Locum tenens work is becoming more widespread, and more physicians and APPs are intrigued each day by its promise of work-life balance and extra income.
But knowing how to get started isn’t necessarily straightforward. Providers must learn about contracts, agencies, licensing… the list goes on.
Fortunately, in a recent interview on the OJM Wealth Podcast with David Mandell, partner at the OJM group and author of “Wealth Planning for the Modern Physician”, Locumpedia Founder Cory Kleinschmidt offered invaluable insights for providers considering locum tenens work. From jumping into the lifestyle to navigating paperwork, Cory’s advice provides a roadmap for physicians and APPs interested in exploring this path.
Check out the 2-part interview or get the highlights below.
What’s Driving the Shift Towards Locum Tenens?
One of the first things Cory and David discussed was why locums, and why now? The locum lifestyle is blowing up in a big way, especially among younger providers, but this wasn’t always the case.
Locum tenens was once seen primarily as a “necessary evil” for filling gaps in rural areas or covering for physicians on vacation. But things have changed in the past decade, especially since the pandemic. Locum tenens is no longer just a backup plan; it’s often a preferred solution for facilities and healthcare providers.
Many hospitals now see locum tenens as a strategic tool, offering flexibility and a chance to “test” a physician before bringing them on permanently. For doctors, locum tenens work provides a refreshing change of pace, more control over their hours, and extra income without the burden of niggling administrative tasks.
According to Kleinschmidt, “Locum tenens is a convenient solution to a lot of systemic problems that had cropped up in healthcare, like chronic physician shortages and rampant burnout among providers.”
He reiterates that locum tenens will remain a valuable resource for facilities and providers alike as long as it offers a solution to these systemic problems.
The “No-BS” Way to Get Started
So, locum tenens isn’t going anywhere, and it sounds interesting. What’s the first step? Kleinschmidt said it’s all about doing the homework and getting informed. “The more you know upfront, the more successful you’ll be,” he advises.
Conveniently, Locumpedia’s No-BS Guide to Locum Tenens is a great place to start. He says it offers comprehensive information about the ins and outs of locum tenens work. But it doesn’t stop there.
He also recommends staying informed by subscribing to Locumpedia’s Locum CME for biweekly news updates on industry trends, innovations, and more. “We cover everything from staffing shifts to the growing role of artificial intelligence in medicine,” he explained, emphasizing the importance of staying on top of the changes shaping the healthcare landscape and provider careers.
In addition to reading up on logistics, Kleinschmidt suggested speaking directly with other physicians in the locum game. “Getting firsthand testimonials is key. You’ll learn about what worked, what didn’t, and what you should expect from the [locum] lifestyle,” he said.
How To Find the Right Agency
With over 200 locum tenens agencies in the country, how can providers choose the right one? Kleinschmidt breaks it down: “Look for agencies that align with your values and career goals. You’ll want to consider their reputation, the kind of jobs they offer, and how they communicate with you.”
Kleinschmidt recommends a larger agency for physicians who want the assignment process to be as hands-off as possible. On the other hand, a smaller agency might be a better fit to build rapport with recruiters long-term and have unique needs met, like working in a specific part of the country. “Smaller agencies tend to be more flexible with pay and have closer relationships with their providers,” he noted.
Regardless of the agency’s size, he reiterated that doing the proper research is critical. “Check online reviews, ask colleagues about their experiences, and make sure you understand what each agency specializes in.”
Some large agencies handle all sorts of assignments, but Kleinschmidt also mentions there are niche ones that only work in a single specialty. For example, Cancer Carepoint only works with oncologists, so they might have insights into those assignments that providers can’t get anywhere else.
When creating a CV for locum tenens work, he recommends considering an ideal assignment. Unlike permanent roles, locum tenens work isn’t about applying for a job. Instead, physicians work with a recruiter who matches them with the right assignments. He says providers should focus on showcasing their past work and specifying their preferences, whether it’s flexible scheduling, specific locations, or maximizing income.
A License to Credential
(With apologies to The Beastie Boys)
After finding the right agency match, the next step is getting set up to hit the ground running. This starts with licensing and credentialing, which can feel like a paperwork nightmare. But with the right prep, it’s more like a walk in the park… a walk in a really elaborate bureaucratic park.
Kleinschmidt acknowledged that the process can be time-consuming, but it’s also manageable with the proper preparation. “Decide which states you want to work in and start the licensing process as soon as possible,” he advised.
Some agencies now offer assistance with licensing, which Kleinschmidt suggested providers should take advantage of, especially if they’ve already worked with an agency before. “If you’ve established a relationship with an agency, they may be able to help you get licensed in new states,” he explained.
Another resource he mentions is the Interstate Medical Licensing Compact, a growing initiative that makes it easier for physicians to practice across state lines. This compact allows providers to work in 40 states, providing more flexibility for frequent travelers, he discusses.
Agreeing to Agree
Once providers have found an assignment, the next step is reviewing the work agreement. Kleinschmidt walked through the essential components of a locum tenens agreement, including pay rates, scope of work, and contract duration. “It’s important to understand your compensation structure and any reimbursements for travel, lodging, or malpractice insurance,” he said.
He says pay generally works as follows: As a basic example, suppose a provider works with a firm that charges a hospital $100 per hour for a physician’s services, and they agree to pay them $70 per hour. The remaining $30 (or 30%) is their margin, which they keep as the fee to locate the client and manage the assignment.
But here’s the kicker: Most of the time, the margin is negotiable. While many staffing firms aim for a 30-35% margin, some are willing to accept a lower percentage, depending on their business needs. The more research providers do, the better equipped they’ll be to negotiate a favorable deal.
But pay isn’t the only thing to think about. He notes other negotiable contract details, like housing accommodations and potential contract extensions. “If both you and the facility are happy with the arrangement, there’s often room for an extension or even a chance to go permanent,” Kleinschmidt added.
He finishes by reiterating that it’s all about understanding value and negotiating personalized terms. Physicians get to call the shots and be their own bosses, but with better hours and no paperwork.
Ask Yourself if Locum Tenens is Right for You
Locum tenens isn’t just a career path; it’s a lifestyle that can free you up to travel and forget all about administrative headaches. Life on the road isn’t for everyone, but for those who value autonomy, flexibility, and increased earning potential, it’s worth considering. “Do your research, ask questions, and make sure locum tenens aligns with your personal and professional goals,” Kleinschmidt concluded. With the right preparation, locum tenens can provide a fulfilling career.
Ready to take the reins of your career? Dive into the No-BS Guide to Locum Tenens, check out our job board, and start building the career and lifestyle you’ve always wanted.
