Staffing challenges have become the norm for medical practices across the United States, especially for administrative and nonphysician roles such as front desk staff, contact center representatives, revenue cycle workers, medical assistants (MAs), nurse practitioners (NPs), physician assistants (PAs) and medical coders. This long-term disruption has placed added strain on remaining staff as well as increased demands on HR leaders and hiring managers within these organizations.
- Visit MGMA’s new Staffing and Retention Hub and take our poll on how much time you spend each week on recruitment efforts.
An Oct. 1, 2024, MGMA Stat poll finds that most medical group leaders (53%) point to finding candidates as their top staffing challenge this year, ahead of compensation and benefits (29%), retention (16%) and “other” (2%). The poll had 427 applicable responses.
Respondents were asked to share how these specific challenges have evolved in the past year:
- For practices struggling with finding candidates, 59% of practice leaders said this challenge worsened, while 31% said it was about the same as 2023. Only 10% reported improvement.
- Among respondents who cited compensation and benefits, nearly as many said it had worsened (45%) as those who said it stayed the same compared to 2023 (42%). About 13% reported improvement.
- Nearly six in 10 (58%) of respondents who said retention was their biggest challenge noted it had worsened this year, whereas about one in four (25%) said it stayed the same as in 2023, and 17% reported improvement.
Practice leaders told MGMA they had particular issues with recruiting candidates with existing jobs or sufficient experience, as other employers frequently matched their practices’ offer letters to lure candidates away. Other respondents noted that they struggle with all these issues, while relatively few who noted “other” pointed to ongoing efforts to cross-train workers to better handle unexpected turnover or attendance issues.
Recruitment challenges
Recruiting nonphysician staff has been one of the most pressing concerns for healthcare organizations. According to the U.S. Bureau of Labor Statistics (BLS), MA jobs are projected to grow by 15% between 2023 and 2033, much faster than the average for all occupations. However, the demand is outpacing supply, especially in rural and underserved areas, where the shortage of qualified candidates is even more acute.
One of the main reasons for this recruitment challenge is the competition with other industries. For instance, retail and service sectors, which have also been experiencing shortages, often offer similar wages with less stress and a better work-life balance. Many potential candidates for entry-level healthcare roles are drawn to these industries, leaving medical practices struggling to fill crucial positions.
The recruitment of more specialized roles, such as NPs and PAs, has also become increasingly difficult. The BLS projects nurse anesthetist, nurse midwife and NP jobs to grow 40% from 2023 to 2033. NP roles, as well as registered nurse (RN) and other advanced practice provider (APP) positions, have become especially crucial in filling gaps left by physician shortages, particularly in primary care, but the increased demand has led to fierce competition among practices and healthcare systems.
Compensation and benefits challenges
To combat recruitment issues, medical practices have had to re-evaluate their compensation and benefits offerings for nonphysician staff. Unfortunately, inflation and rising healthcare costs have limited the ability of many smaller practices to compete with hospitals or large healthcare systems. As noted in a September MGMA poll, more than one in three (35%) medical groups are budgeting more than usual for staff cost-of-living and merit increases.
Non-monetary benefits like flexible scheduling, paid time off, mental health support and professional development opportunities have grown increasingly important for these workers. However, few medical groups have updated their benfits in the past year to remain competitive with other industries.
Retention challenges
Staff retention has been challenging for practice leaders, who must balance worker well-being while asking their teams to take on increased workloads following recent years of abrupt employee departures.
For roles such as MAs and front desk staff, the demanding nature of the job — interacting with patients, managing appointments and ensuring smooth office operations — has led to higher rates of attrition. Many of these staff members have left traditional clinic office roles for more flexible opportunities in telehealth or administrative positions. The rise of remote healthcare options has provided alternatives for workers seeking better work-life balance, further complicating retention efforts.
Member benefit playbooks
These persistent challenges are the impetus behind a new series of MGMA playbooks, a member-benefit collection of data, tools, resources and insights in a linear, step-by-step guide to help you solve staffing problems.
Conclusion
Since 2021, staffing challenges in medical practices have intensified, particularly for nonphysician roles. Recruitment difficulties, rising compensation demands, burnout and increasing competition from other industries have created a perfect storm for healthcare administrators. To build a sustainable workforce that meets growing care demands, medical practices must adopt innovative strategies for recruitment, compensation and retention.
