The ROI of Physician Recruitment: Why It’s More Than Just Filling a Vacancy

Physician recruitment is often treated as a temporary solution to a staffing shortage. But in reality, it’s one of the most powerful economic development tools a community can invest in—especially in Ontario.

A single physician doesn’t just treat patients. They generate local jobs, stabilize communities, and support millions in long-term economic impact.

Doctors Drive the Local Economy

Physicians’ offices contributed nearly $14 billion to Ontario’s GDP in 2019 and supported over 167,000 jobs across Canada in both direct and indirect roles, from nurses and admin staff to local suppliers and service providers (Canadian Medical Association, 2020).

In rural Ontario, one physician contributes $285,000 annually to GDP and supports 3.2 full-time jobs (Jupia Consultants Inc., 2023). Their impact ripples through every corner of a community, from local real estate and schools to hardware stores and grocery chains (Rural Ontario Institute, 2017).

Recruitment Has an Incredible Return on Investment

Every $1 invested in physician recruitment can generate $12–$30 in return through physician billings, job creation, economic activity, and avoided costs tied to vacancies or emergency coverage (Jupia Consultants Inc., 2023; Deloitte Canada, 2025).

When physicians leave, hospitals often spend $20,000–$50,000 per locum just to keep services running. The cost of instability adds up, financially and socially.

Physicians Reduce System Strain

Physicians aren’t just good for business, they’re essential to the overall sustainability of Ontario’s healthcare system.

Primary care physicians serve as the foundation of care. They manage chronic illnesses, provide preventive care, coordinate referrals, and reduce the need for hospital-based services. According to the Canadian Institute for Health Information (CIHI, 2024), stronger access to family doctors is directly associated with lower emergency department usage and fewer avoidable hospital admissions, particularly for chronic conditions like asthma, diabetes, and heart failure.

Primary care improves continuity and leads to earlier intervention, reducing the likelihood of costly complications or acute health crises. CIHI notes that without consistent access to a primary care provider, patients are more likely to rely on emergency departments for routine issues, which contributes to overcrowding and strain across the system.

Even modest improvements have significant economic impact: the Conference Board of Canada (2013) found that a 1% improvement in population health translates to a 1.7% increase in workforce productivity, underscoring how closely health access and economic performance are linked.

Recruitment Helps Communities Grow

In rural and underserved areas, physician recruitment is often the tipping point between growth and decline.

No doctor = no new families = no economic growth.

Access to healthcare influences:

  • Whether families stay or relocate

  • Whether businesses open or close

  • Whether local services like schools and housing markets thrive

Physicians anchor local services, support population retention, and trigger new investment. The Standing Committee on Health (House of Commons, 2019) emphasized the role of physician access in maintaining livable rural communities, a finding echoed in the Rural Ontario Foresight Papers (Rural Ontario Institute, 2017).

Retention Multiplies ROI

Recruitment is the first win. But retention is where the real economic payoff happens.

A physician who stays for 10 or more years contributes over $4 million in cumulative value to their community (BMC Primary Care, 2020). That includes long-term patient relationships, continuity of care, and a stable foundation for future recruitment.

Communities that invest in onboarding, spousal employment, housing access, and social connection see much higher retention—and much greater returns.

Conclusion: It’s Not Just Health. It’s Infrastructure.

Physician recruitment is not just about healthcare coverage. It’s economic infrastructure.
It boosts GDP, supports job creation, and keeps Ontario communities alive and thriving.

Every new doctor in Ontario is a win.
Let’s treat recruitment—and retention—for what it truly is: a smart, strategic investment in our collective future.

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