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Physician burnout remains a significant workforce issue for medical practices, despite improvements in national rates. According to the American Medical Association (AMA), 41.9% of physicians reported experiencing at least one symptom of burnout in 2025, a decrease from 43.2% in 2024 and 48.2% in 2023. While this decline indicates measurable improvement, burnout continues to impact a substantial portion of the physician workforce.
For medical practices, physician well-being has implications that extend beyond individual physicians. An April 2026 MGMA survey revealed that 33% of medical groups reported having a physician retire or leave in the previous year due to burnout. Such departures can create additional scheduling demands, increase recruitment costs, and add workload pressures for the remaining clinicians and staff.
The financial repercussions of workforce disruption are particularly important as practices manage already elevated operating expenses. MGMA reported that 84% of medical groups experienced higher year-to-date operating costs in 2026 compared to the same period in 2025, with those reporting higher costs seeing an average increase of around 11%. Labor-related expenses, including wages, benefits, and staffing shortages, were key contributors to this rise.
One frequently cited factor associated with physician stress is the amount of time spent on work outside of direct patient care. AMA data indicated that physicians reported an average workweek of 57.8 hours in 2024, which included 27.2 hours of direct patient care, 13 hours of indirect patient care, and 7.3 hours on administrative tasks. The data also revealed that 22.5% of physicians spent more than eight hours per week on electronic health record (EHR) activities outside of regular work hours.
Administrative burdens extend beyond EHR-related tasks. MGMA's 2026 Regulatory Burden Report, based on feedback from over 230 medical practice executives, identified prior authorization, Medicare Advantage requirements, and quality reporting as issues that compel practices to divert time and resources away from patient care. Sixty percent of survey respondents came from independent practices, underscoring the significance of administrative demands across different practice structures.
Retention is not merely a concern for human resources; it also has implications for a practice's operational and financial planning. According to MGMA's May 2026 survey, 28% of medical groups reported higher staff turnover than in the previous year, while 30% indicated lower turnover, and 39% reported turnover remaining about the same. Although turnover has stabilized for many organizations, the data suggest that workforce retention remains an ongoing management challenge.
This issue can become even more complex when staffing levels do not align with patient demand. In a July 2026 MGMA survey, 63% of medical groups reported that their support staff-to-physician ratio remained unchanged, while 18% increased the ratio and 19% decreased it. Approximately one in four practices with unchanged or increased staffing ratios indicated that their current support staffing was inadequate to meet patient demand.
Compensation is an important component of workforce strategy, but physician retention involves more than just pay. AMA data from 2024 indicated that 70.5% of physicians received compensation primarily through salary, 55% through productivity metrics, and 39% through bonuses, with 60.8% compensated through two or more methods. These varied compensation structures illustrate how practices can implement multiple financial approaches when designing physician employment and retention strategies.
The workplace experience also varies significantly based on career stage. AMA data from 2025 showed that burnout rates were 40.8% among physicians one to five years after residency or fellowship, compared to 48.8% for those six to ten years out and 49.8% for those 11 to 15 years out. These differences suggest that retention strategies should consider physicians' career stages rather than treating the workforce as a homogeneous group.
Medical practices are directing resources toward workforce and technology initiatives. MGMA's 2026 budgeting survey found that 37% of medical groups identified workforce development as their largest new investment category, while 30% focused on health information technology. These investments indicate that practice leaders are assessing staffing and technology not only as expenses but also as components of their long-term operational planning.
For practice leaders, addressing burnout and retention entails examining the broader economics of the organization, including staffing levels, administrative workload, technology, compensation, scheduling, patient demand, and opportunities to reduce unnecessary work. The AMA reported that physician job satisfaction reached 77% in 2025, up from 67.6% in 2022, while the percentage of physicians reporting significant job-related stress fell to 42.9% from 50.7% in 2023. These figures demonstrate that workforce conditions can change over time, highlighting the importance of ongoing management efforts.
Physician burnout is not solely a wellness issue. For medical practices, workforce stability intersects with operating costs, productivity, patient access, recruitment and long-term financial planning. With one-third of medical groups reporting a physician departure or retirement related to burnout in the past year, and 84% reporting higher operating costs in 2026, workforce retention represents one of several financial considerations practice leaders may need to evaluate as they plan for sustainable growth.
Ultimately, the data suggests that workforce retention is closely connected to how a practice is structured and managed. Understanding where physicians and staff spend their time, how resources are allocated and which operational challenges contribute to workload can help practice leaders make more informed decisions about staffing, technology and investment. For physician-led practices, maintaining a sustainable workforce can be considered alongside the broader financial priorities of managing costs, preserving cash flow and investing in the future of the practice.