As the physician staffing industry increasingly adopts AI, failure to adapt could leave you behind.
Welcome to Locums Digest, Locumpedia’s free bi-weekly roundup of industry news and trends that helps locum tenens agencies and healthcare facilities make informed business decisions.
In this edition: AI adoption has been a long time coming in the healthcare staffing world, and the payoff may finally be in sight. According to SIA, nearly half of staffing firms are experimenting with AI, and early adopters are far more likely to report revenue gains. It’s no secret why: automation removes low-value work, reduces errors, and increases efficiency.
Also in Digest 101: Velosource receives a major private equity investment, locum tenens is projected to reach a $9.6 billion valuation in 2025, and locum hematology/oncology jobs are on the rise. Plus, we look at why the FTC issued a warning over physician noncompete clauses and how locums can serve as a lifeline for rural healthcare systems under pressure.
Why AI Is No Longer Optional in Staffing Finance
September 16 | Access Capital
Artificial intelligence is no longer a “nice-to-have” in staffing. Early adopters are winning faster deals, protecting margins, and commanding stronger valuations. Clients now expect agencies to use automation for speed and transparency, while competitors with leaner, tech-enabled operations can undercut prices without sacrificing profit. Put simply, manual processes slow you down and signal higher costs to business partners.
Recruiting is where the payoff is first evident. Resume screening, sourcing, and scheduling take minutes instead of hours, boosting submittals per recruiter and shortening time-to-fill. On the back end, automating payroll, compliance, and invoicing reduces errors and speeds up cash flow. The result is more placements and healthier margins, without adding overhead.
The valuation story is just as clear: buyers reward scalable, efficient firms with higher multiples. Agencies clinging to manual workflows face erosion of margins, liquidity pressure, and limited exit options. To stay current, Access Capital recommends selecting one high-volume workflow, piloting automation, tracking ROI, and then scaling it up. From there, you can prove the results to potential clients and move on to the next task. While AI won’t be replacing staffing departments anytime soon, it is a financial necessity that firms need to be aware of.
La Vida Locum
Why Locum Retention Matters as Much as Long-Term Hiring
August 21 | Hayes Locums
Recruiting for retention doesn’t always mean hiring full-time physicians. For many facilities, cultivating long-term relationships with locum tenens providers is a more sustainable strategy. While some locums are open to permanent roles, many opt for contract work due to the flexibility, autonomy, and work-life balance it offers. Facilities that encourage locums to return for recurring assignments can achieve consistent coverage and continuity of care without locking into costly long-term contracts.
Locum assignments also function as an extended interview process. Hospitals can assess how well a provider integrates with the team and community before committing, while physicians gain firsthand experience of the facility’s culture. This two-way evaluation reduces the risk of costly mismatches common in permanent hires. By working with a locum for several months, a facility can build confidence in the partnership while maintaining uninterrupted patient care during ongoing recruitment efforts.
Retention in the locum space depends on more than pay. Flexibility, clear communication, and professional development opportunities are critical to keeping providers engaged. Hospitals that offer clinical support, mentorship, and a sense of belonging are more likely to see locums return for future assignments. Ultimately, investing in locum retention strategies not only helps ensure dependable coverage but also strengthens the foundation for long-term partnerships that benefit both facilities and providers.
Locum Physicians Deliver the Same Quality of Care as Staff
September 9 | CHG Healthcare
Multiple large-scale studies have confirmed what many in the industry already know: locum tenens physicians provide patient care on par with their staff counterparts. A Harvard-led analysis of nearly two million Medicare patients found no significant difference in 30-day mortality rates between the two groups, while a University of Toledo study showed locum physicians even helped reduce hospital stays and cut costs per patient. For facilities worried about continuity, the data offers reassurance that quality isn’t compromised when locums step in.
Productivity differences are largely attributed to the onboarding and acclimation process. Yet, across studies, readmission rates, admissions, procedures, and overall outcomes showed no statistical gaps between locum and staff physicians. In some cases, locums even improved financial performance, delivering 23% lower hospitalization costs compared to staff hospitalists.
The research also challenges a lingering misconception among some physicians that locums provide lesser care. Experienced locum providers emphasize that they bring the same skills, compassion, and patient focus to each assignment, often with fewer administrative distractions pulling them away from the bedside. Far from being stopgaps, locums frequently build meaningful relationships with patients and help facilities maintain high-quality care without sacrificing consistency.
