During the last San Juan Hospital board meeting in Blanding Utah on February 27, 2014 the board spent a great deal of time focusing on the financial problems the hospital has found themselves in lately. The on thing that wasn’t addressed was the expense to the hospital in replacing 3 physicians. According to an article I found there are a number of direct and indirect costs associated with the employment of a physician.
The article titled The Hidden Costs of Declining Physician Engagement, outlines the cost of replacing a physician along with the best solution to avoiding this cost.
The article states that:
When the costs of recruiting, start up, and lost revenue generation are figured in, the cost to replace a single employed physician often exceeds $500,000. (This is without adding in fees for sourcing and advertising, interviewing, moving and signing bonuses.)
Based on this article by Dan Smith MD the hospital will be looking at a minimum of $1.5 million dollars to replace the 3 physicians that are leaving. According to the article the best solution to avoiding these costs are:
Engage physicians in a partnership that truly serves patients and physicians, and provides them a great place to practice medicine. In turn, physicians will feel a sense ownership and alignment to the organization and they can enjoy purpose, worthwhile work, and making a difference.
For some additional information: