A Sign of the Times – Demand for Psychiatrists Growing

Kurt Mosley, VP of Business Development, The MHA Group

Though it may not be a “dog bites man” story, I believe it is nevertheless telling that demand for psychiatrists today is growing faster than for any other medical specialty.

That is one finding of Merritt Hawkins’ latest annual survey of physician recruiting trends, which examines the incentives being offered to recruit doctors and indicates the types of physicians in most demand.  This is the 17th year Merritt Hawkins has conducted the national survey, which is widely used by hospital and medical groups to benchmark physician incentive packages.

The firm’s 2010 Review of Physician Recruiting Incentives tracks over 2,800 physician recruiting assignments Merritt Hawkins conducted nationwide from April 1, 2009 to March 31, 2010. During that period, Merritt Hawkins fielded 179 requests for psychiatrists, up 47 percent from the previous year and 121 percent from three years ago. The increase in demand for psychiatrists is noteworthy, because it is taking place during an economic recession which generally has inhibited recruiting of other types of doctors.

It is a fact of life when the economy goes down, mental health problems tend to go up. However; there is more to the rising demand for psychiatrists than the recession.  A combination of factors is driving a psychiatrist shortage which could soon reach crisis levels.

More than half of all psychiatrists are 55 years old or older and are nearing retirement age, while fewer medical school graduates are showing an interest in psychiatry. As the supply of psychiatrists decreases, population growth, population aging, economic challenges, and two wars are driving demand for mental health services higher. The U.S. Department of Health and Human Services (HHS) projects demand for psychiatric services will increase by 19 percent from 1995 to 2020. HHS already designates 3,132 Health Professional Shortage Areas (HPSAs) nationwide for mental health, in which 80 million Americans live. This number is likely to grow significantly if steps are not taken to address the problem.

For years, mental health challenges facing Americans have long flown under the radar. Although the shortage of psychiatrists may be a silent one, it is real nonetheless.

While demand for psychiatrists is growing faster than any other specialty, primary care doctors such as family physicians and internists remain the most recruited types of physician, as the list below indicates.

Top Ten Most Recruited Physicians

1. Family practice                                                             6. Orthopedic surgery
2. Internal medicine                                                        7.  Pediatrics
3. Psychiatry                                                                      8.  Obstetrician/gynecology
4. Hospitalist                                                                      9. Radiology
5. Emergency medicine                                                 10. General surgery

Source:  Merritt Hawkins 2010 Review of Physician Recruiting Incentives

The survey also suggests traditional models of physician practice may be changing. In the past, physicians have typically worked as independent contractors who own their practices. Today, a growing number of physicians are working as hospital employees. Of the physician searches tracked in the survey, 51 percent featured settings in which hospitals employ physicians, up from 45 percent the previous year and 23 percent four years ago.

Clearly, the independent, private medical practice is a model which may be going the way of the dinosaur. Physicians are simply tired of the risks and hassles of owning their own shops and are choosing to work as employees. Indeed, the key to physician recruiting today is to create not just a strong incentive package, but a working environment which minimizes bureaucratic and reimbursement hassles and allows doctors to do what they do best – treat their patients.

Those who would like a complete copy of Merritt Hawkins’ survey are welcome to email Kurt at kurt.mosley@amnhealthcare.com.

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Kurt Mosley is Vice President of Strategic Alliances for Merritt Hawkins and Staff Care, companies of AMN Healthcare, and can be reached at kurt.mosley@amnhealthcare.com.

Posted by Kurt Mosley on September 29, 2010. Filed under Healthcare, Thought Leadership. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry