According to the Merritt Hawkins report, physicians new recruiting engagement dropped by over 30% compared to last year. Also, new physicians’ compensation is likely to denied temporarily due to a pandemic situation.
Merritt Hawkins’ 2020 Review of Physician and Advanced Practitioner Recruiting Incentives reveals a number of trends within the physician and advanced practitioner recruiting market.
Due to the COVID-19 pandemic, physicians had various practice opportunities in the buyer’s market where they had a choice to choose one. In seller’s market physicians may have to compete for job openings. This biggest change took place in just 60 days.
While the number of physician search engagements Merritt Hawkins conducted increased during the one-year period ending on March 31, 2020, search engagements took on by Merritt Hawkins have decreased by more than 30% since, underscoring how the market for physicians has changed.
Primary care physicians have remained in demand in the pandemic situation also. A growing volume of physicians recruiting activity changing to medical specialties. According to Merritt Hawkins’ 78% physicians search engagements tracked in the year 2020 review were for medical specialists, up from 67% five years ago, while 22% were for primary care. Demand and compensation for specialists also will change as a result of Covid-19 in response to denied in the volume of medical procedures.
Source: Merritt Hawkins’ 2020 Review of Physician and Advanced Practitioner Recruiting Incentives
According to Travis Singleton, executive vice president with , “Over our 33-year history, most physicians had little difficulty finding a job opportunity, with multiple offers to choose from. Today, we are seeing a growing number who are unemployed with a limited number of roles available. This is unprecedented. COVID-19 essentially flipped the physician job market in a matter of 60 days.”
Industry experts want the momentum to continue, the COVID-19 pandemic has led to the most US healthcare spending decline since 1959, Merritt Hawkins reported using data from the Department of Commerce.
Merritt Hawkins report indicates that the decrease in demand for doctors is like to be temporary. Physicians supply and demand will remain in the healthcare industry, with growing and aging population. COVID-19 will not affect these market conditions, and demand for physicians will start to accelerate before the end of year, the report projects.
The average starting salary for family doctors were $240,000 before the pandemic. If we compare this salary to an average of $423,000 for radiologists, $464,000 for urologists, $640,000 for invasive cardiologists, and $626,000 for orthopedic surgeons.
Report state that compensation for new positions of physicians across the care spectrum will be flat.
Telehealth reimbursement rates might be impacting new physicians’ compensation as organizations pivot to more virtual care. Physicians productivity and quality measures will change as they are moving to telehealth. Physician productivity was factored into new physician compensation in about 64 percent of contracts prior to the pandemic.
Growing physician shortage will create a pressure on the healthcare industry. The Association of American Medical Colleges recently projected the physician shortage to hit between 54,000 and 139,000 physicians by 2033, emphasizing the short amount of time “before physician shortages again become the status quo,” Merritt Hawkins stated.Back