Medicine is still a calling, but recruiting providers is twice as hard today; as many as 1,300 new employers vie for the same talent pool
by Intelliworx
If you want to solve a problem, then you’ve got to spend a lot of time understanding it. That’s why we invest a lot of effort into pouring over healthcare industry surveys and studies. We’ve even fielded one or two of our own.
More recently, we filtered through several dozen reports looking for statistics and benchmarks that summarize the healthcare recruiting challenges facing the community. Below is a tidy list of such statistics that are organized around these categories:
- General healthcare labor statistics
- Provider recruiting and retention statistics
- Rural healthcare recruiting statistics
- Healthcare compensation and benefits statistics
- Nursing recruiting and retention statistics
General healthcare labor statistics
1. U.S. healthcare will be short 86,000 physicians by 2036
The Association of American Medical Colleges (AAMC) estimates the U.S. “will face a physician shortage of up to 86,000 physicians by 2036.” The organization says an aging population, which requires greater access to healthcare, is among the most significant contributing factors.
Age is also affecting the physician workforce. The AAMC says, “Physicians aged 65 or older are 20% of the clinical physician workforce, and those between age 55 and 64 are 22% of the clinical physician workforce.” Many will begin to retire, which stands to complicate the shortage.
Source: New AAMC report shows continuing projected physician shortage via the AAMC
2. 48% of hospital executives say their facility is understaffed
“Nearly half (48%) of hospital executives” surveyed by FTI Consulting find that many “believe that their hospitals are not fully equipped to handle current patient volumes.”
More specifically:
“Executives report that the most significant gaps this year were found to be in specialists (49%), followed closely by nursing (46%). Mental and behavioral health providers (45%), and advanced practice providers (45%) were also highlighted as experiencing shortages. This underscores the growing need to recruit specialized professionals beyond physicians.”
FTI says 69% of executives are responding to this by increasing their “agency utilization” and hiring temporary staff. This “signals a major shift away from retention bonuses,” which was the top strategy for solving understaffing in the same survey the previous year.
Source: 2025 U.S. hospital operations survey report via FTI Consulting
3. 58% of health executives expect talent shortages to continue
A survey of “80 C-suite executives from large health systems and health plans in the United States” by Deloitte Center for Health Solutions suggests the talent shortage will continue:
“More than half (58%) of health system executives expect workforce challenges, such as talent shortages, the need for upskilling, and retention issues, to influence their organizational strategies in 2025.”
While the shortage is still critical, the survey suggests it’s easing. This number is down considerably from 85% two years ago, in a prior survey also conducted by Deloitte.
Source: 2025 US health care outlook via Deloitte Center for Health Solutions
4. 50% of healthcare leaders plan to leave within 12 months
B.E. Smith Leadership Solutions, a subsidiary of AMN Healthcare, polled 588 healthcare professionals in leadership roles and found many are pondering leaving.
The survey found that while most leaders (79%) are generally satisfied with their positions, nearly half (46%) of those surveyed plan to leave their current role in the next 12 months. Further, more than 6 in 10 respondents (65%) said they plan to leave in a 3-to-5-year window.
It seems many have the opportunity to do it as well: 74% of healthcare leaders surveyed said they have been approached with a new job offer recently.
Source: New survey finds healthcare talent woes spreading to leadership via Intelliworx
Provider recruiting and retention statistics
5. Recruiting physicians will get 2-3x more competitive
We used Porter’s Five Forces model to evaluate the competition healthcare faces for talent. One observation is that there are a lot of new entrants in medicine who are vying to hire providers. These include:
- Retail chains are opening clinics for routine care;
- Franchise urgent care clinics have sprouted nationwide;
- Insurance carriers are offering health services and employ thousands of providers; and
- Private equity has made thousands of acquisitions in health care.
Austin Chatlin, who is a managing director at CHG Healthcare’s advisory services, can quantify the number of competitors in the market today. He says there are 1,300 new organizations trying to attract and retain providers.
The net effect?
“If you’re going to be recruiting physicians over the next five years, it’s going to be two to three times harder to recruit and retain a physician than it has been.”
