Cost of Psychiatrist Recruitment
December 27, 2013
The cost of recruiting psychiatrists is often not fully understood and can be extremely costly. How much money does it take to attract and retain a psychiatrist? By answering this question, hospital and clinic administrators can better understand the psychiatrist recruiting process and help ensure that their hospitals and clinics understand the costs associated with recruiting. The cost for one search generally falls in the range of $20,000 to $40,000 depending on the specialty, region of the country, and methods used for sourcing candidates. The average cost is about $30,000. Here is a breakdown of the major costs associated with psychiatrist recruitment.
1. Staff or Recruiter Time and Fees � Salaries and fees associated with recruiter time can vary greatly. A recent MGMA (Medical Group Management Association) study found that it takes about 350 man-hours for the recruiting process. In-house recruiters often earn a base salary of $35,000 to $65,000 and may receive bonuses based on the number of placements they make. If the salary is $50,000 and the 350 man-hours mentioned above are used, that's $8,400 per recruited doctor. Recruiter fees of contingent and/or retained physician search firms can range from $15,000 to more than $25,000 per placement.
2. Recruiting Sources � Thousands of hospitals and medical groups are vying for a limited number of psychiatrists, increasing the difficulty and cost of finding candidates. A wide net should be cast to ensure a job opportunity attracts the largest number of potential candidates. This means collaborating with residency programs, networking among existing staff and administration, advertising in medical journals and on physician web sites, sending recruiting letters and direct mail pieces, and exhibiting at physician conventions. The expense can range from $2,500 to more than $10,000 per search.
3. Interviewing � The higher the number of candidates you see, the higher the costs, and not only in terms of airfare and hotel suites, but in terms of the man-hours of busy administrators and medical staff getting together however many times. Hospitals and clinics generally pay all the costs associated with a physician interview such as travel, accommodations and entertainment. These costs usually range from $ 2,000 to $3,000 per interview.
4. Relocation � This is another variable cost based on where the psychiatrist is coming from. The average relocation allowance is $ 15,000.
5. Set-up Costs � Although initial set-up costs are not normally considered a part of the recruitment cost, they may contribute to your hesitation in moving as quickly as you should in recruiting. The costs to help the doctor set up practice, plus whatever signing incentives are offered, can be from $150,000-$200,000.
6. Salary Guarantee � Salary guarantees and incentives should be factored in as part of the recruitment investment/return equation. Recruiters should take into account not only new psychiatrists� salaries but also signing incentives and loan repayments. These costs vary widely and can range from $150,000 to $600,000.
7. Sign-On Bonus� Sign-on bonuses typically range from $30,000 to $40,000.
8. Time-to-Fill � If you are unsuccessful in recruiting a psychiatrist in a timely manner, the cost of recruitment will be much higher. Administrators need to look at the time it takes to fill a position and then consider the revenue lost during this time. Intuition might suggest that you are saving money on the salary and benefits until you hire a psychiatrist. However, every month without a psychiatrist in place equals revenue lost. A recent conducted survey of hospital CFOs found that psychiatrists generate an average of more than $2,216,463 a year in patient revenue. In the long run, it�s the cost of inaction that�s highest.
How Can Recruitment Costs Be Minimized
Telepsychiatry has become increasingly popular across the country and eliminates the high costs associated with traditional recruitment. Telepsychiatry can eliminate most of the costs listed above. e-Psychiatry provides telepsychiatry services for clinics, hospitals and other mental health facilities with no upfront fees or set-up costs. e-Psychiatry has many psychiatrists on standby that are licensed all across the country. Interviews can be conducted remotely though video conferencing with no need for the psychiatrist to travel to the interview. There are no relocation costs when utilizing telepsychiatry and psychiatrists can conduct appointments remotely from their current home or office. Salaries for telepsychiatrists range from $150,000 to $300,000 per year. There are no sign-on bonuses and e-Psychiatry can place a psychiatrist at mental health facilities quickly. For more information on e-Psychiatry�s service contact Stephen Maddaloni, Co-Founder of e-Psychiatry, at Stephen@e-Psychiatry.com or go to www.e-Psychiatry.com.