Is Locum Tenens Job Costly or Cost-effective for Your Organization?

The biggest myth we come across in our life is recruiting locum tenens (temporary care providers) is costly. People think that it requires more recruitment efforts in addition to high pay. Trust me! It’s not right. If their recruitment is costly, why would Fortune 50 companies like Amazon, Walmart, UPS, and Target appoint temporary workers?

So, here’s the fact. Locum tenens providers are in huge demand than ever before. In fact, 90 percent of hospitals in the US are employing locum tenens with a rise of 8-10 percent this year.

So, are you wondering why hospitals are employing locums if they are costly? The answer is very simple: Whatever you’ve heard about locum tenens recruitment is completely wrong. Recruiting locum tenens physicians can offer innumerable benefits for your care facility such as improving operational efficiency and increasing overall patient satisfaction.  Furthermore, locums will improve your bottom line – helping you increase net profits. Let me explain how with a simple example:

Imagine your healthcare facility named XYZ hospital has two full-time permanent invasive cardiologists. Let’s name them John and Peter. According to the 2013 Merritt Hawkins Survey Report, consider that both of them together earn revenue of more than 4.3 million USD for your facility every year.

Unfortunately, John became unwell due to some kidney problem and will not be able to work for the next two months. In that case, what will you do? You are left with three options:

Option 1:

Inform John to work on an overtime basis. The problem is nearly 60 percent of care providers experience burnout issues already on their jobs. Hence, this is not recommended as the right solution

Option 2:

John was already generating nearly $180,000 every month for your care facility. Hence, proceeding without coverage for the next two months can bring a loss of more than $360,000 in overall revenue.

Option 3:

Think about hiring a locum tenens provider for the next two months. Sign up for a locum staffing agency like ProLocums and post a job to find qualified locum providers to work in John’s place. In addition to that, you can cover all the insurance costs as well.

You might think that hiring a locum tenens for two months could turn out to be expensive. Here’s a smart calculation for you!

  •  The average cost of a locum invasive cardiologist comes to $66,000 (even after malpractice coverage)
  • For two months, the cost of a locum invasive cardiologist comes to $132,000 (66,000*2)
  •  Loss of revenue due to the absence of John for two months is equal to $360,000
  •  If you hire a locum invasive cardiologist, your care facility can earn an overall revenue of $228,000 ($360,000 - $132,000) for sure, if not $360,000

The outcome?

  •  Your care facility will still be earning revenue even if the permanent care provider is not available for a few months.
  •  Furthermore, you won’t lose patients due to a staffing shortage

Always keep in mind that the patients may not come back to your care facility if they receive care from somewhere else. Hence, it’s mandatory to retain them as well. Now you can make out whether hiring a locum is cost-effective or not. 

Final Thoughts

Hence, remember your bottom line: Start increasing more revenue while losing your patients to your competitors. Would you like to post a locum job for free and get the right locum candidate that suits your unique demands without any hassle? Connect with ProLocums, the locum staffing agency, right away to learn how our AI-based staffing platform helps you find the right locum tenens physicians quickly and easily for your healthcare facility. Sign up now! For any queries, email


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