For physicians coming out of residency, the process of evaluating job offers can be demanding, so comparing signing bonuses and other recruiting incentives might seem like a good way of separating the wheat from the chaff. A recruiter cautions against taking such a simplistic approach.
The most recent survey of physician recruiting incentives by recruitment firm AMN Healthcare found that the average physician signing bonus was $38,315, up 23% from 2024, and the average relocation allowance was $12,019, up 12%. On average, physicians were offered $58,854 in signing bonuses, relocation allowances and CME benefits.
“This is a key indicator of how competitive the physician recruitment market is,” said Alex Herbison, vice president at AMN Healthcare’s Physician Solutions division, formerly known as Merritt Hawkins. “There are so many opportunities out there, and this is a direct indication of employers’ thinking: How do we separate ourselves, and when we can't change geography, what are the other key incentives we can offer?”
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Don’t be seduced by any one number
But there is a catch that resident physicians eager to get a big bonus as they transition to practice should keep in mind. What isn't captured in the survey is the value of other terms of employment, such as call requirements and schedule flexibility, Herbison noted.
“Those should be considered alongside the raw numbers showing up on your W2,” he said.
It is, therefore, crucial to understand what is most important to you as you start your career.
“Most physicians transitioning to practice will have at least 10 opportunities to consider,” Herbison said, adding that employers can offer a huge variety of incentives. “The average medical school debt that physicians are coming out with is over $200,000. So depending on your specialty, you may look at that first opportunity and say you want loan forgiveness. We've seen loan forgiveness running from as low as $50,000 to as high as $200,000. I've even heard of $250,000 forgiven over five to seven years.”
But even more important is answering: What are you trying to accomplish in your specialty?
“Nowadays, it's not just about the money. It's also about paid time off and a flexible work schedule. It’s about telehealth. And it’s about the practice setting,” he said.
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More than one-third of AMN Healthcare’s searches over the past year involved positions working directly with hospitals in an employment model. Another 10% were with urgent care and retail clinics. Even insurance providers are now employing physicians for utilization reviews, and private equity is making inroads in specialties such as gastroenterology, dermatology and orthopedics.
“Physicians transitioning to practice really need to look at what is most important to them,” Herbison said.
Learn more with the AMA STEPS Forward® toolkit, “What to Look for in Your First or Next Practice.
Evaluate the Practice Environment to Match Your Priorities.” It is enduring material and designated by the AMA for a maximum of 0.5 AMA PRA Category 1 CreditTM.
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Implications for private practice
Final-year residents with offers on the table might rightly shy away from the financial risks involved in working for themselves. Herbison said choosing a practice setting all comes down to your long-term goals.
“Private practice can be very lucrative. The key issue with private practice is that, typically, you will get started through a partnership track at an existing practice, and in most cases that requires a buy-in. Plus you’re going to have to build some of your patient base,” he said. “But there’s the potential for very large earnings, in many cases, much more than what you can get through a hospital-employed model.”
In fact, private practice has seen a lot of turnover since the start of the COVID-19 pandemic. Some physicians jumped into the employment world for the security only to jump back into the private practice setting for the autonomy.
“There are so many opportunities for new physicians,” Herbison said. “I really urge them to do some soul searching on what is most important to them, knowing all of the different facets and factors going into an opportunity and the setting that they'd be stepping into so that they pick the right one.”
If you are in the search for your first physician job after residency, get your cheat sheet from the AMA now.
