While hospitals and health systems work to recruit and retain the next generation of healthcare talent, another group is also top of mind: those nearing retirement age.
A recent study found that leaving the workforce before retirement age may accelerate cognitive decline, and working into older ages could help delay it. For employers, the case for retaining experienced employees is also pressing amid concerns of a wave of baby boomer retirements that could thin institutional knowledge across the workforce.
To keep their most experienced team members engaged, health systems are building structured pathways that let them stay in the workforce longer, including flexible scheduling, phased transitions and mentorship programs.
At Annapolis, Md.-based Luminis Health, employee well-being is a top priority — including support for those approaching retirement, Chief Human Resources Officer Amy Beales told Becker’s. One area of focus has been encouraging earlier and more intentional retirement planning conversations between leaders and staff members.
“By discussing timing, scheduling flexibility, and phased transitions well in advance, we can adjust responsibilities or hours in ways that better support the employee while also helping the organization plan ahead,” Ms. Beales said. “In many cases, this approach has helped retain experienced employees longer, strengthen knowledge transfer and mentorship, and reduce operational gaps during leadership or staff transitions.”
Other systems are formalizing those transitions into structured programs. Santa Barbara, Calif.-based Cottage Health has made succession planning a key focus, CHRO Cara Williams told Becker’s in 2025, implementing a program that allows retiring employees to phase their retirement over two years while building a robust succession plan across all levels.
Nurses are a key focus. Morgantown, W.Va.-based WVU Medicine offers a work-life balance program that allows qualifying nurses near retirement to work part-time while receiving full-time benefits, a structure designed to boost retention, Assistant Vice President of System Nursing Services Jessica Huffman, DNP, RN, told Becker’s in September.
Physicians are also a top priority. They are leaving clinical practice earlier than ever as a result of stress and administrative burden, according to a May study conducted by American Medical Association researchers. The shift comes as the U.S. faces a projected physician shortage of between 13,500 and 86,000 by 2036 — a gap that could be reduced by about 40,000 simply by increasing the average retirement age by two years, the researchers found.
Physician CEOs have been especially focused on retaining later-career physicians, with many systems offering part-time roles and flexible schedules to meet their evolving needs.
At Duluth, Minn.-based Essentia Health, section leaders meet twice a year with the colleagues to discuss development, regardless of career stage, CEO David Herman, MD, told Becker’s in 2025. When one physician considering retirement said they would prefer to focus on inpatient work, and another at a similar stage wanted only outpatient work, Essentia restructured their duties to meet their needs.
“Suddenly they both said, ‘I think I have another five years left in me,’” Dr. Herman said. “The things that create energy are different for everyone.”
Beyond scheduling, systems are also opening up new paths for experienced physicians who want to stay involved in different ways. Richmond, Va.-based VCU Health, for instance, creates opportunities for physicians pursuing MBAs or transitioning into leadership roles. CEO Marlon Levy, MD, told Becker’s in 2025 that many physicians late in their careers are not looking to leave entirely.
“They want to continue to participate — often not either administratively or clinically, but both,” Dr. Levy said. “It’s incumbent upon administrative teams to understand that doctors feel like they may have more to contribute in the administrative or leadership space than they had in the past.”
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