Practicing locum tenens means becoming an independent contractor
FAQs:
Which agency is right for me?
What does LocumTenens.com offer?
What are the JCAHO and NCQA Requirements to work locum tenens?
What is involved with becoming an independent contractor?
Am I ready to try locum tenens work?
Thinking about trying locum tenens work? If you want a flexible work schedule
and you handle change well, you're probably a good fit for this style of
practice.
But before you pack your bags, take some time for introspection. What aspects of
your personal and professional life are most important to you? For example,
would you rather develop a few lasting friendships or meet a large circle of
acquaintances? Do you prefer structure and consistency or continually charting
new paths?
What are your reasons for considering locum tenens practice? Maybe you yearn to
"see the world" before you put down roots. Or maybe you've been doing the same
thing in the same place for a long time and you're ready for a change of pace.
Perhaps you're close to retirement and ready to cut back your schedule, but you
need to maintain some cash flow.
Evaluating Locum Tenens Agencies
The locum tenens industry is small, producing total revenue of approximately
$2.5 billion in 2004. There are about a dozen large, well-established locum
tenens companies. A large number of small, regional or single-specialty
agencies make up the rest of the industry.
There are more than 100 U.S. based companies providing some temporary physician
services, ranging in size from one or two home-based employees, to the largest
firm with more than 400 employees. With approximately 100 employees and more
than a decade in business, LocumTenens.com is one of the larger industry
players.
Most established locum tenens companies maintain high standards and do a good
job for the healthcare industry. Many of the larger, longer-standing agencies
belong to the National Association of Locum Tenens Organizations (NALTO). NALTO
members agree to follow certain industry standards and practices, and to work
constructively with each other to resolve disputes when they arise.
Here are some questions to guide you in deciding which locum tenens agencies to
work for.
- How large is the agency and how long has it been in business? Is it financially
stable?
- What locations and types of assignments are available?
- What's the contract length? (Assignments through LocumTenens.com run from a few
days to two years or more. However, the average is about three weeks.)
- Why is the facility hiring a locum tenens physician? Can the agency shed any
light of the situation you'll be entering?
- Are hours guaranteed? Is there mandatory call? What's the policy on overtime?
- Will malpractice insurance be covered?
- Is the healthcare facility open to contract extensions or repeat assignments?
- Is the facility looking for someone to fill the physician job permanently? What
happens if things go so well for both sides that we want to convert the
assignment to a permanent hire?
Practicing Independently Through LocumTenens.com
Major recruiting firms like LocumTenens.com take care of most business aspects
of practicing medicine so you can focus on patients. These include:
- Negotiating contracts with hospitals or medical groups (on your behalf, but as
an independent contractor)
- Purchasing medical malpractice insurance
- Getting licensed in a new state
- Getting credentialed at the assigned medical facility
- Arranging transportation to/from the assignment
- Securing housing during the assignment
- Getting reimbursed by clients for professional services
- Direct-depositing physician paychecks twice per month
We follow JCAHO (Joint Commission on Accreditation of Healthcare Organizations)
and NCQA (National Commission on Quality Assurance) standards in verifying
physicians' education and training, work experience, licensing and
credentialing. LocumTenens.com will place only the doctors who meet these
minimum standards:
- Good standing with American Medical Association and in the National Practioner
Data Bank
- Question-and-Answer page of our application with Attestation and Release signed
- Four reference names/addresses and at least two good in-house references
- Copy of DEA certificate
- Copy of state license and state controlled substance permit (if applicable) for
the assignment location
Becoming an Independent Contractor
Even if you work through a locum tenens agency like LocumTenens.com, you'll be
working as an independent contractor. This means the agency won't be
withholding payroll taxes (including Social Security and Medicare taxes,
unemployment, worker's compensation or employee benefits).
You'll need to pay estimated income taxes to the Internal Revenue Service (and
to your state taxing agency, if applicable) quarterly. You'll also need to
purchase health, disability and life insurance (plus any other benefits needed)
on your own. Also consider that independent contractors only earn income when
they're working. You'll be on your own for vacation, sick and personal days as
well.
To assist you in this process, LocumTenens.com coordinates with Premier
Financial Group to offer health and life insurance for self-employed physicians
and their families. Simply complete an online application for life or health
insurance and get quotes from a selection of reputable carriers. (Click
here for more information.)
The good news is that locum tenens physicians typically get larger paychecks
than those their peers receive from full-time employers. There's no
withholding, and in certain high-demand specialties like anesthesiology and
radiology, healthcare facilities pay a premium for supplemental physicians.
Also, as an independent contractor you can take many tax deductions for
business-related expenses.
Of course, the reason an increasing number of highly qualified physicians are
working locum tenens these days is FREEDOM. Work as much or as little as you
want. Pick your location. Negotiate your terms. Get back to focusing on patient
care. Let an agency like LocumTenens.com make it easy for you!
Am I Ready to Try Locum Tenens? Some Questions to Consider:
- Do I know what practice setting would work best for me? Or would I like to
experience different practice settings before landing somewhere permanently?
- Do I adjust quickly to new people and environments?
- Do I currently live in a place where I'd like to set up practice or retire?
- Which do I enjoy more-building long-term relationships with patients I see
regularly or seeing a perpetual variety of people and cases?
- Do I meet the clinical requirements of typical locum tenens clients? (Many
hospitals today insist that their physicians be board-certified.)
- Is my medical competency above average? (Locum tenens physicians typically
undergo more rigorous scrutiny more often than the average physician does.)
- Do I have a ties (e.g., family) to a particular community to consider?
- Am I willing to forego receiving a steady paycheck with taxes and benefits
deducted each pay period for the freedom to work independently?
- Do I fully understand what it means to be an independent contractor? Am I
willing to take responsibility for filing a 1099, paying payroll taxes
quarterly and buying my own health insurance?
- Is relief from administrative hassles like buying malpractice insurance and
securing payment from patients or third-party providers worth packing up and
moving to different assignments for days or weeks at a time?
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