HEALTH CARE MANAGEMENTInstructionsIn Unit VIII, you are re.docx
Locum Tenens 101_A Physicians Guide
1. locum tenens
101
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Consistency in the look and feel of the Medicus
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When used in combination, the two brands
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When color or printing prohibits this, it may be
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a physician’s
guide
2. 1
Who can benefit from locum tenens assignments? Recent medical school
graduates exploring options at the beginning of their careers. Established
physicians looking at a potential mid-career change or an opportunity for
increased income. Recently retired doctors with a desire to keep practicing
on their own terms.
If you fall into any of these categories, you may be one of many physicians
examining your career options and determining your next step. Regardless
of your current career stage, locum tenens may be the perfect way to help
you reach your specific career goal.
why locum tenens might be
the right choice
for you
Benefits of LocumTenens
Engaging in a locum tenens assignment can have multiple benefits:
• Supplement your income to help pay off college loans, improve
cash flow to meet the needs of a growing family, or add to a
retirement nest egg.
• Enjoy scheduling flexibility with assignments of varying lengths.
• Focus on caring for patients, not insurance paperwork or running
an office.
• Live, travel, and practice in geographic areas that you want to
experience.
• Expand your professional network into new areas.
• Enjoy independence and autonomy in when and where you
practice medicine.
• Ease into retirement by working for selected lengths of time.
This e-book explains the concept of locum tenens, how it works, and its
advantages, as well as how to get started and the benefits of working with
a reputable locum tenens agency. Most importantly, it outlines how you can
quickly shift gears and take advantage of this lucrative and often rewarding
career path.
3. 2
What Is LocumTenens?.....................................................................3
Top Reasons Physicians Like Working LocumTenens........................4
The Advantages of LocumTenens......................................................5
Financial Benefits..............................................................................5
Flexibility..........................................................................................5
Simplified Work Environment...........................................................5
Opportunity forTravel.......................................................................5
Expand Career Options.....................................................................5
Autonomy.........................................................................................6
Transition into Retirement................................................................6
The Basics of LocumTenens..............................................................7
LocumTenens Agreements................................................................7
Top 10 Specialties in Highest Demand..............................................7
Licensing...........................................................................................9
Ethical Guidelines.............................................................................9
Self-Employment.............................................................................10
The Benefits of Working with the Right Agency Partner..................11
Single Relationship..........................................................................11
Extensive Experience.......................................................................11
Support Structure............................................................................12
Breadth of Opportunities................................................................13
The Next Step..................................................................................14
How Medicus Can Help..................................................................14
table of
contents
4. 3
Locum tenens is Latin for “place holder” and is the term used to describe
the practice of physicians temporarily fulfilling the duties of full-time
medical staff. The locum tenens industry began in the early 1970s
when the University of Utah secured a federal grant to staff rural health
clinics in medically underserved areas of the western United States.
The physician staffing program proved so successful that many hospital
administrators and physicians began calling for locum tenens assistance
on a more widespread basis.
Recent data dramatically illustrates the growing popularity of locum
tenens. One in five hospitals used temporary physicians in 2009.That rose
to over half in 2013, according to a recent report in Medical Economics.
There has been a 16% increase in the number of institutions employing
the practice in the last year alone.The number of physicians participating
in locum tenens placements has nearly doubled since 2002—from about
26,000 to nearly 40,000, according to the study.
what is
locum tenens?
5. 4
The impending physician shortage promises to spur the growth of locum tenens even further:
• According to the American Medical Association, 24% of today’s
physicians are over 60 years old and another 49% are between 41
and 59.
•The Association of American Medical Colleges (AAMC) forecasts
that in 15 years, this wave of retirements will cause a deficit of up to
159,300 physicians in the United States.
•The AAMC projects universal access to healthcare will increase the
physician shortage by an additional 31,000 doctors.
•The American Academy of Family Physicians (AAFP) predicts a
shortage of 149,000 physicians by 2020.
• The Health Resources and Services Administration (HRSA)
forecasts a shortfall of 65,560 primary care physicians by 2020.
In addition to the emerging physician shortage, there is also a long-
standing misdistribution of physicians in the United States, with
fewer doctors practicing in rural and inner city areas. HSRA currently
designates over 6,200 Health Professional Shortage Areas (HPSAs) for
primary care nationwide, areas in which over 65 million people live.
