Locum Tenens Uncovered (Part 1)

In this first episode of a two-episode interview, host David Mandell speaks with Cory Kleinschmidt, an industry veteran in the locum tenens space. Cory shares his journey into the field, which began unexpectedly in the late 1990s when he helped develop LocumTenens.com, a job board that played a significant role in the industry’s growth. He later founded Locumpedia, a digital platform dedicated to locum tenens professionals, offering resources, job listings, and insights into the industry.

Cory explains the concept of locum tenens, which allows physicians to work as temporary providers in various healthcare settings, providing them with flexibility, higher earnings, and work-life balance. He highlights how the industry has evolved from a necessary staffing solution to a strategic workforce model, driven by growing physician shortages and changing work preferences.

This first part of a two-episode interview also covers trends in locum tenens, including the increasing interest from younger physicians, the rising demand for specific specialties like neurology, cardiology, and psychiatry, and the impact of AI. Cory emphasizes that locum tenens is becoming an essential part of healthcare staffing, allowing doctors to explore different practice environments while mitigating burnout and financial stress.

TAKEAWAYS:

Takeaway 1: The locum tenens practice offers significant benefits, including higher pay and flexibility, but comes with the responsibility of managing taxes and paperwork.

The locum tenens model, which essentially means temporary physician staffing, has evolved from being a necessary evil to a strategic advantage for healthcare facilities. According to Cory Kleinschmidt, “It’s gig work for doctors and advanced practice providers.” This model allows physicians to work as 1099 independent contractors, providing them with the flexibility to set their own schedules and work in various locations.

“Docs get to set their own schedule, as you mentioned. They’re under no obligation to accept what’s called a locum tenens assignment,” Cory explains. This flexibility is a significant advantage, allowing providers to work in different environments and locations, which can be particularly invigorating for those who are looking to avoid the routine of a traditional practice. David Mandell’s father, a radiologist, exemplified this by traveling to various locations, from Nantucket to Texas, and enjoying the variety and increased income.

However, the 1099 status also means that physicians are responsible for managing their own taxes. “Especially if they do considerable amount of locum tenens work and to replace… A lot of providers now are doing locum’s work full time. They find that, I don’t have the statistic in front of me, but they can make a lot more money working locum tenens than they ever could in a full-time opportunity,” Cory notes. This higher income can be a double-edged sword, as it also means handling quarterly taxes and other financial responsibilities. Despite these challenges, the benefits of higher pay, flexibility, and reduced paperwork often outweigh the drawbacks.

Takeaway 2: The locum tenens industry is rapidly growing, driven by current healthcare trends and the need to mitigate burnout among medical professionals.

The locum tenens industry has grown significantly over the past few decades, becoming the fastest-growing segment of healthcare staffing. Cory Kleinschmidt highlights this growth, stating, “After the dust settled with COVID, largely the industry has been growing rapidly. Now it is the single largest segment of healthcare staffing, or I should say the fastest growing segment of healthcare staffing.”

One of the key drivers of this growth is the physician shortage and the increasing prevalence of burnout among medical providers. “Doc’s burnout is a huge issue. A lot of them are finding that practicing on a locum tenens basis is helping revive their passion, like I said, for medicine, and forestalling the desire to retire early,” Cory observes. This model allows doctors to focus more on patient care and less on the administrative burdens, which can help reduce burnout and extend their careers.

Moreover, the flexibility offered by locum tenens work is particularly appealing to younger physicians and those in mid-career. “In mid-career, the stats show that 63% approximately are working locum tenens during mid-career for the reasons we just mentioned, schedule flexibility, additional income,” Cory notes. The industry’s growth is also evident in the increasing number of physicians opting for locum tenens early in their careers, with 13% of physicians working in locum tenens immediately after completing residency. This trend is expected to continue as the healthcare landscape evolves and the demand for flexible, high-quality medical care grows.

Takeaway 3: Specific specialties are in high demand for locum tenens work, reflecting broader healthcare trends and societal needs.

The demand for locum tenens providers varies by specialty, influenced by broader healthcare trends and societal changes. Cory Kleinschmidt discussed how the aging population is driving demand for certain specialties. “We’ve got an aging populace, and so that’s really driven a lot of demand for specialties that as the baby boomers retire, and we all know when you get into retirement age, your utilization of healthcare services increases,” he explained.

Specialties such as neurology, cardiology, anesthesiology, and radiology are currently in high demand. “That means neurology, cardiology, and anesthesiology, radiology. Family medicine is one of the hot specialties as well, and also psychiatry,” Cory noted. The demand for psychiatry, in particular, reflects an increased focus on mental health, a growing concern in recent years.

Interestingly, the demand for radiologists has seen a resurgence despite concerns about AI displacing human radiologists. “What seems to be emerging is that skilled radiologists utilizing AI are really seen as the future rather than AI just completely displacing radiologists altogether,” Cory observes. This trend highlights the complementary role of AI in enhancing the capabilities of medical professionals rather than replacing them.

INSIGHTS

1. Locum tenens, meaning “to hold the place,” originated in the Catholic Church before transitioning into healthcare staffing.
2. The industry has grown significantly, with more physicians, especially younger ones, choosing it for career flexibility and income potential.
3. Locumpedia is a digital platform that provides a free, centralized resource for physicians and healthcare organizations.
4. The No-BS Guide to Locum Tenens was created to offer straightforward, unbiased insights into locum work. See https://www.locumpedia.com/
5. Locum tenens physicians work as 1099 independent contractors, allowing them to take advantage of tax benefits and business deductions.
6. The demand for locum tenens is increasing due to physician shortages, burnout, and changing work preferences.
7. Specialties such as hospital medicine, neurology, cardiology, psychiatry, anesthesiology, and radiology are currently in high demand.
8. AI is expected to impact radiology, but the combination of AI with skilled radiologists is seen as the future rather than full automation.
9. More doctors are using locum tenens as a way to test different work environments before committing to full-time positions.
10. Locum tenens is becoming an essential part of modern healthcare staffing, allowing hospitals to adapt to patient demand and financial constraints efficiently.

LINKS & BIOS:

• Guest, Cory Kleinschmidt | Bio
• Locumpedia.com
• The No B-S Guide to Locums Tenens
• Host, David B. Mandell | Bio