Locums as a Side Gig: What You Need to Know

What is locum tenens?

Locum tenens is Latin for “to hold the place of,” and in healthcare, it refers to physicians and advanced practice providers who take temporary assignments at hospitals, clinics, and other medical facilities. These roles can last anywhere from a few days to more than a year and may be part-time or full-time.

A 2022 survey by AMN Healthcare found that nearly 90% of healthcare facilities in the U.S. use locum tenens to help cover staffing gaps caused by vacancies. In some cases, facilities also use locum tenens to evaluate a clinician before offering a permanent position.

While locum tenens and per diem work both fill temporary needs, they are not the same. Per diem roles are typically arranged directly between the clinician and the facility, while locum tenens assignments are usually managed through a staffing agency with defined start and end dates. Locum tenens clinicians also often receive support such as malpractice coverage, housing, and travel stipends.

The Benefits of Locums as a Side Gig

One of the biggest benefits of locum tenens work is the opportunity to earn extra income by using locum tenens as a side gig. Facilities often pay competitive rates to attract qualified clinicians quickly, especially in high-demand specialties, rural areas, or urgent staffing situations. In many cases, locums assignments also include housing, travel, and other expenses, which helps stretch every dollar you earn. That added income can make a meaningful difference, whether you’re paying down student loans, saving for a house, building retirement savings, or simply living the lifestyle you crave.

Locums can also give you the chance to explore a new specialty or facility without making a long-term commitment. For some clinicians, that means trying a different clinical environment, learning new workflows, or gaining exposure to a patient population they may not see in their current role. This can significantly improve a CV. It can also be a good way to determine whether a setting, specialty, or location is the right fit before making a bigger career move.

Another meaningful benefit is the opportunity to make a difference in underserved communities. Some facilities that rely on locums are in rural or hard-to-fill areas where access to care is limited. By stepping into those roles, clinicians can help patients receive timely treatment and support facilities that are working hard to serve their communities. That kind of work can be especially rewarding for clinicians who want their side gig to have real impact.

Locums can also help you build a stronger professional network. Every assignment gives you a chance to meet new physicians, administrators, and staff. Those connections can lead to future opportunities and professional referrals. Over time, that network can become one of the most valuable parts of your locums experience.

How Does Locum Tenens Work?

There are a few key differences between being a locum tenens clinician and being a W-2 employee. For locum tenens, you’ll work as a 1099 contractor. Locum tenens physicians and advanced practice providers work independently from the healthcare facility where they’re assigned, often as self-employed professionals or through their own practice. Part-time contracts are common, and many include language that addresses compensation for hours worked beyond the agreed schedule, even for part-time roles. Locum tenens assignments are paid hourly and are usually paid out by direct deposit either weekly or bi-weekly.

Most locums assignments begin with a recruiter or staffing agency matching the clinician to an open need and helping coordinate the details. That often includes credentialing, licensing, travel, housing, and contract logistics, which can make the process feel more streamlined than finding locums side gigs on your own. With that concierge support in place, clinicians can spend more time focusing on the assignment or their personal lives and less time managing the details.

Flexibility is another big part of how locums works. Some assignments are short-term and occasional, while others are ongoing or arranged around a clinician’s availability. That flexibility is one of the reasons locums can be such a strong fit for a side gig, especially for clinicians who want extra work without giving up the control they have over their schedules.

Locum tenens clinicians also often have more time to focus on patients and their cases because they are not carrying the same administrative burden as permanent staff. With fewer long-term meetings, internal processes, and facility-specific responsibilities, many locums providers are able to stay more present with their patients. That can support stronger patient satisfaction, fewer medical errors, and higher job satisfaction overall.

Financial Considerations

Locum tenens work can be a smart way for clinicians to earn extra income while maintaining flexibility in their primary career. For many providers, the appeal is simple: the ability to use a side gig to pay down debt, build savings, fund a major purchase, or create a little more financial breathing room. It can also be a helpful way to offset life’s bigger expenses while still keeping control over when and how often you take assignments.

How Much Can You Earn on a Locums Side Gig?

Many specialties earn significantly more on an hourly basis (up to 50% more) when compared to employment due to the urgent nature of most locums assignments, the location of the facility, or the high demand of their specialty. It’s also because traditional benefits like insurance and taxes are not withheld from the paycheck. In addition, locum tenens assignments can be negotiated, often resulting in higher pay than advertised. That’s why having a concierge recruiter at your side who can help you negotiate for higher pay is so important.

Wealth Management and Retirement Planning

Locum tenens offers healthcare providers a unique blend of flexibility and financial advantages. While we’ve already explored the increased pay rates, there are many long-term financial benefits to this workstyle as well.

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.

Health Insurance, Life Insurance, and Disability Insurance

Whether locums is your full-time career or your side gig, through Floyd Lee Locums you have access to a Group Health Benefits Plan that provides coverage for you and your family—even between assignments. This can be especially helpful to those who do not receive healthcare benefits as part of their full-time employment.

Floyd Lee Locums is one of the few (if not the only) locum tenens staffing firms to offer a comprehensive group benefits plan that includes dental and vision coverage. The plan also provides life insurance and disability insurance with options for short-term and long-term care.

The Group Benefits Plan is structured for the realities of locum tenens practice: you can access coverage year-round, when you work locums as a side gig, or if you take extended breaks between assignments.

Take a closer look at the benefits of the Group Health Benefits Plan:

Tracking Expenses

Expense tracking is another vital habit. Work-related costs like licensing fees, continuing education, or professional equipment should be recorded. Using a mobile scanning app can make it easier to store receipts and maintain an organized record for both personal budgeting and tax filing. We include recommendations in our free Locums Toolkit.

Working With a Financial Professional

If you’re using locums as a side gig, it can be helpful to work with a CPA or financial advisor who understands contract work. They can help you think through tax planning, estimate quarterly payments, and keep your financial picture organized as your income changes. That kind of support can be especially valuable if you’re balancing locums with a full-time job and want to make sure the extra income is working for you in the smartest way possible.

Understanding Taxes For a Locums Side Gig

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, including both the employee and employer portions of Social Security and Medicare taxes (commonly referred to as self-employment tax). 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.

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.

In short, locum tenens clinicians pay self-employment tax, submit quarterly estimated payments, and can deduct eligible business expenses. Establishing an LLC or S-Corp may provide additional tax advantages.

Next Steps

If locums as a side gig sounds like the right fit for you, the next step is to download our FREE Locums Toolkit for helpful resources and contact information for locums financial planners, tax professionals, wealth managers, etc.

Before accepting an assignment, it’s also important to check your current employment contract for any non-compete language, moonlighting restrictions, or other limitations that could affect your ability to work locums. Every contract is different, so reviewing the details carefully can help you avoid surprises later. If you’re unsure how a clause might apply to you, it may be worth getting legal guidance before moving forward.

A few other helpful next steps include making a list of your ideal work preferences, thinking through how much extra time you realistically have available, and deciding what you want out of the experience. Whether your goal is extra income, professional growth, or a little more variety in your schedule, clarifying your priorities can make it easier to choose the right opportunity.

You can also connect with one of our Healthcare Consultants to talk through your goals and learn more about available opportunities. A consultant can help you understand the process, answer questions, and identify assignments that may be a good match for your schedule and experience. If you’re considering locums as a side gig, having someone in your corner can make the process feel much more manageable.

A Concierge Approach to Your Success

Financial success in locum tenens starts with solid planning, but having the right kind of professional support can make all the difference. “We’re a concierge locum tenens agency, committed to lifting the burdens off your shoulders so you can focus on what you do best – delivering exceptional care,” says CEO Natasha Lee. “Our mission is to humbly serve those in healthcare who change lives daily. That’s you. And we’re proud to stand with you at any point of your journey, whether you choose us or not.”

At Floyd Lee Locums, we are your partner in your professional and personal success. Both matter, and we’re proud to serve your entire life.

Here’s how we make locum tenens as a side gig easier for you:

• 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 as a Side Gig Right For Me?

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.
• You learn new systems, software, and processes with ease..
• You can qualify easily for new licenses and credentials.
• You are willing to experience different settings and ways of doing things.
• You want to “test drive” a specialty, facility, or city before committing.
• You want to pay down debt or have a high income.
• You’ve thought about being “your own boss” and would like to try out owning a company.
• You miss spending time with patients or need more fulfillment.

Potential challenges you may want to consider:

• Adapting to new ways of doing things.
• Walking into understaffed environments.
• Learning new systems and processes (EMRs).
• Managing your own taxes.

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, even a side gig. Talk to colleagues, do your research, or give us a call to ask more questions.

We’re here for you.