Two thirds of HPSAs are in non-urban areas.The ratio of primary care
providers to patients in these areas is less than one per 2,000.
Healthcare providers will increasingly look to locum tenens to help
cover these shortages and to better balance physician availability.
Locum work is not just a solution for the impending long-term
physician shortage. It also solves ongoing staffing issues by providing
healthcare organizations with the ability to maintain high standards
of patient care by hiring qualified temporary staff during vacations
and peak periods, or bridging hiring gaps while seeking to fill
permanent positions.
One thing appears certain. The combination of these factors ensures
there will be a robust market for locum tenens physicians for many
years to come.
Top Reasons Physicians LikeWorking
LocumTenens
1. Focus on patients, not politics
2. Earn typically higher pay
3. Enjoy flexibility: choose the timing, length, and
location of your assignment
4. Contribute to a situation in need of your expertise
5. Broaden your skill set and enhance your résumé
6.Test out a potential full-time position
7. Experience how other healthcare facilities operate
8. Expand your professional network
9. Gain in-depth experience in your particular specialty
10. BE YOUR OWN BOSS
6. 5
Physicians are drawn to locum work because of the many advantages
it offers. Several of these factors may make locum tenens an attractive
option for you.
financial benefits
You can enjoy the financial benefits of locum work at every stage of your
career. Young doctors just starting out can take locum assignments on
weekends or on days off to help pay down those enormous education
loans.A full-time practicing physician might be looking for extra income
through a locum assignment. For physicians approaching retirement,
locum assignments are an effective way to build up retirement savings.
Based on a recent Medicus study, a physician taking just five locum
shifts a month can earn upwards of $100,000 in supplemental income.
The amount you earn will depend on your specialty, the locations in
which you are willing to practice, and the amount of time you can
devote to taking assignments.
the advantage of
locum tenens
flexibility
Flexibility is cited most often as one of the top reasons physicians choose
to work as a locum tenens. Working locum means you choose the timing,
length, and location of your engagement. You may select assignments for
a week, six months, or even longer depending on your personal situation.
You also can determine the settings of your engagement—hospital, office-
based practice, rural health clinic, or government facility.
simplified work environment
Choosing to work as a locum can eliminate many of the challenges faced
by permanent physicians. You can practice medicine without worrying
about patient insurance plans, hiring and training staff, or concerns about
administrative and overhead costs. Being a locum provides you the opportunity
to take care of patients without having to work through some of the typical
politics that are sometimes involved with permanent positions.
opportunity for travel
You can select a locum assignment in a particular state or region of the
United States that you have wanted to visit. You can coordinate with
your recruiters to line up assignments that best match your lifestyle and
interests or that will allow you to pursue your hobbies. Many physicians
travel with their spouses and with some advance preparation can arrange
assignments to coincide with family events like weddings, graduations, or
the birth of a grandchild.
expanded career options
Locum engagements provide opportunities for you to expand your
professional network. If you are in the early stages of your career, you can
explore different types of settings and assignments to find the right fit—
7. 6
without having to make a permanent commitment. If you are in mid-
career and are considering a change, a locum assignment is a perfect way to
experience a new working environment or to practice in an institution with
more up-to-date technology.A locum assignment also may help you secure a
permanent placement if you decide the position is a good fit.
autonomy
Downsizing is a threat in all areas of the economy, including healthcare.
Locum work is one way to take control of your career and ensure your
own job security. It is a way to establish a level of independence without
the problems involved in owning and managing a private practice or
being a partner in a group. As a locum physician, you practice as an
independent contractor with a high degree of autonomy. You decide
where and when you work and can negotiate the pay and terms you
desire. Being an independent contractor puts you in control and allows
you to decide what is best for you.
transition into retirement
For some physicians, the prospect of retirement creates feelings of uncertainty
and raises questions about the next stage of life. Have I saved enough to enjoy
retirement?Will I be able to offer financial support for parents or children?Will
I miss practicing medicine? How will I stay mentally sharp if I’m not working?
Taking on locum tenens assignments can help provide some of the
answers. Locum work allows you to take shorter engagements at places
and times of your choosing, helping you ease into retirement.
