When you start working as a locum tenens provider, you will be considered an independent contractor. Working in different states throughout the year may add complexity during your taxation time. You will have to file taxes in all the states you’ve worked which would certainly increase the expenses.
Although you experience these issues, locum-related benefits will outweigh them. You will even end up making more money while taking control of your working schedule. As you will be your own employer, you could enjoy multiple write-offs to mitigate your taxation costs.
Once you get to know the potential benefits of being a locum physician, you will certainly make arrangements according to your schedule.
Here is the list of taxation-related factors every locum tenens physician should be aware of.
As mentioned already, keep in mind that you are the employer of yourself. Although your contract is out to care facilities including clinics, private practices, and hospitals, you will be responsible for your taxation. So what does it signify?
The care facilities you contract with are called clients and not employers. Hence, they will not pay tax on your behalf.
Usually, employers withhold state and federal income tax, social security, and other related fees. When you are a locum tenens physician, you are responsible to pay those expenses from your annual income while filing an income tax return every year.
Unlike full-time employees, you will have to give up 401K and health insurance. Hence, independent contractors like you can demand higher pay since you take away the burden of these additional costs.
As locum tenens jobs involves more out-of-pocket expenses, you can claim varied deductions to mitigate the tax burden. Here is the list that you can make use of:
1. Health Insurance
Being your own employer, you should buy a health insurance policy either via a state exchange or private insurance provider. Pay the health insurance premium bill so that you can easily write off the amount you spent on the premium. By doing so, you can significantly reduce the tax amount by the end of the year.
2. Retirement Savings Plan
Choose the right saving plan so that you can save more for your retirement. Some are tax-deferred while others are tax deductible. Pay attention to understanding the difference so that you can save more while filing the income tax return.
3. Travel Costs
There are two possibilities:
The care facility you contract with will take charge of your travel costs, stay, and other expenses. In that case, they are not tax deductible since someone else is managing your costs.
On the other hand, if you have to pay these costs, you can pay and easily deduct them during the taxation period. You can deduct 100 percent of lodging and travel costs. Similarly, you can deduct 50 percent of meals, provided the contract duration remains only for less than a year.
Similarly, you can deduct automotive costs as well. It’s possible through the actual expenses or the mileage method. However, make sure to keep all the receipts for your expenses in place if there comes any audit.
4. Education Expenses
As a locum tenens care provider, you should continue your education and stay updated with credentials and licenses. As they are considered business expenses, you can deduct them while filing the income tax return.
The taxation period is not at all a doom and gloom for locum tenens. Still, there are many potential deductions available for extensive contracts. However, you should be careful about the limit that you write off every year in case you want to stay away from red flags with the IRS. Make sure to talk to a qualified and experienced tax specialist so that they can help you with more possibilities of legalized tax deductions.
Locum recruitment is more important than ever because the need for flexible healthcare staffing solutions has grown so much in the last several years. As more and more temporary physician jobs become available, healthcare staffing organizations are having to deal with a number of new problems. Finding the right applicants and dealing with complicated rules might make hiring locum doctors more difficult than it looks. Do you want to know what these problems are and how to solve them in 2025? Read on to learn about the seven biggest problems in locum recruitment and how healthcare companies may overcome them.
Challenges: One of the hardest things for healthcare staffing agencies to do is find the right team members to fill temporary physician jobs. There aren't enough qualified professionals available to meet the needs because the demand for healthcare services is expanding, especially in rural and undeveloped areas.
Solution: To fix this, healthcare staffing agencies should look for applicants from other countries and use specialized recruitment platforms to find them. Using social media and digital channels can help you find more possible locum doctors.
Challenges: Healthcare staffing agencies have a difficult time promptly hiring locum physicians because each state has its own specific licenses and credentialing rules. The paperwork and complications that come with this process might make it take longer to fill temporary medical jobs. Sometimes, doctors have to wait months before they can start their assignments.
Solution: One of the greatest ways to solve this problem is to make the credentialing process easier by buying equipment that can keep track of all the paperwork and applications in one location. Using cloud-based software or databases to keep track of licenses and credentials can cut down on how long it takes to get things done by a lot.
