A $50 billion parachute for rural healthcare is coming with the "Big Beautiful Bill." But will it be enough?
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: In July 2025, Congress passed the One Big Beautiful Bill, creating a $50 billion rural health fund intended to mitigate the impact of $137 billion in projected Medicaid cuts. The fund will allocate $10 billion annually over five years. The catch? Those dollars stop flowing just as the Medicaid reductions kick in. And with the Centers for Medicare & Medicaid Services under no obligation to explain how funds are distributed, rural facilities (including the 700-plus already at risk of closure) may find that success hinges less on funding size and more on how well it’s targeted.
Also in Digest: Why more hospitals are including locum tenens into their long-term plans, Doximity doubles down on AI with a $63 million acquisition, and why telehealth is now the norm for many rural healthcare patients. We also examine the biggest hurdles that healthcare staffing agencies face in 2025 and where the locums industry is expected to expand to in Q3 and beyond.
A $50 Billion Rural Health Fund Is Coming. Will It Go Far Enough?
August 4 | KFF
The One Big Beautiful Bill includes a $50 billion rural health fund intended to ease the blow of $137 billion in projected Medicaid cuts to rural areas over the next decade. Beginning in 2026, the fund will provide $10 billion annually for a period of five years. The challenge is timing: the money runs out in 2030, just as most of the Medicaid reductions are expected to take effect.
Half of the fund will be divided evenly among states with approved applications, regardless of rural need. The remaining funds will be allocated based on factors such as rural population size and the number of facilities. However, the Centers for Medicare & Medicaid Services (CMS) has considerable discretion. States may use the money to increase hospital payments, recruit healthcare workers, modernize systems, and expand access to opioid treatment. Although framed as rural-focused, some of the funding may be allocated to non-rural areas with CMS approval.
There is also concern about transparency. CMS is not required to publish how funds are allocated, and the bill leaves key definitions (like what qualifies as rural) open to interpretation. With more than 700 rural hospitals facing potential closure, the program’s success may depend less on its size and more on how effectively CMS and state agencies target the support.
La Vida Locum
5 Big Challenges for Healthcare in 2025 and the Locum Tenens Fix
August 12 | Caliber Health
Hospitals and health systems are being stretched in every direction in 2025, but locum tenens could be the perfect solution. Caliber Health recently diagnosed five of the largest issues facing the industry:
- Primary care expansion is difficult in a fee-for-service world
- Emergency department volumes are on the rise
- New workflows are challenging to implement with stretched staff
- Hospitals are trying to reduce the average length of stay
- Rural hospitals are facing unprecedented physician shortages
The good news? Locum tenens providers can help address all of these pain points. They provide hospitals with a flexible and cost-effective way to expand services without committing to permanent hires. Need to test a new care model or trial a workflow update? Locums bring the clinical bandwidth to support those efforts. In rural areas, they provide vital coverage when full-time recruitment isn’t feasible.
Of course, these issues require long-term policy and operational fixes. But in the meantime, locums provide a crucial buffer by buying time, preventing burnout, and helping systems stay functional while leaders work toward sustainable solutions.
Locum Tenens Could Be the Reset Button Radiologists Need
August 1 | LocumTenens.com
Radiologists are facing mounting pressure as imaging volumes surge and workforce shortages drag on. Many are seeking more flexibility, better compensation, and a means to reconnect with the reasons they initially chose a career in medicine. Locum tenens work offers all of that, but persistent myths about instability, unfamiliar settings, and inconsistent pay still give some providers pause. With the proper agency support, however, radiologists can secure well-compensated, steady assignments that align with their clinical goals and personal priorities.
A lot of hesitation comes from outdated assumptions. Many locum radiologists now out-earn their full-time peers, even when accounting for insurance and retirement contributions. For those craving consistency, long-term contracts in familiar regions are an option. The best staffing firms offer transparency around compensation, contract terms, and scheduling, helping providers feel confident and in control of their decisions.
But it’s not just about the paycheck. A 2025 survey found that while 90% of clinicians felt called to medicine at the start of their careers, more than half say that sense of purpose has faded. Locum tenens offers a path back. With fewer administrative burdens and more time focused on patient care, radiologists can rediscover the meaning behind their work and take ownership of how, where, and why they practice.
Telehealth in 2025: What Staffing Pros Need to Know
August 12 | CHG Healthcare
Telehealth is now a core part of care delivery, not just a pandemic-era tool. In 2024, 54% of Americans used virtual care, and nearly 90% preferred it for its convenience. Staffing teams must stay up to speed on cross-state licensing, credentialing by proxy, and Medicare updates. The Interstate Medical Licensure Compact streamlines multistate licensing, and rural hospitals are enhancing provider access by leveraging proxy credentialing.
Reimbursement remains a moving target. As of August 2025, 44 states and several territories have laws supporting telehealth payment or service parity. Medicare made many pandemic-era flexibilities permanent but cut average reimbursement by nearly 3% percent in 2025. Medicaid and private payors each follow their own rules, so billing teams and staffing partners must stay sharp to avoid delays and underpayment.
