Why Physician Needs Assessments Are Critical for Successful Recruitment
May 19, 2025
Protect your recruitment strategy with objective physician needs data that ensures compliance and community impact.
Compliance Services
Performance Transformation
Recruiting physicians is one of the most important (and most regulated) activities a hospital undertakes. Without objective evidence of need, even the best-intentioned recruitment efforts could put your organization’s compliance and tax-exempt status at risk.
A Physician Needs Assessment (PNA) prepared by a trusted third party isn't just best practice—it’s essential protection. At Coker, we work with hospitals to build physician recruitment strategies grounded in fact, compliance, and a clear commitment to community service.
What Is a Physician Needs Assessment?
A Physician Needs Assessment (PNA) provides an objective evaluation of the medical specialties and physician supply in your hospital’s service area. It identifies gaps, forecasts future needs, and offers a defensible foundation for physician recruitment decisions.
Unlike broader community assessments, a PNA focuses specifically on the physician workforce and the regulatory requirements that govern recruitment arrangements.
Why Objectivity Matters in Recruitment
The IRS and Office of Inspector General (OIG) have consistently emphasized that physician recruitment incentives must primarily benefit the community. Objective evidence of physician need is required to prove that recruitment agreements aren't simply benefiting individual physicians.
Since 1986, regulatory guidance has required hospitals to document:
- Specialty shortages or gaps
- Demand exceeding available services
- Long wait times or underserved populations
- Physician retirements or shortages on the horizon
Relying on internal assumptions without third-party validation can create exposure, especially during audits or investigations.
How Objective Physician Needs Assessments Safeguard Your Hospital
An independent PNA provides the documentation needed to support compliant recruitment. It offers a clear picture of community needs, reduces risk, and demonstrates good faith to regulators.
Consider these real-world examples:
- Hermann Hospital (IRS Closing Agreement): Hermann successfully validated its recruitment incentives by demonstrating specialty shortages, upcoming physician retirements, and underserved populations through documented objective analysis.
- OIG Advisory Opinion No. 01-4: A hospital’s recruitment arrangement passed OIG scrutiny because it conducted a bona fide physician needs analysis showing a real shortage in its service area.
These cases show that objective assessments aren’t just paperwork—they're essential to protecting your hospital’s reputation and compliance.
How We Help
At Coker, we provide comprehensive, unbiased Physician Needs Assessments tailored to your market realities. We analyze service area demographics, physician-to-population ratios, and specialty needs to create a defensible report you can trust.
Our team updates assessments regularly to keep your recruitment strategy aligned with shifting market demands and regulatory expectations.
With us as your partner, you can move forward with confidence knowing that your recruitment plans are compliant and defensible and, most importantly, that they truly serve your community’s health needs.
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