Source: Strategic recruitment of physicians in an increasingly competitive market via CHG Healthcare
6. Medicine is still a calling
It’s important to understand motivations in recruiting. To that end, the vast majority of physicians and advanced practice providers (APPs) “saw medicine as a calling when they began their careers,” a survey found.
Jackson Physician Search and LocumTenens.com teamed up to poll 1,200 clinicians, which also found differences in the generational appeal of a career in medicine:
“Baby Boomers report a strong sense of calling and the highest levels of passion for their work. Gen Z is motivated to pursue medicine by a desire to serve humanity.”
The top reasons providers are attracted to medicine include the following:
- 73% said helping others or serving humanity;
- 56% said intellectual challenge and life-long learning;
- 34% said job stability;
- 25% said encouragement or inspiration from family or mentor;
- 21% said personal experience with healthcare;
- 21% said financial rewards;
- 18% said scientific acumen;
- 10% said prestige;
- 7% said desire to fight or cure specific diseases; and
- 4% said other.
However, the survey also found that about half of the clinicians surveyed say that calling fades over time. Further, 30% “plan to leave their current employers in the next one to three years.” Healthcare recruiters should also note:
“Clinicians who see medicine as a calling are more likely to say they plan to stay with their current employers.”
Importantly, other studies show that needs and priorities naturally evolve over the course of a career. For example, when first out of school and faced with student loans, compensation is an understandable priority. As a provider settles into their career, the balance between work and life becomes more important.
Source: Is medicine still a calling? Exploring physician attitudes about purpose in medicine by Jackson Physician Search and LocumTenens.com
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7. 125 days to hire a PCP; 135 for a specialist
It takes an average of 125 days to fill a primary care physician (PCP) vacancy. Specialists take even longer – 135 days – according to the Association for Advancing Physician and Provider Recruitment (AAPPR).
However, that’s just the beginning. Licensing and credentialing for a newly hired physician “easily adds another 4-6 months on top of days to fill.”
AAPPR had 150 member organizations participate in its annual study, the latest of which was published in late 2024. The organization represents some 17,000 searches for healthcare vacancies. About six in 10 (58%) of those were for physicians.
Source: 2024 AAPPR internal physician and provider recruitment benchmarking report via AAPPR
8. It takes 6-18 months to hire a physician
Based on data from their ROI calculator, Jackson Physician Search estimates it takes between six and 18 months to fill a physician vacancy. While some placements can take less than 90 days, the recruiting firm also points out that others can take more than 18 months to fill.
Source: How to control the physician recruitment timeline via Jackson Physician Search
9. The cost to recruit a physician ranges from $180,000 to $250,000
PracticeMatch, which has offered physician recruiting resources, including a job site, estimates the costs of recruiting a physician range from $180,000 to $250,000. It gets to this number by totaling the direct costs and the expense of recruiting incentives.
Direct costs of recruiting a physician:
- “Search firm fees or in-house staff costs: $18,000 – $35,000”;
- “Sourcing and marketing costs: $6,000 – $12,000”;
- “Candidate site visit and interview expenses: $9,000 – $15,000 (for 3 candidates)”; and
- “Relocation expenses: $5,000 – $15,000+.”
Costs associated with recruiting incentives:
- “Residency or fellowship stipends: $12,000 – $36,000+”;
- “Sign-on bonuses: $20,000 – $100,000+”;
- “Education loan repayment assistance: $25,000 – $100,000+”;
- “Housing assistance: $50,000 – $100,000+”; and
- “Retention bonuses (per year): $10,000 – $50,000.”
Source: The actual cost to recruit a physician in 2024 via PracticeMatch
10. Lost revenue from physician vacancies can cost millions of dollars
A study by AMN Healthcare says the cost of physician turnover can “run into the hundreds of thousands of dollars.” The organization gets to that figure by adding up all the related costs, salary aside, of searching for a new Gastroenterology specialist:
- $46,000 in signing bonus;
- $50,000 in benefits/perks;
- $30,000 in recruiters fees (in-house or agency);
- $15,000 in candidate sourcing;
- $3,000 in candidate/spouse interview;
- $10,000 in physician relocation; and
- $3,000 in practice marketing.
