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.
To get the most from this information, we recommend you view the content and calculations in the order they are presented. You’ll first see an explanation of national average numbers, followed by an example calculation using them, followed by a template that you can fill in using your own numbers to quickly calculate revenue lost due to a missing physician.
We developed the formula for calculating lost physician revenue using three national averages as reported by the Association of Staff Physician Recruiters and leading recruitment consultants Merritt Hawkins.
The national average for physician revenue — as provided by Merritt Hawkins’ 2013 Survey of Physician Inpatient/Outpatient Revenue.
The average time-to-fill a physician vacancy, which is the average across all physician specialties — as reported in the 2012 ASPR Benchmarking Survey.
The typical number of searches performed by an organization per year — as reported in the 2012 ASPR Benchmarking Survey.
Now that you understand the origin and significance of the numbers, you’re ready to work through our example that uses them. Then see what a difference reducing time-to-fill by just 5% can make.
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.
$1,404,980 ÷ 365 days = $3,849 average net physician revenue per day
222 days average time-to-fill × (100% − 5%) improvement in time-to-fill = 211 days reduced time-to-fill
222 days average time-to-fill − 211 days reduced time-to-fill = 11 days, (a 5% reduction in time-to-fill)
$3,849 average net physician revenue per day × 11 days in reduction in time-to-fill = $42,339 increase in net revenue per physician
$42,339 increase in net revenue per physician × 23 searches performed per year = $973,797 increase in organizatonal net revenue
Now you’re ready to calculate your own organization’s revenue lost for a missing physician.
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.
Don’t worry about the formatting in these boxes. Just enter your numbers and we’ll take care of the formatting.
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
A reduction in time-to-fill will result in in increased net revenue to your organization.
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.
To learn more or to put our experience to work for you, call Chris Connolley at 800-848-1552 or request a call back: