From packing up your life to finding housing and adjusting to a new environment, relocation comes with considerable time and financial investment. For many healthcare employers, offering relocation assistance is a key part of attracting top physician talent—and one of the most common forms of that assistance is a lump sum relocation package.

But what does a typical lump sum look like? How much should you expect to receive—or ask for—as part of your contract? 

Looking for a broader overview of physician relocation or a helpful tool to estimate your costs? Be sure to check out our resources for guidance on what to expect and request.

What is a typical lump sum for a relocation package?

The average lump sum relocation package for physicians typically ranges from $8,000 to $15,000, depending on the distance of the move, the size of your household and the complexity of your relocation. In some cases, especially for specialized roles or high-demand locations, employers may offer upwards of $20,000 or more.

Unlike itemized or reimbursed packages, a lump sum is a single, upfront payment given to the physician to manage their own relocation expenses. The benefit? Flexibility. You choose how the money is spent, whether it’s on movers, flights, housing or storage.

However, lump sums are often considered taxable income, which means the actual take-home value might be lower unless your employer agrees to “gross up” the amount to cover taxes. Always ask how the lump sum will be treated for tax purposes.

What is a typical relocation package amount?

When it comes to deciding how much relocation assistance should I ask for, the answer depends on your specific needs and the employer’s standard offerings. A typical relocation package amount will usually fall between $10,000 and $20,000, covering everything from moving services to temporary housing and even licensing costs.

Before you ask for a number, consider these factors:

• Are you moving cross country or locally?
• Do you have a family moving with you?
• Will you need short-term housing or storage?
• Are you selling or purchasing a home?

Be prepared to justify your ask. If your situation includes additional expenses (e.g., long-distance travel, multiple dependents or two-household transitions), make that clear in negotiations. Employers are often open to increasing support when provided with reasonable, documented expectations.

Also, remember that even lump sum offers can be negotiated. If your research and personal expenses suggest a higher amount, don’t hesitate to advocate for what you need.

What is reasonable to ask for for a relocation package?

So, what’s considered “reasonable” to ask for in your situation? Let’s look at a lump sum relocation package example to help you visualize expectations.

Example: Hospitalist relocating 1,200 miles with family of four

• Lump sum offered: $12,000
• Estimated use of funds:
  • $6,000 – Full-service movers
  • $2,500 – Flights for family
  • $1,500 – Temporary housing
  • $1,000 – Licensing and credentialing
  • $1,000 – Miscellaneous (meals, storage, etc.)

This example outlines how a lump sum can be strategically allocated to cover core relocation needs. While not itemized or reimbursed, it gives the physician flexibility and control over their move.

Ultimately, what’s “reasonable” depends on the total value of the offer, the complexity of your relocation and your employer’s policies. Use past experiences or colleagues’ packages as a reference point when preparing your request.

What is an appropriate relocation bonus?

A relocation bonus is sometimes offered alongside or in place of a lump sum relocation package. This type of incentive can be structured differently and is generally intended to attract physicians to hard-to-fill roles or remote locations.

So, when is relocation bonus paid?

• Some employers offer it upfront, shortly after contract signing or before your start date.
• Others may release it on your first day or after your first month of employment.
• Certain bonuses may be split into installments or require a commitment (e.g., one-year minimum tenure) before payout is finalized.

Regardless of the timing, make sure the payment structure is clearly defined in your contract. Also confirm whether a clawback clause is in place (whether you would be required to repay the bonus if you leave the job within a certain timeframe).

Relocation bonuses are often considered taxable, so again, ask about tax handling or gross-up provisions when discussing terms.

Physician relocation packages are becoming more common—and more necessary—as healthcare organizations compete for top talent. A lump sum relocation package offers flexibility and simplicity, allowing physicians to manage the moving process with greater autonomy.

The typical lump sum falls between $8,000 and $15,000, but what you receive—or request—should reflect your move’s complexity, distance and personal circumstances. From determining what’s reasonable to knowing when a relocation bonus is paid, understanding your options ensures you’re equipped to negotiate the support you need.

Looking for physician jobs that include relocation support?
Visit PracticeLink to browse thousands of openings and connect with employers who understand the value of supporting your move.