Save millions by taking a proactive approach to staffing by focusing on retaining your talent and anticipating needs.
In today’s ultra-competitive market, smart healthcare delivery organizations have sought to improve their margins by capitalizing on strategic advantages and maximizing efficiencies. However, most organizations have yet to adequately address one inefficiency that costs millions of dollars annually—provider turnover. In fact, less than one-quarter of healthcare organizations measure the cost of provider turnover and/or have a plan in place to promote retention of their providers, despite the impact turnover has on the “Triple Aim”- cost, quality, and access of healthcare to communities.
Turnover carries a significant price tag. It’s been estimated that clinician turnover may result in losses of up to 6 percent of an organization’s annual operating budget, as many indirect costs often aren’t accounted for by organizations. Between the loss of clinic, inpatient, specialist referrals and ancillary services, the opportunity cost of losing a provider can add up to more than $1 million dollars. Add the direct costs of recruiting and onboarding a new physician, and the total cost of losing just one physician can equal nearly $1.3 million dollars.
|Loss of Downstream Revenue||$990,033|
|Estimated Recruiting Cost||$61,200|
|Average Annual Start-up Cost||$211,063|
|Total Turnover Cost||$1,262,296|
In addition to the costs, provider turnover invariably can reduce quality of care.
When providers leave practices, they often create a care gap that takes anywhere from three to six months to fill, if the role is filled at all. Once hired, physicians take approximately 11 months to “settle in.” NPs and Pas take up to 24 months to fully ramp up. So when a provider leaves, it could be a year-and-a-half to two years before the new provider is at full productivity. In some cases, a physician leaving means access dries up altogether, and not just in rural areas.
Despite the huge, indisputable costs, most healthcare organizations don’t measure the impact of turnover or have a proactive program in place to retain their best providers. A 2015 study found that only 24 percent of organizations attempted to quantify the real cost of provider turnover, and only 27 percent have a formal retention or onboarding plan in place. Considering all the implications, this problem deserves more attention.
Afferent Retention Consultants can help stem the flow of turnover and implement programs and processes that can transform your organization. Talk to an Afferent Consultant today to learn more and save millions.
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