For better or worse, the world of locum tenens staffing is changing more rapidly than ever before.
Banner Health, regarded and recognized as a top health system in the country for the clinical quality consistently provided to patients in its hospitals, is headquartered in Phoenix, Arizona. The non-profit health system operates 30 hospitals, including three academic medical centers and other related health entities and services in six states. With over 52,000 employees and 5,000 providers, Banner Health is Arizona's largest private health system and the third largest employer in the Northern Colorado front-range area.
The world of locum tenens is changing at a pace that most, if not all of us, probably have not seen in our careers. We are seeing many statements or surveys that show that upwards of 40-50%+ of all physicians and providers are doing or open to locums/moonlighting work, 30-40%+ are moving to a locums lifestyle for a work life balance or to supplement their income, and that certain specialties are seeing spikes in utilization so are creating crisis level coverage issues driving department/unit closures or diversion of services.
In the past decades, the healthcare industry as a whole has seen unprecedented labor shortages, which were greatly exacerbated by the coronavirus pandemic. With record rates of burnout, the Great Resignation, and other factors seemingly outside of the industry's control, healthcare facilities have turned toward locum tenens to fill the gaps.
Are you paying market rates for Locums? Or are you overpaying? If you are negotiating rates with agencies individually and without the benefit of a competitive process you are most likely overpaying. The reality is that most health systems do not do a great job ensuring that they are competitive in the marketplace and not being overcharged for fees and conversions.
Determining market equilibrium pricing can be complex, but it doesn't have to be. Healthcare Workforce Logistics (HWL) is uniquely positioned to act as an honest broker for our clients. Unlike an agency-managed MSP program, we offer the ability to have one set rate with all vendors, tiered rate structures, or individual rates with each agency. We also monitor and assess agencies’ performance on an on-going basis and continuously monitor market pricing to achieve cost reductions on locums, nursing, and allied health professionals.
Locum tenens healthcare providers can be lifesavers for organizations who need additional providers, even though they come with a higher price tag than fully employed providers. Given an aging population and an aging physician workforce, the need for Locums is expected to continue to climb.
America's healthcare system has its foot stuck on a train track and the evening express is hurtling down the track.
Originally published May 2018. Updated on November 17, 2020.
The U.S. health sector has seen tremendous growth over the last century. Demand for medical providers is outpacing the supply so organizations are turning to provider staffing firms to fill the gaps. In fact, the healthcare staffing market is expected to hit $43.5 billion by 2025.
More and more healthcare provider organizations are turning to locum, or locum tenens to keep up with the increasing demands.