CLE
Clinical Labor
Economics
Cost Savings & ROI

Physician Vacancy Cost Calculator

Most CFOs see only the locum line item. This calculator surfaces the full cost of a physician vacancy — lost revenue, locum premiums, downstream leakage, and administrative burden — so you can build the business case for faster recruitment.

Vacancy Parameters

Daily revenue benchmark: $4K · Locum premium: 38% · Avg TTF: 68 days
2
90d
National average for Hospitalist: 68 days — 22 days above average
70%
Remaining 30% of vacancy days generate no revenue
$35K
Includes agency fees, signing bonus, relocation, and onboarding time
Methodology

Revenue benchmarks derived from MGMA and AMGA physician productivity data. Locum premiums reflect 2024 national averages by specialty. Downstream leakage estimated at 22% of direct revenue loss based on health system referral network analysis. Administrative burden modeled at $85 per vacancy-day.

Total Vacancy Cost
$438K
for 2 Hospitalist positions open 90 days
Cost Per Day
$2K
Annualized Run Rate
$1.78M
TTF Savings Opportunity
$127K
Cost Breakdown
Lost Revenue (Uncovered Days)$227K
30% of vacancy days uncovered × $4K/day
Locum Premium Cost$76K
38% premium over permanent physician cost
Downstream Revenue Leakage$50K
Lost referrals, downstream procedures, and ancillary revenue
Administrative Burden$15K
Credentialing, scheduling, HR overhead per vacancy day
Recruiting & Onboarding$70K
$35K per hire × 2 positions
The Case for Faster Recruitment

Reducing your time-to-fill by 40% — from 90 to 54 days — would save approximately $127K across your current open positions. That is the ROI of investing in a stronger recruitment infrastructure.

Savings calculated from reduced uncovered days, lower locum premium exposure, and reduced administrative overhead over the shortened vacancy period.

The Intelligence Desk

Physician Workforce Economics

Grounded in published articles · Not financial or legal advice