8. 7
Participating in a locum tenens arrangement makes you an independent
contractor providing services to those hospitals and organizations
that have a need to fill. Your first step should be to connect with an
experienced locum tenens agency that can help guide you through the
details of establishing locum arrangements. The agency will work to
understand your particular requirements and help find the opportunities
that best fit your needs.
the basics of
locum tenens locum tenens agreements
Once you have chosen an agency, you will be asked to enter into a locum tenens
agreement. As with all legal agreements, you should have your lawyer review
the agreement before you sign. The basic components of the locum tenens
contract—and items to look for—include:
term
Some agencies use a blanket contract to cover all placements that a physician
accepts over a given period of time, typically a year or two. In this case, the
details of each engagement will be outlined in a separate acceptance letter. Other
agencies draw up a unique agreement for each engagement. In either case, make
sure you are aware of and accept the length of the agreement.
liability
If you are working with a National Association of Locum Tenens Organization
(NALTO) member agency, you will be covered for malpractice with a quality
professional liability policy. Be sure your agreement clearly notes that insurance is
being provided for you at the agency’s expense.
non-compete
A non-compete clause is an industry standard. It will outline any stipulations or
restrictions such as working with another locum agency or permanent placement
opportunities.
payment
Your payment will come directly from the locum agency. Agencies earn
their fee in exchange for matching you with opportunities; handling
Top 10 Specialties in
Highest Demand
1. Primary care physicians
2. Hospitalists
3. Surgeons 4. Oncologists
5. Emergency medicine physicians
6.Anesthesiologists
7. Internal medicine sub-specialty physicians
8. Radiologists 9. Nurse practitioners
10. Physician assistants
9. 8
the licensing, credentialing, and privileging process; making travel and
housing arrangements (often on short notice); and providing malpractice
insurance.
Locum physicians are typically paid by the hour or day, with potential
additional compensation for weeknight and weekend calls and overtime
pay for exceptionally long shifts. The amount, method, and timing of
your payments should be specifically spelled out in your agreement.
Pay rates for locum physicians are market driven. Increased demand
in a specific specialty or geographic area commands a higher rate of
compensation. Pay rates can be negotiated to some degree, but most
locum tenens companies tend to offer a similar range of competitive
compensation.
Submitting timely and accurate hours or days-worked reports to your
locum agency should ensure you are paid promptly.
expenses
The agreement or a separate policy document should detail which expenses
will be covered by the locum agency or the hospital/group where you
intend to practice and which ones will be your responsibility. If in doubt,
ask for clarification.
cancellations
It is important that you understand your contractual obligations.Your agreement
is a binding legal document that specifies your rights. An effective locum
agreement should be fair and equitable to both parties. Stay in close contact
with your locum agency representative to quickly and thoroughly address any
concerns that you may have.
“Submitting timely and accurate hours or days-worked reports
to your locum agency should ensure you are paid promptly.”
10. 9
licensing
Obtaining state medical licenses can be an arduous task for physicians. As you
consider your locum tenens career, think strategically about which licenses to
acquire. Most locum physicians are licensed in five to eight states, but that can vary
depending on personal preferences. Many government facilities accept any valid
state licenses,which increases the pool of potential assignments.Your locum agency
can help you apply for licenses, either in anticipation of an assignment or based on
the locations in which you wish to practice.
Some agencies—like Medicus Healthcare Solutions—will reimburse you for
licensing fees once you have completed a certain number of shifts.
When deciding where to become licensed, factor in personal preferences and
demand for your specialty.The time required to process medical licenses can vary
from two weeks to several months. In general, the larger the state, the longer you
can expect to wait.Initial application fees also vary significantly,ranging from less
than $100 to well over $1,000.
Most locum agencies have staff dedicated to helping physicians with the
paperwork needed to practice, including obtaining licenses. With your
permission, they also are able to communicate with some licensing boards
about the status of your pending application. For more information regarding
licensing, visit the Federation of State Medical Boards website.