Challenges: Healthcare businesses are competing more for locum physicians since there is a high demand for them. This makes it difficult to find the best candidates. Agencies who don't offer competitive packages can lose good doctors.
Solution: Agencies should pay their workers well, including travel expenses, housing allowances, and flexible hours. It can also be useful to talk about the perks of locum tenens, such as a good work-life balance and the chance to travel.
Challenges: Locum physicians generally work on short-term contracts, which means they leave more often and healthcare facilities may not be stable, which can affect patient care.
Solution: To cut down on turnover, healthcare staffing companies and organizations can build good connections with locum doctors. Consistent work, fair pay, chances to move up in your career, and a supportive work environment with clear expectations can all help keep employees and make them happier at work.
Problem: Many healthcare staffing services only work in certain areas, which might make it hard to meet the demands of facilities in places that don't have enough staff. It is especially harder to find locum doctors in rural or bare areas because doctors are less likely to want to work there.
Solution: Agencies can reach more people by entering overseas marketplaces and giving doctors incentives to work in locations that don't have enough doctors. Temporary doctors may be more interested in remote assignments if they are offered help with moving, more pay for jobs that are hard to fill, and a good work environment.
Challenges: Ensuring that locum physicians’ skills align with the facility’s needs can be challenging. This mismatch may lead to dissatisfaction for both the healthcare provider and the physician.
Solution: Agencies should carefully assess both the client’s needs and the physician’s skills. A thorough intake process, including skill assessments and job expectation discussions, ensures a better match.
Challenges: Urgent staffing needs can create last-minute challenges for agencies, particularly when there’s little time to recruit qualified locum physicians.
Solution: Agencies should maintain a pool of "on-call" locum physicians who can fill urgent shifts on short notice, ensuring preparedness for emergency staffing needs.
Locum recruitment in 2025 presents unique challenges, but with the right strategies, healthcare staffing agencies like ProLocums can overcome them. By addressing the physician shortage, streamlining credentialing, offering competitive compensation, focusing on retention, providing incentives for rural placements, ensuring skill matching, and managing urgent requests, agencies can ensure that temporary physician jobs are filled quickly and effectively.
Managing a healthcare facility is not all about providing great patient care. It's about smart workforce planning and flexible staffing practices. Today, staffing gaps are becoming an increasing big problem in U.S. healthcare organizations. The U.S. Department of Health and Human Services (HHS) estimates that tens of millions of Americans lack primary care, dental, and mental health providers in their counties.
Dependence on full-time staff is no longer possible. With the need to cater to patient needs and sustain quality care, healthcare facilities have to turn more flexible when it comes to staffing. This is where locum doctor comes in, providing prompt assistance and keeping organizations operationally effective. Whether a big hospital or a remote clinic is doing a Google search by typing‘healthcare staffing agency near me’, locum partners can fill your staffing gap efficiently.
Although permanent personnel play an integral role in operations, too much dependency on them can lead to significant issues:
1. Inflexible Staffing
Patient throughput varies quickly through seasons of flu, natural disasters, holidays, or shifts in populations. Relying only on full-time staff members can lead to overworked teams during peak periods and idle staff during lean periods. This mismatch creates long wait times, elevated stress levels, and compromised patient care.
2. Skyrocketing Burnout Rates
More than 45% of doctors in 2023 were experiencing signs of burnout, and the majority were considering leaving the field altogether. Chronic staff is likely to feel overwhelmed to maintain pace with constant demand, rigidities, and institutional aims and thus become susceptible to exhaustion, dissatisfaction, and medical errors.
3. Geographic Mismatch
Clinician shortages are more acute in rural areas. Rural hospitals have difficulty recruiting and retaining full-time employees because career prospects are poor and there are fewer lifestyle amenities. The AMA estimates the number at 65% of rural communities that have insufficient primary care coverage, resulting in decreased access and continuity of care.
