Is Locums Right for Me?

Making the choice between employment and locum tenens involves a range of factors. In this guide, we’ll help you break down some of the differences between being an employee and a locums contractor and help you choose if locum tenens is right for you.

What is locum tenens?

Locum tenens is Latin for “to hold the place of.” Locum tenens refers to physicians and advanced practice providers who take temporary assignments at hospitals, clinics, or medical facilities to fill staffing gaps. Locum tenens roles can range from a few days to more than a year and be part-time or full-time. It is estimated more than 90% of healthcare facilities in the U.S. use locum tenens to cover gaps in staffing created by vacations, staff shortages, or high patient volume. Facilities will even use locum tenens to “try out” a clinician before hiring them.

And while locum tenens and per-diem work both fill temporary gaps, per-diem jobs usually don’t have a fixed schedule and are set up directly between facilities and clinicians. Locum tenens clinicians work with a staffing agency and sign contracts with fixed starting and end dates. When working locum tenens, clinicians receive benefits like paid malpractice coverage, housing, and travel stipends.

Clinicians work locum tenens jobs as part-time supplemental income or as full-time careers. Locum tenens offers incredible advantages for clinicians. From reduced burnout to increased flexibility, locum tenens could be the career boost you’ve been longing for.

Why should I consider locum tenens?

How would you like to keep practicing medicine and regain control over your schedule? What would it be like to earn extra income or try out a new situation without committing to a long-term contract? What if you could take as much vacation time as you want and still earn a high salary?

As a locum tenens professional, you get to call the shots. You can reimagine your career without sacrificing your personal goals. Each assignment offers the chance to explore different areas of medicine and to work with people from all walks of life.

The benefits are numerous, and include:

• Control over your schedule and availability – work as much or as little as you wish. Schedule your vacations months or years in advance. Work whatever schedule you want.
• Increased income – most locums positions offer significantly higher pay than if you were a W-2 employee.
• Travel the country – experience new locations, cultures, communities, and ways of doing things.
• Have true time off – don’t get dinged by notifications that someone needs something. With locum tenens, when you’re off, you’re off.
• Experience new ways of doing things – learn new systems, new techniques, or different styles.
• Upgrade your CV – add new skills, experiences, and techniques to your CV quicker than if you were in a long-term contract.
• Reduced burnout – You matter. Your mental health matters. Reduced administrative burdens and true time off protects your mental health.
• Fulfillment – spend more time with patients instead of paperwork. Get back to why you got into healthcare in the first place.
• No long–term contracts – change facilities and locations as much or as little as you want. Try out a facility before committing.

How are locum tenens different from employees?

Locum tenens jobs can span from a few days to a few months to even several years, making it feasible for physicians and advanced practice providers to do locum tenens to earn money on the side, try out a facility before committing to permanent employment, or as a full-time career. But what are the differences between employment and locum tenens?

Most physician and clinician careers are employment-based, which means you receive consistent pay for a set number of hours. Employees pay for their taxes and benefits through deductions from their gross income and, in some cases, direct contributions. Employers pay for some portion of the employees’ taxes and usually a portion of benefits as well.

Being an employee usually provides a predictable work environment, often with a consistent schedule. Comprehensive benefit packages, including health insurance, retirement plans, and paid time off, contribute to overall job security and well-being. But employees often get mired in administrative work, receive limited time off, and get stuck in long-term relationships. Many clinicians experience a loss of autonomy and miss working directly with patients. And nearly all of them work more than the set number of hours for their pay, blurring the line between work and personal life.

On the other hand, locum tenens is a short-term contractor relationship. Locum tenens physicians and advanced practice providers operate as a separate entity from the healthcare facility they are stationed with, often operating their own business or working as self-employed professionals. Locum tenens professionals choose when and where they work, providing them with control over their schedules and the ability to take time off between assignments. Part-time and full-time contracts are common, with specific contract language for compensation above the agreed hours. Many locums clinicians can schedule vacations and time off months or years in advance. There is also no expectation of “staying late” or checking your messages from home. When a locums clinician walks out of the facility, they know they’re off work.

Locum tenens physicians and clinicians have the potential for higher earnings due to the urgent nature of most locums assignments, the location of the facility, or the high demand of their specialty. They can avoid long-term commitments and travel the country on facility expense while still earning a higher hourly wage than W-2 employees. Locum tenens physicians and clinicians get to spend more time with patients and their cases since they don’t have the administrative burdens of permanent staff. Higher patient satisfaction and reduced medical errors are often the result, and locums clinicians report higher job satisfaction than their counterparts.

While there is plenty of general advice available, most accountants and advisors do not specialize in locum tenens. The realities of multi-state work, locums lifestyle, and contractor tax planning require specific expertise.

How does locum tenens affect my finances?

As a locum tenens professional, you can design your career without sacrificing your personal goals. In fact, being a locum tenens provider will likely expedite them. That’s because most locum tenens jobs have lucrative pay that allows you to reach your financial goals faster. Pay off your student loans, invest in your future, or live the lifestyle you crave. Or all of the above!

