Recent physician recruitment survey

By Kirk Mathews, MBA

Merritt Hawkins & Associates recently released their 2009 Review of Physician and CRNA Recruiting Incentives report and revealed some interesting, but not particularly surprising, trends. This review is based on the physician and CRNA search assignments that Merritt Hawkins & Associates conducted during the 12-month period from April 1, 2008 to March 31, 2009. I look at some of the numbers with a bit of skepticism since this is totally a report of its own internal data. However, it does seem to affirm some trends that are evident in the marketplace. Here are some highlights of interest to hospitalists:

Great demand for hospitalists!
Hospitalists are third on its list of most sought after physicians, right behind family practice, which is number one by a long shot, and number two, internal medicine. The report correctly points out that since many internal medicine physicians are pursuing hospitalist positions, the demand for traditional internists is on the rise. Personally, I am of the opinion that the practice of traditional (outpatient and inpatient) internal medicine faces possible extinction over the next 10 years or so.

Hospitals are hiring more and more physicians.
This is a result of several factors. Physicians are less interested in being  “business owners” today. Therefore, hospitals are having much more difficulty recruiting to solo or even group practices. Hospitals find it easier to simply employ the physicians that their service area requires, and the physicians are more than willing to accept such employment arrangements. Hospitals are likely to continue to pursue this strategy as healthcare reform and the potential for bundled payments becomes more real.

Hospitalist incomes are rising!
The average income offered to hospitalists in the Merritt Hawkins & Associates searches increased by $20,000 from the previous year, rising from $181,000 to $201,000. This comes as no surprise if you have tried to recruit hospitalists recently. This represents an 11% increase in one year, second only to neurology which experienced a 12% increase in the amount of income offered.

Finally, I would offer a word of caution about this report. As I stated earlier, as a report of only its own search engagements, the data is subject to trends that would be affected by its own marketing plans and abilities. For example, the report shows a definite trend toward increased search activity in smaller communities from previous years. This indicates which locations Merritt Hawkins & Associates sold search engagements, but it also might explain some of the increases in salaries and signing bonuses reported. It is common practice for smaller communities to offer more financial incentives to physicians. That being said, I believe the report affirms some trends that have been evident in the recruiting marketplace and is generally good news for hospitalists.

Editor’s note: Keep a lookout for Kirk Mathews at the upcoming Greeley Medical Staff Institute Symposium (November 7-8, 2009, Naples, Fl) where he will be speaking on hospitalist recruitment and retention! Stop by and say hello to Kirk and all the speakers!