Locum Tenens Corner: The Demand During the Recession

The Bureau of Labor Statistics September 4, 2009 report states "with the exception of hospitals, the August employment increase in all of the industries within healthcare exceeded the average monthly gain experienced during the prior 6 month period. Employment in hospitals was little changed in August. Job growth in the industry slowed in early 2009 and has been flat since May."

The nightly news states the recession has hit healthcare far less than other industries but it is obvious the industry has not escaped the effects of the recession. The downturn has affected hospitals and medical groups in a couple of crucial areas:

The lack of funding has caused many to put facility and staffing expansion plans on hold.
Physicians are reluctant to relocate due to the downturn in real estate and their inability to sell their homes.

During this period of flux and physician shortage, it's understandable that the demand for locum tenens services remains strong. Locum tenens allow hospitals and groups to meet their physician staffing needs when there are staffing problems due to increased patient loads, medical leaves, sabbaticals and physician burn out.

Although the request for certain specialties will always fluctuate, the locum tenens demand for Family Practice, Internal Medicine, and Pediatrics remains consistent. Emergency Medicine is also in high demand. With more and more physicians not wanting to take call, hospitals are considering EM locum tenens physicians to take up the slack. Radiology, Anesthesiology, and Psychiatry have always been high on the list for locum tenens coverage. As the millions of baby boomers reach their 60s, it is anticipated there will be an even greater demand for locum tenens Gastroenterologists, Cardiologists, Pulmonologists and Urologists.

The recession has made conducting a physician manpower plan more difficult than ever. It is not an easy task to determine long term physician staffing goals when the healthcare industry is changing daily.

Consider these advantages in using locum tenens as your staffing solution during this recession:

It is a cost-effective way to prevent revenue loss and provide continual treatment of patients.
When contracting with a locum firm, you are not responsible for paying the physician or withholding state and federal income taxes, nor are you responsible for providing the malpractice insurance and other benefits such as vacation, 401K, pension, and medical insurance.
Many locum tenens physicians prefer to work in or near their home town, which often means they are already familiar with the referring physicians, formularies, insurance payers, and hospitals in the community.
Also, having a local physician eliminates the added expenses of roundtrip travel, lodging and rental car. Locum firms keep this cost factor in mind when working to fill open positions and will call on their local pool of physicians prior to contacting those out of state.

If you would like more information, please contact us.

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