Disruptors like Amazon, CVS driving up provider salaries

Healthcare disruptors such as Amazon and CVS are driving up demand — and salaries — for physicians and advanced practitioners, according to executive search firm AMN Healthcare.

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“A growing number of market disruptors, including retail clinics, urgent care centers, telehealth platforms, insurance companies and private equity groups, are competing with hospitals and medical groups for a limited number of providers,” the July report said. “The result is a highly competitive recruiting market in which starting salaries offered to physicians and APs are typically increasing.”

The report points to CVS’ continued expansion of clinics as well as Amazon’s recent purchase of primary care chain One Medical. Walgreens-owned VillageMD also keeps growing, as does Optum, now the largest employer of physicians.

Demand for nurse practitioners, who staff many of these retail clinics, is rising sharply, the report noted. Their average salary offer increased from $138,000 in 2022 to $158,000 this year. Nurse practitioners were the most requested search from AMN’s clients, followed by primary care physicians.

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