Adding those numbers puts the total cost in excess of $150,000, which isn’t far from the PracticeMatch estimates above. However, AMN notes the lost revenue that accompanies a physician vacancy.
A vacancy in General Surgery costs $11,669,016 in lost annual billings; here’s how lost billing in other specialties might add up:
- Orthopedic Surgery: $9,809,514
- Critical Care: $6,677,319
- Urology: $5,886,763
- Gastroenterology: $5,530,221
- Otolaryngology: $4,190,555
- Obstetrics/Gynecology: $3,761,777
- Rheumatology: $3,410,281
- Cardiology: $3,406,027
- Anesthesiology: $3,329,020
Source: The cost of physician turnover and the economic impact of physicians via AMN Healthcare
11. 44% of providers have considered quitting over insurance demands
Some 44% of healthcare providers have considered leaving their position as a result of the insurance demands, according to a survey of 211 U.S.-based healthcare providers.
Why? It’s a tedious task that takes time away from what they want to do: practice medicine.
Nearly half (45%) said they are required to spend too much time on insurance matters. And about five in 10 believe their employers could do more to address insurance demands.
Source: Healthcare providers express frustration with payers over denied treatments [survey] via Intelliworx
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12. About 19% of MDs over the age of 65 experience ageism
A survey of 6,042 medical doctors conducted by the American Medical Association (AMA) found that ageism is a problem among those over the age of 65. An analysis of open-ended responses found that 18.8% were “treated as irrelevant or dismissed, disrespected, or made to feel invisible.”
Some respondents also noted they felt their younger peers “assumed” them to be “physically unable” (15.5%) or “cognitively incompetent” (6.2%). About 15% also indicated these perceptions were adversely affecting their career advancement.
Source: Experiences of ageism among senior physicians: A qualitative study via American Medical Association
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Rural healthcare recruiting statistics
13. New physicians are less likely to accept a rural position
An analysis of 31,925 graduating residents, including 16,612 who accepted new positions, found they were less likely to accept a position in a rural location.
The study led by Harvard Pilgrim Health Care Institute found:
“The likelihood that participants would accept a position in a rural area fell from 3.4% to 0.62%, reversing pre-pandemic gains.”
The same analysis also found that rural physicians were slightly less likely to be receive incentives and were less satisfied with their compensation.
Source: Effects of the COVID-19 Pandemic on New Physician Job Market Outcomes via Harvard Pilgrim Health Care Institute
14. Why physicians prefer to practice in urban areas
In a white paper analyzing healthcare trends, AMN Healthcare writes, “Surveys show that only 3% of newly trained physicians prefer communities with fewer than 25,000 residents, while a staggering 78% opt for communities with populations over 100,000.”
Why?
“Physicians tend to gravitate toward urban centers where opportunities for career advancement, lifestyle preferences, and spousal employment are more readily available.”
Source: The rural healthcare crisis: Strategies to strengthen the workforce and prevent hospital closures via AMN Healthcare
15. Just 4.3% of newly minted oncologists take a rural job
A study examining the location where newly minted oncology residents take their first job, between 2015 and 2022, found that just “4.3 percent of new radiation oncologists accepted their first jobs in rural counties.
Further, of that cohort, 40% “of these graduates were located in a nonmetro county not adjacent to a metro area.”
Source: New study shows most new cancer radiation oncology specialists work in big cities, not small towns via Mount Sinai
16. Rural areas have lost 2,500 independent physicians from 2019 to 2024
Rural areas have lost 2,500 independent physicians during a five-year period from 2019 to 2024. Similarly, the number of physician-owned practices in rural areas dropped by 3,300.
That’s according to a data analysis by the Physicians Advocacy Institute and Avalere, a healthcare consultancy. The study revealed the following findings:
- The volume of independent rural physicians declined by 43%;
- The volume of independent medical practices declined by 42%;
- The market share of independent rural physicians fell from 42% to 25%;
- The market share of independent medical practices declined from 58% to 38%
Conversely, the number of physicians employed by corporate-owned health systems increased by 10% – from 48% to 58%. Similarly, the number of “corporate-owned practices more than doubled from 11% to 23%.”