Locum tenens is gaining traction in virtual care. A 2024 CHG Healthcare survey found 59% of physicians were interested in telehealth locums work. Licensing and credentialing still apply, but many agencies offer support, including malpractice coverage. Facilities are expected to provide the tech, while agencies handle the rest, helping hospitals stay covered without missing a step.
Health Systems Make Temporary Staffing a Strategic Play
August 10 | Integrity Locums
Hospitals aren’t just plugging staffing gaps with locum tenens in 2025. More health systems are strategically integrating locums into their workforce planning to drive growth, explore new service lines, and stay agile. With staffing forecasts extending six to 12 months into the future, locums are helping facilities meet patient demand without the long-term overhead of permanent hires.
Whether it’s launching a new cardiology program, managing seasonal surges, or rolling out an EMR system, locums offer the flexibility to move fast and make changes when needed. Urban hospitals are relying on locums to support tech initiatives and handle peak volumes, while rural facilities can finally offer specialized care that would otherwise be out of reach. If a new service thrives, hospitals can hire with confidence. If it flops, they can pivot without triggering layoffs.
The most forward-thinking systems are partnering with staffing consultants like Integrity Locums to align workforce decisions with business goals. These firms bring in-depth analytics, financial modeling, and market expertise to help hospitals make locum staffing a long-term advantage. What was once a reactive solution is quickly becoming a proactive strategy and a competitive edge.
Rural Facilities Are Calling, and Locum Tenens Providers Are Answering
July 17 | Hayes Locums
Physician shortages are hitting rural communities the hardest. Although 20% of the US population lives in rural areas, only 10% of physicians practice there. That gap leads to serious consequences, including delayed diagnoses and higher rates of early mortality. Locum tenens providers are stepping in to close those gaps, giving patients faster access to critical services that might otherwise take weeks or even months.
Specialties such as psychiatry, emergency medicine, obstetrics, and primary care are in exceptionally high demand. Locums are helping rural hospitals manage seasonal surges, provide weekend or vacation coverage, and protect full-time staff from burnout. As demand for locum tenens grew by 15% in 2024, more rural hospitals are offering higher base pay and flexible schedules to attract top-tier talent. For physicians looking to make a difference, these assignments deliver both professional value and competitive compensation.
Many providers say rural locums work has been among the most meaningful of their careers. With more time to spend with patients and stronger ties to the community, these roles often remind clinicians why they chose a career in medicine in the first place. For those ready to serve underserved populations while enjoying greater freedom and flexibility, rural locum tenens offers a rewarding path forward.
Hire Power
AI Is Shaking Up Credentialing, but Human Oversight Still Runs the Show
July 25 | HIT Consultant
As staffing shortages persist, hospitals are turning to artificial intelligence to speed up one of the biggest bottlenecks in hiring: credentialing. Using machine learning, a process called algorithmic credentialing pulls from academic records, clinical experience, and verified inputs to match providers with specific roles. Hospitals using these tools say onboarding times have been cut by more than half, with fewer manual errors and improved compliance tracking across large networks.
The perks are clear. AI systems can integrate training completions in real time, help standardize evaluations for international providers, and reduce paperwork for hiring teams. However, the risks are real as well. Without clear oversight, these tools may misclassify providers or lead to hiring delays due to flawed data. And with little transparency in how some AI systems make decisions, providers may be left with few options to correct errors. As of July 2025, most countries have not yet updated their regulations to govern AI in credentialing.
Experts agree that AI alone isn’t the answer. A hybrid approach that combines human insight with AI efficiency is likely to win out. To make it work, hospitals need to invest in administrator training, regularly audit AI performance, and ensure that data privacy is protected. At its best, AI will empower people to make faster, smarter decisions about who’s qualified to deliver care.
Locum Tenens Continues to Outpace the Pack in Q3 2025
August 7 | Medicus Healthcare Solutions
The latest Healthcare Market Report for Q3 2025 confirms what many in staffing already know: locum tenens remains the leading trend. While other segments are slowing, demand for locum coverage is projected to grow by another 6% this year and 5% in 2026. As patient volumes increase and chronic conditions rise, healthcare leaders are incorporating locums into their workforce strategies early, rather than relying on them only to fill last-minute gaps.
Outpatient care is expected to experience significant growth, with more than 6 billion visits projected by 2035. Inpatient demand is also rising, albeit more gradually. To stay ahead, health systems are integrating locum staffing into their long-term planning. This approach enables them to scale services without overburdening their core teams or compromising patient access during growth phases.
Meanwhile, financial pressures continue to strain rural hospitals. Over 700 are at risk of closure, including 300 in immediate danger, according to the Center for Healthcare Quality and Payment Reform. As these facilities face critical staffing and funding challenges, locum tenens providers offer a vital lifeline. Their presence helps sustain access to care, stabilize operations, and protect revenue streams in underserved areas.
How Agencies Are Tackling 2025’s Toughest Locum Recruiting Hurdles
August 10 | ProLocums
Locum demand is still on the rise, but 2025 has introduced new recruiting challenges. Agencies are contending with a shrinking pool of candidates and intense competition for talent. To get ahead, firms are expanding their reach through global sourcing, niche platforms, and social media. But casting a wider net isn’t enough. To close the deal, agencies must lead with what matters most to clinicians: competitive pay, relocation support, and flexible contracts that align with their lifestyle goals.