Hematology/Oncology Locum Jobs on the Rise in 2025
August 20 | Barton Associates
Cancer care demand is rising faster than the workforce can keep pace. By 2025, the US hematology/oncology workforce is expected to meet only 96% of patient demand, with the shortfall projected to widen to 93% by 2037. Burnout and an aging physician base are accelerating the gap, leaving hospitals and cancer centers scrambling for coverage solutions.
Locum tenens hematology/oncology physicians and advanced practice providers are becoming indispensable. With only 3% of oncologists practicing in rural areas, locums ensure access where it’s otherwise scarce, while also helping facilities structure care teams more efficiently. By leveraging locums, hospitals can maintain continuity of care, allowing full-time physicians to concentrate on complex cases and research initiatives.
Staffing demand is especially acute in California, Oregon, North Carolina, Ohio, New York, Pennsylvania, Illinois, and Connecticut, but shortages are felt nationwide. For facilities, locums provide immediate, high-quality expertise that fills critical gaps without waiting years for the pipeline to recover. For staffing agencies, oncology represents a high-growth specialty where strategic recruitment and provider retention will be key to sustaining care delivery.
Locum Tenens as a Lifeline for Rural Hospitals
September 15 | MPLT Healthcare
Rural hospitals and clinics continue to face significant challenges due to workforce shortages, limited funding, and increasing burnout. In some communities, these pressures have already led to service cuts or full closures. Locum tenens staffing provides a viable safety net, enabling facilities to sustain operations, protect their permanent staff, and maintain continuity of care without committing to long-term contracts.
Locum providers are filling gaps across emergency departments, primary care, and specialty services. They stabilize teams during turnover, cover seasonal surges, and prevent everyday scheduling challenges from becoming systemic crises. By easing the workload, locums also help safeguard permanent staff against burnout, a key factor in retaining rural clinicians in practice.
Beyond core coverage, locum staffing enables facilities to introduce or expand services that might otherwise be unavailable, like psychiatry, anesthesia, and other specialties critical to community health. For many rural systems, steady locum support has made the difference between reducing hours and keeping doors open. Increasingly, locums are a critical strategy for hospitals determined to deliver consistent, local care.
Locum Leaders
VeloSource Secures Growth Investment from Interlock Equity
September 11 | PR Newswire
VeloSource, a St. Louis–based locum tenens staffing firm, has landed a strategic investment from Los Angeles private equity group Interlock Equity. Brokered by Brett Pantazi of Nolan Associates, the partnership aims to accelerate VeloSource’s national expansion, deepen its specialty expertise, and strengthen its technology platform. Founders Jeff Schaal and Patrick Donovan emphasized that the deal will fuel growth while preserving the company’s people-first culture and client-focused mission.
Interlock Equity leaders noted that VeloSource is well-positioned to bridge provider shortages with skilled locum tenens professionals. The firm’s reputation as a destination employer and trusted partner made it an attractive investment. With industry tailwinds on their side, the collaboration is designed to boost scale while enhancing the experiences of both providers and clients.
Recognized by Staffing Industry Analysts in 2025 as a “Best Staffing Firm to Work For,” VeloSource already works with hospitals, health systems, and physician groups nationwide. Backed by Interlock’s capital and expertise, the company plans to expand its reach and cement its standing as a premier locum staffing partner delivering both workforce stability and patient care continuity.
Healthcare Staffing Set to Stabilize in 2025, With Growth Ahead
September 8 | Staffing Industry Analysts
After several turbulent years, the healthcare staffing market is expected to level out. Staffing Industry Analysts projects US healthcare staffing revenue at nearly $40 billion in 2025, a 6% dip from 2024, before modest growth of 2% in 2026. While segments like travel nurses, per diem nurses, and allied health professionals are contracting, locum tenens continues to expand, driven by physician shortages and demand in core specialties such as primary care, emergency medicine, and surgery.
Travel nursing is forecast to decline again in 2025 to roughly $14 billion, although hospitals are experimenting with new models, such as alternating weekly schedules, to manage costs. Per diem nursing and allied health will see smaller declines before rebounding in 2026, supported by local staffing demand and outpatient service growth. International nurse staffing, projected to reach $1.3 billion in 2025, is also gaining traction, although it remains constrained by visa and immigration bottlenecks.
Locum tenens stands out as the fastest-growing segment, projected to reach $9.6 billion in 2025. Persistent physician shortages, aging clinicians, and rural demand continue to fuel momentum, even as rising pay rates put pressure on margins. Looking ahead, SIA notes that firms embracing AI-enabled recruitment, building clinician trust, and adapting to regulatory shifts will be best positioned to thrive in a market stabilizing near $40 billion.