Facilities typically offer higher rates to attract skilled clinicians quickly, especially in high-demand specialties, remote areas, or urgent situations. Because they aren’t paying for your taxes or benefits, all that money is usually routed to you in the form of higher pay. In addition, most assignments include housing, transportation, and utilities and opportunities for overtime (should you choose it). In fact, some career locums clinicians put their belongings in storage and work full-time as a locums clinician, saving substantial money on housing and transportation.

Unlike traditional W-2 employees, locum tenens clinicians are typically classified as 1099 independent contractors. This means you’re responsible for managing your own taxes, retirement, and insurance. For many, the biggest anxiety is health insurance. The lack of coverage keeps many physicians and clinicians from trying locum tenens as a career. The healthcare marketplace may feel daunting to navigate, and many plans are expensive and not tailored enough for the locums lifestyle (especially between assignments).

However, Floyd Lee Locums offers a Group Health Benefits Plan that covers you and your family, even between assignments. The ability to join a group plan gives you more savings, better coverage, and peace of mind. And our plan isn’t limited to just health insurance. It offers health, life, and disability plans to cover all of life’s medical surprises and keep you healthy (and earning more!).

As an independent contractor, you have more freedom in saving for retirement than you would in a traditional job. When you work locum tenens, you have the ability to customize how you fund your retirement. No longer are you limited to your employer’s 401(k) plan. As a self-employed independent contractor, you act as both the employer and the employee. This flexibility allows you to contribute more money to a self-employed retirement account than you would as an employee. Additionally, locum tenens providers can use other options like an SEP-IRA or Backdoor Roth IRA, as well as take advantage of a Health Savings Account (HSA) for tax-protected growth. You have the ability to diversify your retirement to protect it long-term. This flexibility allows you to balance current lifestyle preferences with long-term wealth building.

Understanding your tax responsibilities when transitioning to a locum tenens career as a physician or advanced practice provider can seem daunting. Unlike traditional employment, where taxes are automatically withheld, locum tenens professionals are responsible for managing their own tax obligations.

This means you’re responsible for managing both the employee and employer portions of Social Security and Medicare taxes (commonly referred to as self-employment tax). However, locum tenens clinicians can deduct many of their expenses. Here are the key differences:

• Quarterly Tax Payments: As a contractor, you’ll need to estimate and pay taxes quarterly to the IRS and possibly your state. This replaces the automatic payroll deductions that W-2 employees experience.
• Deductions: You can deduct work-related expenses such as professional memberships, equipment, continuing education, and even a home office if applicable. While most travel and housing costs are covered by Floyd Lee Locums or the contracting facility, other eligible expenses can significantly reduce your taxable income, saving you money.
• Business Structure: Many locum tenens clinicians choose to establish an LLC or S-Corp for liability protection and potential tax benefits. Consulting with a financial advisor or CPA can help determine the best structure for your specific situation.

Need a tax advisor specializing in locums?

Download our free Locums Toolkit for a list of partners.

Is locums stable?

Scheduling flexibility and control are among the greatest lifestyle benefits for locums providers.

A common fear is that there won’t be enough assignments or that you’ll be let go from your contract earlier than planned. But the truth is that most specialties are in high demand around the U.S. and offer year-round opportunities. And if you’re game for a rural location, an under-served community, or a hard-hit area, you’ll always have opportunities at your fingertips. The best part? You can decline any opportunity that doesn’t fit your goals.

Do I have to travel?

Travel remains one of the top reasons locum tenens physicians choose this workstyle. But no, you don’t have to travel to do locum tenens. In fact, many physicians and advanced practice providers choose to do locums as a side gig to earn extra income or expand their skills.

Plenty of opportunities exist in most major cities and many rural areas across the U.S. But travel does make it easier to land a locums role, and why not travel on someone else’s dime?

With Floyd Lee Locums, we work to make your travel as smooth and stress-free as possible. Here are some of the benefits to working with Floyd Lee Locums when you travel for locum tenens assignments:

• Call us for anything 24/7/365 – roadside assistance, delayed flights, last-minute hotel bookings, lost credit cards, or needing emergency cash. Whatever it is, we’ll go to great lengths to ensure you are taken care of.
• Our dedicated in-house travel specialist team books all your flights, rental cars, and lodging for you.
• We’ll find family-friendly or pet-friendly accommodations for you should you choose to travel with your loved ones.
• We work to ensure everything is turnkey when you arrive at your assignment so you can focus on what you do best – taking care of others.

What about licensing and credentialing?

Before a provider can start an assignment, he or she must be licensed to work in that state. We usually obtain state licenses for MDs and DOs through the Interstate Medical Licensure Compact (IMLC, or Compact). The IMLC provides faster licensing times compared to licensing directly through the State. The IMLC is an agreement between more than 40 states, the District of Columbia, and the Territory of Guam where physicians are licensed by 43 different Medical and Osteopathic Boards. Under this agreement, licensed physicians can qualify to practice medicine across state lines within the Compact if they meet the agreed-upon eligibility requirements.

Onboarding, licensing, and credentialing requires skill and patience. At Floyd Lee Locums, we assist clinicians with getting through the complex and ever-changing requirements needed to complete these processes. Incomplete or out-of-date information can prevent timely applications for locum tenens jobs or even delay your start date.

