Most physician search firms charge a placement fee of roughly 20% to 30% of the physician’s first-year compensation, and scarce specialties can run higher. But for most organizations the larger cost isn’t the fee. It’s the months the position sits open.
What a vacancy costs
- Lost revenue. Physicians generated an average of $2.38 million a year in net revenue for their affiliated hospitals in a survey of hospital CFOs (Fierce Healthcare). That’s roughly $200,000 a month.
- Time. The median physician search took 119 days in 2025, half of all searches were still open at year-end, and the typical physician started 229 days after the job was posted (AAPPR via Becker’s).
- Strain on the team. Colleagues absorb the extra patients and call, which raises the risk of a second departure.
That’s why the lowest fee isn’t always the lowest cost. A search that fills the role in four months instead of nine usually costs less overall.
Other costs of hiring a physician
- Sign-on bonus and relocation — common in most specialties. GI sign-on bonuses, for example, have averaged about $46,000 (Becker’s ASC).
- Interview visits — travel and lodging for finalists and, often, their families.
- Credentialing and onboarding — often several months between a signed contract and a first patient.
How Capstone Recruiting Advisors structures a search
- Dedicated or contingent. For most searches we recommend dedicated: a partner’s committed time and a defined plan. Contingent can fit common specialties in strong markets. We’ll recommend what fits on the first call. See how we work.
- Fees typically 20–30% below larger national firms, with most of the fee tied to results.
- A small initiation fee for dedicated searches. A modest portion of the placement fee is paid when the search starts. It commits a partner’s time and resources to your search, and it reflects what we’ve seen work: searches succeed most when both sides are invested. The rest of the fee is tied to a successful placement.
- Multi-search pricing for organizations with several openings.
- Replacement at no charge. If a provider we place leaves within the period outlined in your agreement, we’ll recruit a replacement at no additional fee.
- No hidden fees. All terms are agreed in writing before the search starts.
Frequently asked questions
How much does a physician recruiter charge?
Most physician search firms charge roughly 20% to 30% of first-year compensation. Scarce specialties can run higher.
What does an open physician position cost?
Physicians generate an average of about $2.4 million a year in net revenue for their affiliated hospitals, so each month of vacancy can mean roughly $200,000 in lost revenue, plus strain on the physicians covering the gap.
Is a dedicated or contingent search less expensive?
It depends on the search. For hard-to-fill roles, a dedicated search usually costs less overall because it shortens the vacancy.
How does Capstone price a search?
By search type and number of searches. Dedicated searches start with a small initiation fee, a portion of the placement fee, and the rest is tied to a successful placement. We share exact terms on a call once we understand the role.