Understanding Compensation Packages for Locum Tenens
When it comes to working locum tenens, there is a bit of a learning curve. After all, you went to medical school/graduate school to learn how to take care of patients – so chances are you don’t have an MBA.
That’s why, when you’re signing up for your first (or second, or third) locum assignment, you want to make sure you understand your compensation package.
You probably know that on average, those who work a full-time locums schedule make about $32 an hour more than healthcare providers in permanent roles. But how does it all work? Do you have to pay your own taxes? What about insurance? Or medical malpractice?
Locums providers work W-9/1099 employees of a staffing agency. Because you don’t receive a traditional W-2 salary with taxes automatically withheld from each paycheck, locum providers are responsible for their own taxes and benefits. (Your locum agency will typically cover travel costs and reimbursement for state licenses.)
Your pay will typically be calculated using an hourly rate. Some contracts will include a sign-on bonus or a completion bonus, while other contracts will include a higher rate for nights/weekends. Of course, your pay will depend on a variety of variables, such as:
- Skills and Experience – If you have all the relevant skills, training and experience, you can negotiate a higher pay rate.
- Location – If you’re looking at a locum tenens placement in an area with severe shortages or a higher cost of living, this could affect your pay.
- Intense Workload – If you’re signing on to an assignment where you’ll be expected to see a higher-than-usual patient volume, you can often negotiate a higher pay rate.
Though you could do this on your own, a reputable agency can help you negotiate the best hourly rate, handle the majority of communication between you and the healthcare facility, take care of malpractice coverage, arrange your travel and housing and take care of your credentialing.
Before signing on the dotted line, make sure you know what’s expected of you while on assignment – and what type of support staff you’ll have available for administrative duties or hands-on patient care. (This will be your scope of practice.) Also, look over your contract for any terminology regarding termination and cancellation. Keep an eye out for auto-renew clauses so you won’t be locked into any assignment for longer than expected. Be aware that there could be penalties if you (or your facility) decide to cancel the locum tenens assignment before its scheduled date of completion.
(There are some terms in locums contracts that are non-negotiable, but a reputable agency will take the time to explain those terms and make sure you understand what you’re signing.)
Remember, staffing agencies have seen it all, and it’s in their best interest to make sure you – the healthcare professional – are happy, while also making sure the healthcare facility is getting exactly what it needs.
Negotiation is an essential part of the locum tenens experience. Take your time. Ask lots of questions and know your worth. We are more than happy to help! SUMO Medical Staffing has a proven track record in helping medical professionals find jobs that best fit their specific needs. Our staffing representatives are ready to discuss your career goals and future. Request a consultation with a locum tenens staffing specialist today.