Matthew Goudy Named Chief Operating Officer of MDstaffers
September 3 | MDstaffers
MDstaffers has appointed Matthew Goudy as Chief Operating Officer, where he will oversee commercial functions with a focus on accelerating growth and strengthening client and clinician services nationwide. Goudy brings more than 15 years of experience in physician staffing and locum tenens, having previously held senior leadership roles that drove national sales, recruitment, and delivery operations. His background includes partnering with health systems, government agencies, and medical groups to scale staffing solutions and address critical workforce shortages.
CEO Ryan Larkin praised Goudy’s leadership and growth track record, noting his alignment with MDstaffers’ mission. Goudy highlighted the company’s strong foundation and market opportunity, emphasizing his goal to channel momentum into sustainable growth and innovation. MDstaffers, a national healthcare staffing firm, specializes in placing physicians, advanced practitioners, and mental health clinicians across both locum tenens and permanent roles, supporting organizations ranging from major health systems to private practices.
Medstaff Celebrates 40 Years
September 19 | Medstaff National Medical Staffing
Medstaff National Medical Staffing is marking its 40th anniversary with a forward-looking message of evolution, not just celebration. Over four decades, the firm has built trusted relationships with thousands of physicians, placing providers everywhere from rural ERs to large hospital systems. The company highlights its role in supporting clinicians with flexibility and respect while helping facilities deliver consistent patient care.
Looking ahead, Medstaff says its “Next 40” will focus on deepening its commitment to healthcare professionals and the communities they serve. With industry shifts accelerating, the firm positions itself as ready to adapt through innovation and sustained partnerships. The milestone doubles as both a celebration of past impact and a signal of continued investment in the future of healthcare staffing.
Jackson Healthcare Named One of Fortune’s “Best Workplaces in Healthcare” for Eighth Year in a Row
September 19 | Jackson Healthcare
Jackson Healthcare has been named to the 2025 Fortune Best Workplaces in Health Care list, marking its eighth consecutive year of recognition. The company ranked among the top 10 organizations for workplace culture, based on employee feedback collected through Great Place to Work’s Trust Index Survey. The distinction highlights practices that build trust in leadership, strengthen team connections, and promote loyalty, factors increasingly tied to retention and organizational performance in healthcare staffing.
This honor adds to Jackson Healthcare’s growing list of workplace recognitions, including spots on the Fortune 100 Best Companies to Work For and PEOPLE Companies that Care lists, as well as its ninth year of Great Place to Work Certification. Now celebrating its 25th anniversary, the organization positions its workplace culture as central to its mission of supporting healthcare facilities nationwide. The recognition highlights the importance of organizational culture in attracting and retaining talent amid ongoing workforce challenges.
Hire Power
FTC Warns Healthcare Employers Over Noncompetes
September 10 | Becker’s Hospital Review
The Federal Trade Commission issued warning letters on September 10, 2025, to several major healthcare staffing firms and employers, urging them to review employment agreements for potentially unlawful noncompete clauses. Regulators argue these restrictions can unfairly limit job mobility for physicians, nurses, and other clinicians, especially in rural areas where access to care is already fragile.
FTC officials emphasized that enforcement against overly broad or unjustified non-compete agreements remains a top priority, even after the commission withdrew from defending the Biden administration’s proposed nationwide ban, which was struck down in court. Employers were encouraged to scrutinize their contracts to ensure compliance with existing antitrust laws under Section 5 of the FTC Act.
Although the blocked federal ban eased immediate regulatory pressure, the FTC made clear that actions against anticompetitive practices are not slowing down. Healthcare staffing firms must be aware that restrictive agreements that hinder provider mobility or patient choice could lead to investigation and enforcement.
Aya Healthcare Pushes Platform-First Workforce Strategy
August 26 | Aya Healthcare
The future of healthcare staffing may hinge on platform-first models, according to Aya Healthcare’s Chief Product Officer, Jason Drucker. By consolidating sourcing, scheduling, credentialing, billing, and analytics, hospitals can move away from siloed systems and manual processes. The promise is fewer blind spots, streamlined workflows, and workforce decisions tied directly to financial outcomes.
Aya’s LotusOne platform aims to address one of hospitals’ biggest frustrations: fragmentation. Acting as a single source of truth, the system provides visibility into labor costs, vendor performance, and staffing allocations. Features such as predictive analytics, real-time dashboards, and automated compliance tools equip HR teams and executives to manage gaps more efficiently, reduce administrative waste, and support retention.
