Physician Recruitment Glossary
Plain-language definitions of the terms hospitals, health systems, recruiters, and physicians use during a physician search. Updated April 2026.
Engagement structures
Retained search — exclusive, dedicated recruiter engagement with an upfront retainer (typically one-third of total fee). Total fees 25–30 percent of first-year compensation. Best for hard-to-fill specialties, leadership roles, confidential searches, and rural placements. Average time-to-fill 90–150 days.
Contingency search — no upfront fee; recruiter is paid only on successful placement. Total fee 20–28 percent of first-year compensation. Best for common specialties and competitive urban markets. Average time-to-fill 120–240 days.
Locum tenens — short-term physician coverage paid hourly or daily, with malpractice and travel covered. Assignments run one week to twelve months.
Compensation and incentives
RVU (Relative Value Unit) — Medicare's productivity unit. Most physician compensation models base productivity bonuses on wRVUs (work RVUs).
Cost of vacancy — daily revenue loss from an unfilled physician seat. Typical hospital-employed physician: $5,000–$15,000 per day in lost professional revenue, downstream referrals, and locum coverage.
HPSA (Health Professional Shortage Area) — federal designation for areas with insufficient primary care, dental, or mental health providers. HPSA-designated facilities qualify for NHSC loan repayment, Medicare bonus payments, and J-1 visa waivers.
NHSC (National Health Service Corps) — federal program offering up to $75,000 in loan repayment over two years for primary care, dental, and behavioral health physicians serving HPSA facilities.
J-1 waiver / Conrad State 30 — visa pathways for international medical graduates committing to three years of service in underserved areas.
Process terms
Credentialing — verification of a physician's medical education, training, board certification, licensure, malpractice history, and references before they can practice at a facility. Typically 60–120 days.
Time-to-fill — calendar days from search kickoff to signed offer. 90–150 days for retained recruiter searches; 180–270 days for unsupported internal HR searches.
Replacement guarantee — recruiter commitment to restart a search at no additional fee if the placed physician leaves within a defined window. Retained: 12 months. Contingency: 90–180 days.