Source: Why are rural areas losing independent healthcare providers? via Intelliworx
17. Physicians are happier in independent practice
Bain & Company reported that 70% of physicians worked in independent practices 30 years ago, but today it’s less than half (47%). However, those working for physician-led organizations report satisfaction levels far above those of their peers who work for a health system:
“Their average satisfaction ranges from roughly 70% to 90%, compared to 50% to 75% in health-system-led practices.”
The graphic nearby visualizes a Net Promotor Score (NPS), a widely used measure of experience. The contributing factors include “fair compensation, adequate staffing and manageable workloads, leadership alignment, involvement in strategic decision making, and autonomy.”
Source: Boosting physician satisfaction: lessons from physician-owned practices via Bain & Company
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18. The top reasons providers choose rural health
Intelliworx surveyed 107 providers, based in the U.S. and through an independent panel, to ask about their motivations for working in a rural location. The reasons that attract providers to rural healthcare are:
- 47% said the lower cost of living;
- 46% said more time with patients;
- 45% said better work-life balance;
- 31% said slower pace of rural life;
- 23% said job security;
- 17% said a greater sense of purpose;
- 15% said cross-training and professional development;
- 11% said good organizational culture;
- 10% said more autonomy to manage work; and
- 10% said leadership opportunities.
Rural healthcare recruiters should consider appealing to these attributes when showcasing the benefits of their employment offer. To help, we’ve spelled out a simple one-page marketing plan for rural healthcare to attract providers that’s freely available (PDF version).
Source: Providers identify the top benefits of working in rural healthcare via Intelliworx
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Healthcare compensation and benefits statistics
19. Average starting salary for family physicians: $271,000
“The average starting salary for family physicians was up 6.27%” in 2024, from $255,000 in 2023 to $271,000.” That’s according to the 2024 Review of Physician and Advanced Practitioner Recruiting Incentives report by AMN Healthcare.
Nurse practitioners (NPs) saw a similar boost: “The average starting salary for NPs was up 8.6% year-over-year, from $158,000 last year to $164,000 this year, underscoring the strong demand for advanced practice nurses.”
Here are some of the other compensation benchmarks from the report:
- NPs range between $85,000 – $310,000 with an average of $164,000;
- Family physicians range between $120,000 – $460,000 with an average of $271,000;
- OBGYNs range between $275,000 – $700,000 with an average of $389,000; and
- CNRAs range between $235,000 – $416,000 with an average of $279,000.
The report has similar findings for other aspects of compensation, such as signing bonuses, relocation expenses and student loan assistance. For example, NPs and physician assistants (PAs) saw average signing bonuses of $11,758 – up from $8,355 a year prior.
Source: 7 observations showing how rural healthcare is overcoming the provider shortage via Intelliworx
20. PCPs earn a median of $300,000
The most recent compensation survey by MGMA found, “Median total compensation for physicians in primary care, surgical specialties and nonsurgical specialties saw modest increases in 2023, as well as total compensation for APPs.”
APPs, or advanced practice providers, which include nurse practitioners (NPs) and physician assistants (PAs) saw a pay jump of 6.47% and 4.44% for primary care physicians (PCPs).
In terms of median salary benchmarks, the report offers the following:
- Primary care physicians earned a little more than $300,000;
- Surgical specialist physicians earned about $550,000;
- Nonsurgical specialist physicians earned about $420,000; and
- APPs earned a little more than $120,000.
Source: Provider compensation: APPs see the biggest jump in pay via Intelliworx
21. Average signing and relocation bonuses
Salaries are just one part of the overall compensation healthcare employers can use to attract providers. A report by AMN Healthcare, which analyzed “a representative sample of the 2,138 permanent physician and advanced practitioner search engagements,” offers some average benchmarks:
- Average provider signing bonus: “The average signing bonus for physicians is $31,473, while the average signing bonus for NPs and PAs is $11,758”; and
- Average provider relocation bonus: “The average relocation allowance for physicians is $11,284, while the average relocation allowance for NPs and PAs is $7,910.”