Credentialing delays remain another major pain point. State-specific licensing requirements and cumbersome paperwork often extend onboarding timelines from days to months. Agencies using cloud-based tools and centralized tracking systems are cutting through the chaos, reducing errors, and speeding up the process. Once a physician is placed, retention becomes the next hurdle. Building trust through honest communication, consistent work, and fair contracts helps providers stick around longer and keeps client relationships strong.
Then there’s the problem of poor matches and last-minute scrambles. When time is short, the margin for error is razor-thin. Agencies that invest in proper vetting and skills assessments are more likely to get the match right the first time. Maintaining a standby pool of ready-to-go providers helps fill urgent needs without disrupting care. In an industry where uncertainty is a given, smart staffing strategies can make all the difference.
Making the Rounds
Why Telehealth Is No Longer Optional for Rural Health Care
August 11 | Telehealth.org
Telehealth has officially outgrown its “pandemic backup” label. In 2025, it has become essential for rural hospitals to stay competitive. Retail giants and digital-first healthcare companies are expanding into rural markets, offering virtual care that’s convenient, fast, and often more affordable. As patients become more comfortable with tech-enabled care, traditional facilities that don’t match that level of access risk losing market share quickly.
Beyond convenience, telehealth brings real value to both patients and providers. It reduces no-shows, expands reach across vast geographical areas, and provides clinicians with a tool to stay connected with patients between visits. For rural hospitals dealing with limited staff and unpredictable revenue, virtual care can help stabilize finances and improve care continuity. While it’s not ideal for every medical scenario, telehealth fills critical gaps without overloading in-person teams.
Within the walls of rural health systems, telehealth can also be a transformative force. It prompts necessary conversations around workflow updates, staffing models, and innovation in places where change tends to move slowly. Patients already expect it, and competitors are already delivering it. Rural facilities that still treat telehealth as an add-on are falling behind. At this point, it’s not a question of whether they can make it part of the core strategy, but rather how quickly they can do so.
Doximity Doubles Down on AI With $63M Pathway Medical Acquisition
August 7 | CNBC
Doximity is taking a big step into clinical AI with its $63 million acquisition of Montreal-based startup Pathway Medical. Known for its quick, evidence-based answers to guideline and drug-related questions, Pathway brings a powerful AI engine backed by one of the largest structured medical datasets in the world. The move strengthens Doximity’s push to become more than a networking platform for physicians.
Thousands of doctors are already testing the new tool in its beta phase. Doximity, once compared to LinkedIn for healthcare, now offers chart summarization, telehealth tools, and insurance documentation support. With Pathway on board it adds robust clinical decision-making to the mix. The AI model scored 96% on the US Medical Licensing Examination benchmark, making it one of the most credible physician-facing tools available.
The acquisition lands at a time when patients are increasingly turning to general-purpose AI for medical advice. Doximity is betting that physicians want something better: an AI trained on vetted medical literature, not web forums. With earnings on the rise and investor confidence growing, Doximity is staking its future on becoming a clinical assistant physicians actually trust to help deliver care.
Nominate a Charitable Program for the Heart of Healthcare Award
August 13 | LinkedIn (LocumTenens.com)
Know a hospital-based program that’s making a real difference? LocumTenens.com is now accepting nominations for its 2025 Heart of Healthcare Award, which recognizes charitable initiatives led by hospitals or healthcare organizations that are improving lives in their communities.
The winning program will receive public recognition and a $10,000 donation to support its mission. Whether it’s expanding access to care, addressing food insecurity, or providing mental health resources, the award aims to spotlight work that goes beyond the bedside.
Nominations are open through November 1, 2025. If your organization or one you admire is doing meaningful community outreach, now’s the time to share that story.
Sponsored Content
What Are the Most In-Demand Locum Tenens Specialties for 2025?
August 4 | OnCall Solutions
Demand for locum tenens physicians is expected to continue climbing in 2025, with certain specialties feeling the pressure more than others. Family medicine, internal medicine, and hospitalist roles are leading the pack thanks to their versatility and ongoing rural access needs. Anesthesiology and CRNA roles remain among the highest-paying assignments, driven by ongoing operating room staffing shortages and increasing surgical demand.
Emergency medicine, OB/GYN, psychiatry, and gastroenterology are also seeing strong demand, each driven by unique challenges. Emergency departments are overloaded, maternity care deserts are growing, mental health needs continue to rise, and the GI workforce is aging fast. Locum assignments in these fields offer high earning potential and flexibility, while giving clinicians a way to support systems struggling with burnout and turnover.
As the pay gap widens between permanent and locum roles (especially in underserved areas), more physicians are exploring temporary work as a long-term option. The rise of telehealth in psychiatry and urgent care has added even more flexibility. For staffing professionals, tracking trends in provider retirements, regional shortages, and APP utilization will be key to meeting the moment.