4. Disparities in Specialty Services
In smaller or distant centers, full-time specialists might not necessarily be employed. But without specialists, patients have to wait longer, receive referrals elsewhere, or even get turned down. This damages the facility's reputation and patient satisfaction.
This is where collaboration with a healthcare staffing agency near you offering locum doctors comes in as a difference maker. These pinch-hitting doctors, nurse practitioners, physician assistants, and dentists fill holes at the last minute or for scheduled coverage, providing continuity of care without burning out permanent staff.
1. Scalable and Flexible Support
Locum doctors can travel to fill openings during staff time off, patient spikes, or unexpected openings. They provide you with flexibility in staffing and avoid burnout without committing too much to long-term hiring.
Whether it is a flu season spike or an unexpected high rate of absenteeism, having a healthcare staffing agency nearby means you will never be short-staffed when you need them the most.
2. Avoiding Burnout
By providing cover during peak periods, holidays, or vacations, locum doctors prevent overtime stress on full-time employees. They restore work-life balance, enhance team morale, and preserve your long-term staff from burnout and turnover.
3. Closing the Rural Gap
Locum doctors are most useful in rural and under-served areas. Because they're willing to go on short-term travel assignments, they cover gaps in critical positions in such areas where recruitment is not possible. Having a good healthcare staffing agency opens doors to a national database of qualified doctors who are willing to staff where they're needed most.
4. Specialty Care on Demand
Locum specialists are available in every specialty. So, do you require coverage for a specialist out on leave or experiment with a promising specialty service? Locums do that easily without opting for full-time positions.
The outmoded model of staffing is no longer adequate in the modern healthcare climate. The dynamic workforce and increasing needs of the patient population necessitate flexible, affordable, and scalable staffing models. Locum providers offer just that.
By joining with a strong healthcare staffing agency like ProLocums, you can tap into the best experts who will bring continuity of care, minimize staff burnout, and enhance development in any type of community—urban, suburban, or rural.
If you're trying to pay off medical school loans while avoiding the rat race—or you're planning a more relaxed route toward retirement—a medical staffing agency might be exactly what you need. These agencies help healthcare professionals, including physicians, nurses, and allied health workers find temporary contract opportunities across medical facilities. Whether you're after flexibility, diverse clinical exposure, or high-paying contracts working through a staffing agency can help you meet your personal and professional goals.
Malpractice insurance proves to be the major pros of partnering with a credible healthcare staffing agency. These agencies typically offer full coverage, so you’re listed as an additional insured under the policy. Understanding key insurance terms—like claims made and occurrence-based policies or tail and nose coverage—is important.
Staffing agencies partner with hospitals, clinics, and rural facilities across the country, so you can work in various healthcare settings. This exposure not only enhances your clinical skills but also expands your professional network making you more competitive in the long run. Whether you want to try out a new region or test different specialties these contracts offer flexibility.
Continued education resources, help with licensing, travel logistics, and even housing arrangements are often part of the package. Great agencies also help with out-of-state credentialing so you stay compliant and up to date with your documentation. A strong credentialing department will notify you of expiring licenses or certifications before they become an issue.
With so many agencies to choose from it's important to find one that aligns with your values, goals, and preferences. Here are some tips:
Searching online for a healthcare staffing agency near me will help you narrow down options that fit your location and specialty needs.
Contract jobs offer great opportunities, but you need to take charge by excelling in temporary positions:
Medical workers now turn to staffing agencies to get flexibility and make more money. Those in the middle of their careers use agencies to test different work settings or travel. Professionals close to retirement take on short-term jobs to stay in healthcare but work less.
If you want to discover your options, looking up for a healthcare staffing agency near me is a smart way to begin finding jobs that fit both your goals and how you live your life.
A healthcare staffing agency offer more benefits in addition to finding jobs. They provide what you need to succeed, including help with insurance, credentialing, learning opportunities, and access to various roles in today’s fast-changing medical field.
If you want to move forward your career, ProLocums stands out as a great option. They link healthcare workers to clinics and hospitals all over the country. Their team provides custom support and contracts designed to match your goals. Whether you want more freedom new experiences, or better pay, ProLocums helps you land the right opportunity.
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