Delays in onboarding physicians cost large U.S. health systems over $15 billion per year in lost revenue, exacerbating patient access challenges, resulting in long wait times, and patient leakage. This also adds to the administrative burden physicians are often consumed with, leading to higher rates of physician discontent and burnout.
Estimates are based on data compiled from U.S. healthcare systems including a 2019 Merritt Hawkins study conducted across approximately 3,000 hospital chief financial officers (CFOs) and other financial managers nationwide. That study found the average annual revenue generated by a physician is $2.4 million, or $9,230 a workday. Our model applies a 50 percent discount to this number to accommodate for ramp-up during a physician’s first two months of work, placing the daily average workday revenue potential for a physician at $4,615.
This model also takes into account an 8-week average allowance for notice for the portion of physicians that must give notice to a previous employer.