Physician supply and demand: to recruit physicians in today's hot specialties, employers are being forced to open their minds as well as their wallets

Townsend Letter for Doctors and Patients,  August-Sept, 2002  

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Recently, a large multi-specialty group in the Midwest, seeking to hire a gastroenterologist, was surprised that their offer of $250,000 elicited no suitable candidates. It wasn't until they sweetened the pot to $350,000 -- plus a $35,000 signing bonus -- that the caliber of physician they sought came knocking. The group then ended up hiring two GIs.

Another large group in the Southwest, aggressively recruited for a full-time OB-GYN, only to happily settle for two well-qualified part-time OBGYNs who will job share the position.

In-house recruiters, human resource executives and physician executives seeking doctors in hot specialties are discovering that superstar salaries -- and a willingness to entertain nontraditional working arrangements -- are becoming a new recruitment tool, especially for difficult to recruit specialties. Carol Westfall, President of Cejka and Company, told an audience at the American College of Physician Executives Spring Institute on Health Care Leadership, held in San Diego on April 16.

In 1998, a multi-specialty group in the Northeast seeking an orthopedic surgeon would have had to offer $170,000 in salary. Today, it's $280,000. Westfall informed the gathering of physician executives, even though the demand for orthopedic surgeons isn't as keen as it currently is for cardiologists, anesthesiologists and radiologists.

Another Cejka client offered an interventional radiologist an $80,000 signing bonus. Outrageous? Not for a high-demand specialist today, Westfall observed.

In rural areas where recruiting specialists is a challenge -- as well as in suburban areas, where competition for certain specialists is high, hospitals, HMOs, physician groups and other employers are even entertaining such concepts as job sharing and flex-time. That's because a significant number of qualified candidates in a seller's market are younger physicians who also want a life apart from medicine and seek part-time work.

Hot Specialties

In 2001, anesthesiology, cardiology, dermatology, gastroenterology, hematology/oncology, pulmonology/critical care, and radiology were hot specialties for Cejka clients, Westfall said. In 2002, increasing demand is expected for otolaryngology, urology, endocrinology, pediatric sub-specialties, and neurology. "Most of the in-demand specialties are oriented toward an aging population, as well as increasingly astute patient consumers who are seeking more preventive healthcare services," Westfall said.

She offered two quick snapshots of the current marketplace for physicians:

* Primary Care. In the mid-1990s, as health plan gatekeepers and primary care doctors made significant compensation gains, between 1998 and 2001, those gains leveled off, now averaging $150,000 a year. Over 75% of hospitals are in the market for primary care doctors, so demand is healthy but compared to four or five years ago, the supply has stabilized and the urge to hire is less compelling than it is for other specialists.

* Sub-specialists. Although demand for specialists is strong almost across the board for cardiologists, anesthesiologists and radiologists, it's now especially keen, Westfall said.

In 1998, a third of cardiology positions filled by Cejka commanded a starting salary of $200,000 or higher. In 2001, nearly 90% did -- in fact, 42% of Cejka cardiology candidates who accepted jobs received starting salaries of $250,000 or higher.

"In 1998 we could still hire pulmonologists for under $150,00," Westfall said, recalling how specialist salaries had increased significantly in three years in response to supply and demand. "In 2001, they all were coming in at $160,000-$200,000."

In addition to cardiologists; anesthesiologists, radiologists, gastroenterologists, hematologists/oncologists, general surgeons, neurosurgeons and cardio-thoracic surgeons all command top dollar in today's market, Westfall said.

Cejka & Company is a healthcare search firm offering physician practice opportunities, healthcare employment opportunities, and physician and executive search services. Established in 1981, Cejka & Company serves healthcare organizations throughout the country including hospitals, groups, managed care organizations, practice management companies, academic medical centers, and health systems. Cejka & Company is a subsidiary of Cross Country, Inc. (NASDAQ: CORN), a leading provider of healthcare staffing and human capital management services.

For more information contact Geoff Staub, Cejka & Company, 222 South Central Avenue, St. Louis, Missouri; 800-678-7858; fax 314-726-0026; Email: gstaub@cejka.com; Website: www.cejka.com.

COPYRIGHT 2002 The Townsend Letter Group
COPYRIGHT 2002 Gale Group