Physician retention plans help reduce costs and optimize revenues

Area of Science:

• Healthcare Management
• Medical Practice Administration
• Physician Workforce Studies

Background:

• Physician recruitment is a significant financial burden for large practices, involving millions in expenses and lost revenue.
• Intense competition for physicians can lead to prolonged vacancies, impacting practice operations and financial stability.
• Effective physician retention is vital for maintaining a practice's financial health and operational efficiency.

Purpose of the Study:

• To outline a comprehensive physician retention plan designed to mitigate recruitment costs and reduce physician turnover.
• To detail a phased approach to physician employment, addressing key stages from recruitment to post-employment.
• To improve practice financial well-being through strategic human resource management in physician staffing.

Main Methods:

• Development of a physician retention plan by Penn State Geisinger Health System for a large multispecialty group practice.
• Structuring the plan into four distinct phases: recruitment, pre-employment, employment, and post-employment.
• Focus on reducing costs associated with physician recruitment and improving overall physician retention rates.

Main Results:

• The implemented plan aims to reduce the substantial financial impact of physician recruitment.
• Successful retention strategies can lead to decreased physician turnover and improved staff morale.
• The plan fosters a positive practice environment, positioning it as a preferred healthcare provider.

Conclusions:

• A structured physician retention plan is essential for the financial viability of large medical practices.
• Addressing the entire physician employment lifecycle is key to successful retention.
• Investing in physician retention yields significant returns by reducing costs and enhancing practice reputation.