Physician Turnover Cost Model
The full financial impact of physician turnover is rarely visible in a single line item. This model captures every cost phase — vacancy, credentialing gap, productivity ramp, replacement, and separation — so you can present the complete picture to your CFO and board.
Model Parameters
Revenue benchmarks from MGMA and AMGA physician productivity data (2024). Locum premiums reflect national averages by specialty. Downstream leakage estimated at 22% of direct vacancy revenue loss and 18% during credentialing, based on health system referral network analysis. Productivity ramp modeled from specialty-specific onboarding research. Agency fee estimated at 8% of annual compensation per industry standard.
Preventing just one of these 3 turnover events saves $686K. A physician retention program costing $34K/year per physician — 5% of replacement cost — pays for itself if it prevents one departure every 20 years.
MGMA and AMGA research consistently estimates total physician replacement cost at $500K–$1M+ per physician depending on specialty, market, and system size. Your model shows $686K per Hospitalist — within the expected range for a 68-day average time-to-fill.
The Intelligence Desk
Physician Workforce Economics
Grounded in published articles · Not financial or legal advice