What are examples of relocation costs?
Relocating for a new physician role can be an exciting step in your career, but it often comes with a range of expenses that can add up quickly. From professional movers to temporary housing, understanding what’s typically included in a relocation package can help you better prepare, negotiate and transition smoothly.
For physicians, relocation support is not only common—it’s expected. Hospitals and healthcare systems recognize the value physicians bring, and many include relocation packages as part of their total compensation offering. Knowing what are examples of relocation costs can help you determine what is reasonable to request and what expenses may be reimbursed or covered.
Looking for a broader overview of physician relocation? Or a comprehensive relocation expenses list? Be sure to check out our free physician resource center to learn more.
What are examples of relocation costs?
A relocation package is designed to help offset the financial burden of moving. While every situation is different, most relocation package examples include the following costs:
- Moving services: Professional movers to pack, load, transport and unload your belongings
- Transportation: Flights, rental cars or mileage reimbursement for travel to your new location
- Temporary housing: Hotel stays, corporate housing or short-term rentals while securing permanent housing
- Storage: Short-term storage for household goods, especially if there’s a delay between moving out and in
- House hunting trips: Travel and lodging costs for trips to visit and evaluate potential living areas
- Meals and incidentals: Per diem stipends or reimbursement for food, gas and minor moving-related purchases.
- Pet relocation: In some cases, expenses to move pets safely to the new home
These are just some common examples. High-level or cross-country moves may also include more comprehensive services like professional cleaning, utility setup or home sale/purchase assistance.
What is normally included in a relocation package?
A reasonable relocation package typically includes financial assistance and logistical support. Employers may provide this in one of three ways:
- Lump sum payment: A one-time payment to cover any moving-related costs as the employee sees fit
- Reimbursement: Upfront payment from employee with receipts submitted for reimbursement
- Direct billing or managed services: The employer pays vendors directly for moving and relocation services
Here’s what’s normally included:
- Packing and transportation
- Travel for the physician and family
- Short-term accommodations
- Storage if needed
- Assistance with licensing and credentialing fees
- Real estate or rental support
The key to understanding what is a reasonable relocation package is to assess your unique situation. Are you moving across the country? Does your family have special housing needs? The more complex your relocation, the more robust your package should be.
What is an eligible relocation expense?
An eligible relocation expense typically refers to costs that qualify for reimbursement under your employer’s policy—or in some cases, were previously tax-deductible under IRS guidelines (though tax deductions for moving expenses were suspended for most people in recent years).
Your relocation expenses list may include:
- Transportation and lodging for the move
- Packing and shipping household goods
- Temporary housing
- Storage fees
- Real estate commission or lease-breaking fees
- Travel for spouse or dependents
Some employers also include “soft costs” like utility setup or moving insurance. To avoid surprises, ask your employer for a copy of their relocation policy, and clarify which expenses are covered.
What do companies usually pay for relocation?
Most companies base relocation assistance on the complexity of the move, job level and current industry trends. While some offer flat-rate packages, others tailor support using a relocation package calculator, which estimates costs based on factors such as:
- Distance between origin and destination
- Household size
- Regional cost-of-living differences
- Services required (full-service vs. DIY move)
For physicians, companies typically pay between $10,000 and $20,000 for relocation support. However, for particularly competitive roles or long-distance moves, this figure may be higher.
Using a relocation package calculator—many of which are available online—can help estimate your expected costs and make a more compelling case during negotiations. Be prepared to discuss your needs in detail, from travel arrangements to licensure requirements in the new state.
Whether you’re relocating for your first job out of residency or transitioning to a new opportunity later in your career, understanding what are examples of relocation costs can help you navigate the process confidently.
From household moving services to temporary housing and credentialing fees, physician relocation expenses can be extensive—but many are negotiable and commonly covered by employers. Knowing what to ask for, and what’s considered reasonable, is key to ensuring your move is as seamless and financially supported as possible.
Ready to take the next step in your career?
Visit PracticeLink to explore thousands of physician job openings—many with relocation packages—and get matched with opportunities that support your move.