Our credentialing team is here to build your file with the documents required by many accreditation agencies, verify your professional education, training, job history, and licenses or certifications, and have forms pre-filled and ready-to-go. As a concierge locum tenens staffing firm, we are committed to maximizing opportunities that meet your goals.

• We take everything off your plate that we can: we’ll help you track down and gather references, documents, and certifications and help you fill out applications. Our credentialing department provides hands-on support when you need a new or renewed license, including DEAs and other required state licenses.
• Shortened onboarding: Our in-house dedicated credentialing team acts as a liaison between providers, hospitals, and third-party offices. We have relationships with facilities in all 50 states and U.S. territories and know their credentialing requirements. This dramatically shortens the time it takes you to onboard with a facility.
• We are your staff: Our credentialing team will stay in contact with the facility to ensure everything is complete and accurate. No need to stay on hold, find a missing piece of paperwork, or verify that everything is ready for your start date. And once your assignment begins, our team assists with keeping your file up-to-date and active. Our regular reviews of licenses, DEAs, CSRs, CDS, privileges, and more keeps you ahead of any renewals.

When is it best to do locums in my career?

Locum tenens isn’t just a gig. It can also be a strategic career option that offers a different lifestyle for you. It’s a wonderful opportunity to explore clinical settings, add to your CV, or travel at someone else’s expense. Locums can be an ideal choice at any stage of your career whether you’re just out of residency, in the middle of your career, or close to retirement.

Locum tenens after residency can be an ideal choice if you want to:

• Explore different practice settings before settling down
• Maximize income early in your career, particularly for paying down student debt
• Gain experience in diverse settings like rural practices or high-need communities
• Have control over your schedule

Mid-career is often when physicians and clinicians feel the weight of student debt, burnout, and long hours. Many physicians and APPs at this stage don’t want to leave medicine but are looking for a way to practice and live differently.

Locum tenens in mid-career can be ideal for:

• Renewing your work life balance
• Reigniting professional fulfillment
• Career flexibility for family life
• Paying off student debt or saving for retirement

And as retirement approaches, many physicians and APPs are ready to slow down but not leave medicine entirely.

Locum tenens can be ideal in late career for:

• Mentoring younger generations of healthcare providers
• Gradual stepping away toward retirement
• Continued income

One of the greatest benefits of locum tenens is that it can adapt and evolve with you and your career. What begins as a way to gain experience can later become a way to control work/life balance or as a thoughtful transition into retirement.

Will I have support with locum tenens?

Floyd Lee Locums’ concierge support means we understand that every clinician’s life and career path is unique, and we implement this ideal into everything we do. We don’t cut corners or assume we know someone’s motivations. We check in, we follow up, and we follow through.

Whether you’re working locums as a career, transitioning to retirement, or paying off debt, our concierge approach adapts to your life and goals and helps you implement them.

We serve as your front desk support and your back pocket resource. We are your concierge, your confidante, and your guide.

At Floyd Lee Locums, we go above and beyond just staffing. Our concierge approach means:

• Celebrations of milestones and achievements including birthdays, professional wins, and industry holidays.
• A Group Health Benefits Plan available to you and your family with year-round coverage (even between assignments) that provides health insurance, life insurance, and disability insurance.
• A personal concierge service that can help you make dinner reservations, find the right doggie daycare on assignment, send a gift to a loved one, and more.
• Transparent and timely payroll so clinicians can focus on care, not paperwork.
• Real human connection and advocacy, with recruiters and support teams who know you by name.
• 24-hour emergency travel support with a real human.
• A network of professionals who specialize in locum tenens including financial planners, tax advisors, and insurance agents. Our network is your network.
• In-house travel specialists, licensing professionals, and credentialing team. No outside or contracted personnel. We all work at Floyd Lee Locums.
• Regular updates and check-ins to see how you’re doing and if we can assist you in any way with your professional or personal life.
• Personal and logistical support during life events, whether celebratory or challenging.

Is locums right for me? (FAQ section)

Locum tenens is ideal for those who prioritize flexibility, control over their schedule, and who enjoy different settings.

Signs locum tenens is right for you:

• You are not afraid of new situations or being the “new” person frequently.
• You learn new systems, software, and processes quickly.
• You do not need consistency to function at your best.
• You can qualify easily for new licenses and credentials.
• You are willing to experience different settings and ways of doing things.
• You like exploring.
• You want to “test drive” a specialty, facility, or city before committing.
• You enjoy travel and exploring new cultures.
• You want to pay down debt or have a high income.
• You’ve thought about being “your own boss”.
• You miss spending time with patients or need more fulfillment.

Potential challenges you may want to consider:

• Adapting frequently to new ways of doing things.
• Often walking into understaffed environments.
• Learning new systems and processes (EMRs).
• Managing your own benefits (insurance, taxes, retirement, etc.).
• Saving money for times when you aren’t working.

The locums lifestyle is a unique one. It’s important to be honest with yourself about what matters the most to you when considering any career move. Talk to colleagues, try out an assignment during your vacation time, or give us a call to ask more questions.

We’re here for you.