You also might want to consider using the Federation CredentialsVerification
Service (FCVS). This service can act as a primary source of verification
for credentials that do not change, such as exam scores, medical school,
residency, and fellowship information. It costs a few hundred dollars but
might be worth the investment, especially if you are an international graduate
or a physician who anticipates applying for several licenses.You also should
be aware that a few states require the use of FCVS, so if you are applying in a
state that does require this, plan for additional lead time.
Keep your licenses active to prevent having to start the process from the beginning.
Also,a lapsed license can raise a red flag during future credential checks,as well as
when you apply for additional state licenses.
ethical guidelines
Physicians considering a locum arrangement should be aware of several ethical
issues relative to the industry.
what you should expect from an agency
A reputable recruiter will never present your name or CV for potential placement
withoutfirstoutliningtheopportunityandobtainingyourconsent.Arecruitermust
be forthcoming regarding all aspects of a potential engagement. Before agreeing to
the engagement, you should be aware of the hours, patient volume, procedures
you are expected to perform, and level of staff support.You also should be made
aware of any potential adverse local conditions that could affect you during the
assignment.A respectable recruiter will not ask you to cancel a commitment with
another agency to take an engagement with the recruiter’s agency.
what is expected from physicians
If you practice locum tenens regularly,you may be registered with more than one
company. Once you commit to an engagement with one organization, you are
obligated to provide services through that agency.
“Some agencies — like Medicus
Healthcare Solutions — will
reimburse you for licensing fees
once you have completed a
certain number of shifts.”
11. 10
Also, it is considered a breach of ethics to contract “on the side” with a clinic
or hospital in which you have practiced through an agency within the past two
years (or whatever term your contract states). You should disclose any prior
engagement with a firm at a location if you are offered another assignment at this
location by a different company.Your original contract’s non-compete clause will
likely require the institution to engage you through the original agency.
A locum tenens career involves a series of temporary engagements, but many
physicians build long-term agency relationships. Expecting strong ethics and
adhering to high standards will help ensure longstanding, satisfying professional
relationships.
self-employment
As a locum tenens, you are acting as an independent contractor and therefore
have the responsibility to run your own business. You should contact your lawyer,
accountant, and financial planner to discuss your personal situation in detail.
accounting
Your locum compensation will likely be higher than your traditional employee
pay for various reasons. Most importantly, because taxes will not be deducted as
they would in a traditional paycheck,you are responsible for paying the associated
tax on that income on a quarterly or annual basis. On the expense side, some of
your costs will be deductible, which will partially offset your income and reduce
your tax liability.Your accountant can help you set up the bookkeeping required
to manage your business and to provide appropriate tax planning advice.
financial planning
You also will be responsible for your own health plan and other insurances
typically handled by an employer. You should consider retaining a financial
planner to help with this and with investment and retirement planning.
legal advice
Every business needs occasional legal advice.The most important role of a lawyer
will be reviewing your engagement agreements, but there will be other instances
when having an experienced lawyer on your team will be beneficial.
For more information on the locum tenens process, check out the National
Association of LocumTenens Organizations (NALTO) website.
12. 11
the benefits of working with
the right
agency
partner
Once you decide to engage in locum tenens, you will discover that your
services are in high demand. Multiple locum companies looking to fill
the growing number of available assignments will likely approach you.
Keeping track of which agencies have presented your CV to which hospitals
can be confusing and time consuming. Trying to handle this complexity
while working a full-time job and managing your personal life can be an
overwhelming task.
Your best choice is to partner with one reputable locum tenens agency that
specializes in building long-term relationships with healthcare institutions
and physicians, enabling the agency to facilitate equitable matches for both
parties. There are many advantages to working with the right organization.
Here are some things to look for when choosing your locum tenens agency.
single relationship
With the right agency partner, you are part of a team that represents you
and your particular career goals. Ideally, you should have one dedicated
contact that continually communicates with you to ensure your changing
needs are always considered. Knowing your situation intimately will enable
this individual to present you effectively to hospitals and other healthcare
institutions.
