following elements should be evaluated during a plan review:
- Plan Design
- Plan Financing
- Plan Communication
- Plan Support Services
When these elements are kept up to date, a retention plan can help a hospital face some of healthcare’s biggest challenges.
MaxWorth can help
MaxWorth can review your existing retention plan and help identify ways it can be updated and brought into alignment with your current organizational objectives.
Having years of experience in both the healthcare and financial services industries, we are positioned to help you build a plan tailored to the needs of your hospital and physician employees.
If you’re interested in learning more about MaxWorth’s retention plan review process, schedule a call with one of our plan consultants today.
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