The Missing Physician
This website will help you calculate exactly how much your organization loses when a physician position goes unfilled — by the days, by the number of searches conducted, and by annual revenue lost.
You’ll also see the dramatic cost difference that shortening time-to-fill — by just 5% — can make on your bottom line. Though many people understand the benefits of strong recruitment, rarely do they have an actual figure or goal to strive for.
Run the Numbers
Ask your CFO or organizational decision maker to provide you with the numbers below for your organization, or have him or her join you and enter the numbers together to calculate the lost revenue of a missing physician. If you don’t have any of this information, you can review the national averages.
Avg. net physician revenue per year:
Avg. time-to-fill a physician vacancy:
Number of searches per year:
Target % reduction in time-to-fill:
Don’t worry about the formatting in these boxes. Just enter your numbers and we’ll take care of the formatting.
Results:
A reduction in time-to-fill will result in:
in increased net revenue to your organization.
Calculation Details:
These calculations use your numbers from above. You can continue to change them and the calculations will update.
÷ 365 days = average net physician revenue per day
days average time-to-fill × (100% − ) improvement in time-to-fill = days reduced time to fill
days average time-to-fill − days reduced time-to-fill = days, (a reduction in time-to-fill)
average net physician revenue per day × days in reduction in time-to-fill = increase in net revenue per physician
increase in net revenue per physician × searches performed per year = increase in organizatonal net revenue
Next Steps
Now that you’ve seen the significant difference just a small reduction in time-to-fill can make for your organization, why not get in touch with ab+c?
We are highly experienced physician recruitment experts who can help you develop, implement and track a very successful — and profitable — recruitment marketing campaign.
We do it for some of the most recognized hospitals and healthcare organizations in the nation, every day.
Shawn Kessler
Partner — Recruitment Division
To learn more or to put our experience to work for you, call Shawn Kessler at 800-848-1552, or request a callback here:
Need Help? Start with the National Numbers:
We developed the formula for calculating lost physician revenue using three national averages as reported by the Association for Advancing Physician and Provider Recruitment and leading recruitment consultants Merritt Hawkins.
$2,133,273
The national average for physician revenue—as provided by Merritt Hawkins’ 2019 Survey of Physician Inpatient/Outpatient Revenue .
161 Days
The average time-to-fill a physician vacancy, which is the average across all physician specialties—as reported by the AAPPR.
40 Searches
The typical number of searches performed by an organization per year—as reported by the AAPPR.
An Example with National Averages
An example calculation: This example shows how improving an organization’s time-to-fill by just 5% (or 11 days) will add nearly $1 million in net revenue.
$2,133,273 ÷ 365 days = $5,845 average net physician revenue per day
161 days average time-to-fill × (100% − 5%) improvement in time-to-fill = 153 days reduced time-to-fill
161 days average time-to-fill − 153 days reduced time-to-fill = 8 days, (a 5% reduction in time-to-fill)
$5,845 average net physician revenue per day × 8 days in reduction in time-to-fill = $46,757 increase in net revenue per physician
$46,757 increase in net revenue per physician × 64 searches performed per year = $2,992,427 increase in organizatonal net revenue
Now you’re ready to calculate your own organization’s revenue lost for a missing physician.
For more in-depth information about these numbers, check out the AAPPR In-House Physician and Provider Recruitment Benchmarking Report