Source: 2024 Review of Physician and Advanced Practitioner Recruiting Incentives via AMN Healthcare
22. Healthcare PTO offered ranges from 10-20 days
“In many medical practices, staff receive between 10 and 20 days per year, with accrual often increasing with tenure. This typically includes a combined PTO bank covering vacation, sick leave, and personal days, though some practices continue to offer separate sick leave.”
That’s according to MGMA, which also polled 403 healthcare workers in May 2025. That survey found that 21% of medical groups expanded those benefits in the last 12 months, while 77% did not and 2% were unsure.
With respect to holidays off, “Most practices also observe six to 10 paid holidays annually, including the major federal holidays.”
Source: How do you handle your medical practice staff’s paid time off and leave? via MGMA
Nursing recruiting and retention statistics
23. Compassion fatigue and burnout plague nurses
Most nurses (75%) “remain satisfied with their career choice,” however, many find a “contrasting reality” with their day-to-day work. A survey of 12,000 nurses found:
- “64% suffer from compassion fatigue”;
- “58% report feeling burned out most days”; and
- “33% are eligible for retirement this year.”
Retirement aside, just 39% plan to stay where they are, while nearly one in five plan to look for a new job. The remainder are considering alternatives such as returning to school (8%), finding an administrative role (6%), leaving for another field (5%), and working part-time (2%).
The report says there are 4.7 million RNs with current licenses in the U.S. and about 4.2 million are actively employed.
Source: Nurses speak out on burnout, balance, and the future of the profession in new survey via AMN Healthcare
24. 138,00 nurses have quit and 40% are planning to quit
A survey of 800,000 nurses, including registered nurses (RNs) and licensed practical nurses (LPNs) found “138,000 nurses left the workforce since 2022.” The survey, which was conducted by the National Council of State Boards of Nursing (NCSBN), also found that another 40% plan to leave by the year 2029.
Why?
The top reasons according to the survey are stress and burnout, heavy workloads, understaffing, inadequate salary and workplace violence.
Source: Research highlights small steps toward nursing workforce recovery; burnout and staffing challenges persist via NCSBN
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25. RN turnover costs an average of $61,000
NSI Nursing Solutions polled 450 hospitals from 37 states and found the average turnover rate for registered nurses (RNs) is 16.4%. Nationally, the “RN vacancy rate also remains elevated at 9.6%.”
The cost of filling those positions is high. According to the survey, “the average cost of turnover for a bedside RN is $61,110, an 8.6% increase” from the prior year. The authors say this results in average losses to a hospital of “between $3.9 million – $5.7 million” annually.
Source: National health care retention and RN staffing report by NSI Nursing Solutions, Inc.
26. Recruiting a nurse takes 3 months on average
The time it takes to recruit an experienced RN ranges from 62 to 103 days, depending on the specialty. That’s according to the same report by NSI Nursing Solutions, which has developed an “RN Recruitment Difficulty Index.”
The good news is that the index dropped three days in 2024. Unfortunately, the average is still high at 83 days. “In essence, it takes approximately 3 months to recruit an experienced RN, with step down and med/surg presenting the greatest challenges.”
Source: National health care retention and RN staffing report by NSI Nursing Solutions, Inc.
27. One-third of employers are boosting nursing compensation
Healthcare employers are increasing the compensation they provide to nurses, according to an MGMA survey of 256 medical group leaders. The survey found 34% reporting budgeting a larger increase than the year prior, while another 50% are providing the same increase as in 2024.
Source: Unpacking 2025 nurse compensation trends in medical groups via MGMA
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Getting organized and staying organized
If there’s a common denominator to be found underneath all of these statistics, we believe it’s organization. Recruiting in healthcare is a significant undertaking, and our research shows providers will reject an offer from an employer who comes across as disorganized.
That’s why we built a new software solution for healthcare recruiting: Healthcare Workforce Management. The product is designed with rural healthcare recruiting in mind because in our assessment, rural areas have the greatest need.
Contact us for a no-obligation demo.
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