The Future Medical Staff: How benefits can impact a hospital’s legacy

By: Kyle Worthy

Circle Ring Cover Images

Hospitals are searching for ways to ease the financial pressures they’re facing, and most have found that cost-cutting efforts alone cannot adequately improve operating margins. A recent Modern Healthcare article reported that identifying new sources of revenue was an urgent priority for ninety percent of healthcare executives. 

 

Due to shrinking operating margins, many facilities are at risk of being acquired by larger hospitals; therefore, they feel that their independence hinges on their ability to find additional revenue streams. Without additional resources, the costs associated with attracting and retaining physicians in an increasingly competitive environment may exacerbate their risk of an acquisition or merger. 

 

The good news is, compensation can be used in a number of ways to secure your medical staff and aid in the improvement of your operating margin.  

 

Attraction and Rewards

 

Due to the increased competition for physician talent, it’s important for hospitals to create impactful rewards that will aid in recruitment. A client recently shared with us that the addition of one new provider can increase hospital revenue by $1.5 million. Our programs are built to provide physicians with executive-benefit type rewards that are common in the corporate world but cannot be found at many other competing hospitals. This competitive advantage in recruitment can quickly turn into increased revenue for the hospital. 

 

Physician turnover can be even more costly than recruitment. Studies show that twenty-five percent of physicians leave an organization during their first three years of employment, and it is estimated that the loss of a single physician can cost over $500,000. We’ve found that hospitals offering a better rewards suite experience a three-year turnover rate of only 3.8%. With the cost of turnover estimated at $500,000 per provider, in a 10-member physician population, the cost savings can reach a million dollars every three years. Based on these assumptions, the hospital is saving an average of $333,000 a year. 

 

Recovery and Endowment

 

The rise in physician employment has placed additional financial strain on hospitals. With all existing assets committed, it’s important to find ways to offset the cost of employment so that it does not threaten the financial viability of the organization. By incorporating a platform for cost recovery into its benefit plan design, a hospital can recover its investment in an employed medical staff and improve its operating margin. The decision to adopt this approach ensures that a hospital will be able to continue to provide care to its community for generations to come. 

 

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?

Check out these additional resources for the Call Pay Solution®, our three-phase, six-step process that empowers your organization to create a more fair, transparent and sustainable call pay plan.

The cascading impact of call coverage disputes

The cascading impact of call coverage disputes By: Kyle Worthy 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…

Telemedicine’s impact on call pay

Telemedicine’s impact on call pay By: Kyle Worthy COVID has brought about the widespread adoption of telemedicine. This technology can be a lifeline, particularly for smaller and rural facilities. For example, KershawHealth in Camden, South Carolina has thrived since it implemented a sophisticated telehealth system after losing many of its…

Perspectives on a Pandemic: Lessons learned from our podcast series

Perspectives on a Pandemic: Lessons learned from our podcast series By: Kyle Worthy Understanding COVID-19 has been a challenge, but at least one thing was immediately clear: its impact would be far reaching. Our podcast, Courage in Healthcare, recently launched a series called “Perspectives on a Pandemic.” We’ve spoken to…

Perspectives on a Pandemic: Dr. Ben Fickenscher

Perspectives on a Pandemic: Dr. Ben Fickenscher By: Kyle Worthy Courage in Healthcare · Perspectives on a Pandemic: Dr. Ben Fickenscher The Pandemic’s Impact On The Opioid Crisis   Covid-19 has altered our world in many ways. Members of the healthcare community have overcome unforeseen challenges and, in the process, they’ve…