Your dedicated recruiter will handle contract negotiations and assist with
credentialing and licensing details. Once you are on assignment, your
recruiter becomes your advocate in areas such as keeping the institution
accountable for your workload and ensuring acceptable working conditions.
extensive experience
Look for an agency partner with significant experience in the industry.An agency
that contracts with a broad range of facilities, from hospitals to outpatient clinics
13. 12
in a number of geographical areas, can provide a variety of options when you are
choosing assignments. It is also beneficial to deal with a partner that has a Federal
Supply Schedule (FSS) contract, which enables the agency to place you in short-
and long-term assignments in federal government facilities
Your agency partner should be able to place you in assignments that offer financial
incentives like referral and shift completion bonuses. Some agencies often reward
their practitioners with travel, vacation, educational, and financial incentives as
they reach particular milestones in the relationship.
support structure
A key reason for working with an agency is to eliminate the hassles that are involved
in working locum assignments.To that end, you should look for an agency partner
with a strong internal support structure to handle many of the details involved.
medical malpractice insurance
Theagencyyouchooseshouldprovidemalpracticeinsurance.Thepolicyshouldcover
multi-million dollar claims and tail coverage withA+ rated insurance companies.
“Your agency partner
should be able to place
you in assignments that offer
financial incentives like referral
and shift completion bonuses.
Some agencies often reward
their practitioners with travel,
vacation, educational, and
financial incentives as they
reach particular milestones in
the relationship.”
14. 13
credentialing
Obtaining the appropriate credentials for your assignment can be complex,
so your agency partner should relieve you of much of that burden.
The agency should have a team of specialists on staff that coordinates
and expedites the credentialing paperwork and process for you. Some
will even offer administrative assistance for licensing to keep track of
expirations and requirements.
In a case where an assignment requires a license you don’t have, some agencies
will not only help you obtain it, but will also cover the licensing fee.
travel logistics
The right agency partner will handle all your travel arrangements and
expenses and make sure you are as comfortable as possible while you are on
assignment.The agency should coordinate and pay for all rental car, housing,
and flight arrangements.The agency also should take into account your travel
preferences and rewards programs when making these arrangements.
availability
Your locum agency should be available at all times to answer questions or
concerns while you are on assignment.
breadth of opportunities
Consider working with an agency that offers more than traditional
locum assignments. A broad-based organization can provide you with
opportunities beyond practicing, such as consulting arrangements, interim
leadership roles, and program launches. This enables you to leverage the
skills and experiences that you have obtained throughout your career to
positively impact other organizations.
“In a case where an assignment
requires a license you don’t
have, some agencies will
not only help you obtain it, but will
also cover the licensing fee.”
15. 14
the next
stephow Medicus can help
Locum tenens assignments can be financially, professionally, and personally
rewarding experiences.Taking that first step can be overwhelming, but it doesn’t
have to be.The team at Medicus Healthcare Solutions is here to help you get started.
Medicus Healthcare Solutions provides hospitals, physician groups, and other
healthcare organizations nationwide with resources, services, and strategies to help
cover staff shortages,optimize service lines,and build-out departments.Clients turn
to Medicus for supplemental and permanent staffing, comprehensive consulting
services, program launch support, department restructurings, and help with
creating efficiencies throughout their hospital or health system.
Medicus is a full-service resource for physicians, hospitals, and healthcare
providers.We have exclusive arrangements with hundreds of hospitals and health
systems to fulfill their physician recruitment needs, providing opportunities not
available elsewhere.
Medicus offers specialty-specific recruiters and dedicated teams of
credentialing and travel professionals who provide customized career
management services to physicians. Our goal is to match your clinical and
geographical interests with the most suitable opportunities.
Unlike other staffing firms, Medicus offers services and benefits that lead to
exclusive preferred provider and long-term partnerships with hundreds of
healthcare facilities. By focusing on quality, commitment and accountability,
we have built long-term relationships with both physicians and hospitals.The
result is a proven history of success.
Elevate your path by calling at 1-844-217-1221 or email Maureen Cragon,
Director of Physician Recruitment at mcragon@medicushcs.com to begin
your locum tenens journey.
16. Logos Combination Usage
Consistency in the look and feel of the Medicus
and OPTIMUM brands in all media builds and
reinforces brand awareness.
When used in combination, the two brands
should appear in this setup and proportions.
When color or printing prohibits this, it may be
used in all black or reversed out to white.
Corporate Headquarters
22 Roulston Road
Windham, NH 03087
West Coast Office
550 S.Wadsworth Blvd, Suite 200
Lakewood, CO 80266
1-844-217-1221