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Locum Tenens: A Cost-Saving Solution

As recruiting costs and physician wages continue to increase, many healthcare organizations are faced with the challenge of balancing cost savings and quality care. With locum tenens, patient care doesn’t have to be compromised when reducing the annual cost spent on hiring physicians. Since 1989, D&Y has been helping healthcare facilities like yours increase revenue by reducing the costs associated with staffing.

 

Associated Costs of Hiring Physicians

Effectively onboarding a physician is not only challenging, it’s a heavy investment for a hospital.

 

RECRUITING COSTS
Up to $88,000 per physician
Recruiting physicians is a costly, labor-intensive process. By contracting physicians with a staffing company, healthcare facilities can significantly cut costs associated with recruiting, including interviewing, sign-on incentives and relocation bonuses.

 

 

 

MALPRACTICE INSURANCE
Up to $100,000 per physician annually

The cost of malpractice insurance for physicians can reach up to $100,000 annually. Staffing agencies cover this cost for the locum tenens providers that they send to your facility.

 

 

 

 

PHYSICIAN COMPENSATION
Up to $400,000 per physician annually
Among annual salary, insurance and other benefits, hospitals can expect to spend up to $400,000 per year on each full-time physician. Healthcare facilities do not supply a benefits package or annual salary to locum tenens providers, thereby reducing the annual physician compensation costs for hospitals.

 

 

 

LOST REVENUE
More than $1.5 million per physician annually
The hard costs of hiring a full-time physician are significant, but the expense of a physician vacancy at a facility is even more costly. Locum tenens providers can fill staffing needs in the long or short-term, ensuring that your healthcare organization has the resources necessary to provide all of its patients with quality care.

 

 

Save With Locum Tenens

At D&Y, we provide a customized staffing solution designed to provide significant cost savings. Hiring locum tenens providers to fill staffing needs allows healthcare organizations to focus on what’s important: providing quality patient care. By eliminating recruiting costs, malpractice insurance, physician compensation and minimizing lost revenue, locum tenens providers are a smart option for facilities of all sizes.

 

Partner with D&Y to get the right support to better serve your patients and communities.

 

Sources
1 Association of Staff Physician Recruiters (ASPR)
2 Gallagher Medical Practice (link)
3 Doximity (link)
4 Referral MD (link)

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