For facilities still leaning on disconnected point solutions, Drucker suggests asking, “Do current tools offer true visibility and data-driven decision-making?” With labor shortages unlikely to ease, he argues that unified platforms are less about IT upgrades and more about long-term strategy. The goal is to align staffing operations with clinical and financial sustainability, giving healthcare leaders the agility to navigate ongoing workforce challenges.
Workforce Pressures Keeping Healthcare CHROs Awake in 2025
September 5 | AMN Healthcare
Healthcare Chief Human Resource Officers are confronting a perfect storm of talent shortages, rising labor costs, and mounting burnout. Even as patient demand grows, vacancy rates for nurses and advanced practitioners remain high, pushing hospitals to lean on costly overtime and contract labor. Experts from AMN Healthcare’s webinar and the Elevate Care podcast argue that pipeline strategies alone are no longer enough. Facilities must strengthen partnerships with schools, streamline credentialing, and double down on onboarding and retention.
At the same time, labor expenses continue to climb, fueled by sign-on bonuses, premium rates for travel staff, and extended overtime. To regain control, HR leaders are turning to workforce analytics for real-time visibility into staffing spend, vacancy impacts, and team efficiency. Data dashboards are proving essential for making fast, evidence-based adjustments that balance savings with care quality.
The human toll remains one of the toughest challenges. Burnout and disengagement threaten retention, making flexible staffing models more attractive than ever. By blending permanent, temporary, interim, and leadership talent, CHROs can cushion against disruption while creating new pathways for mobility and growth.
Emergency Medicine Is Under Pressure, and Locums Can Help
September 4 | Medicus Healthcare Solutions
Emergency medicine is feeling the weight of rising patient volumes, long ED boarding times, and persistent physician burnout. With more than 66,000 emergency medicine doctors nationwide, the workforce is projected to grow modestly at 3% through 2033. Still, the gap between patient demand and available coverage continues to strain EDs, leaving both providers and patients vulnerable.
Locum tenens is poised to be a crucial part of the solution. Roughly 15% of emergency physicians already work locum assignments, making the specialty the second most searched among locum jobs. Hospitals are relying on these interim providers to bridge staffing gaps, cover surges, and relieve overworked permanent staff, all while ensuring continuity of care in high-pressure environments.
Addressing the strain requires a two-pronged strategy of smarter workforce management and locum support. Data-driven staffing, triage optimization, and balanced workloads can reduce bottlenecks and burnout, while locums provide immediate relief in areas with acute shortages. For rural and underserved communities in particular, locum coverage can mean the difference between closed beds and timely, life-saving care.
Why Recruiters Still Matter in the Age of AI
September 6 | Tandym
Staffing firms are increasingly blending artificial intelligence with traditional recruiting to manage growing candidate databases more efficiently. Tandym Group’s Catalyst platform, for example, uses AI to parse resumes, track communication patterns, and generate plain-language candidate profiles for hiring managers. The goal is to reduce administrative noise and highlight relevant matches faster.
Even as platforms evolve, recruiters continue to provide the judgment and context AI can’t replicate. Identifying a candidate’s true level of interest, evaluating soft skills, and guiding individuals through career transitions remain human-led processes. Recruiters also play a role in coaching, managing counteroffers, and maintaining post-placement relationships, all of which are critical factors in long-term retention.
Industry observers note that while AI speeds up sourcing and screening, it does not eliminate the need for human involvement. Instead, the trend suggests a hybrid approach that combines technology for efficiency with recruiter insight to ensure placements align with both the candidate’s and facility’s needs.
Sponsored Content
Locum Psychiatrists Bring Behavioral Healthcare Within Reach
September 3 | OnCall Solutions
The US faces a growing behavioral health emergency as more than 122 million people live in federally designated shortage areas, and in some counties, there are no practicing psychiatrists at all. Patients often wait more than two months for an appointment, leaving primary care physicians to manage complex mental health cases outside their training. The result is delayed treatment, rising emergency department volume, and worsening care gaps.
Locum tenens psychiatrists and psychiatric nurse practitioners are increasingly being used to bridge those gaps. These providers can step in quickly to cover vacancies, absorb demand surges, or expand programs. Many bring subspecialty expertise in areas such as addiction, geriatrics, or child psychiatry, and they often have experience across inpatient, outpatient, crisis, and telehealth settings. Their flexibility allows facilities to reduce wait times and maintain continuity of care while protecting existing staff from overload.
For hospitals and clinics, partnering with locum psychiatry providers is more than a temporary solution. It offers stability while longer-term hiring continues, supports consistent patient care, and enables sustainable growth of behavioral health services. In both rural and urban settings, locums are proving to be a critical stopgap in a system under strain.
