Locum Tenens Uncovered (Part 2)

In this second episode of a two-episode interview, host David Mandell continues his conversation with Cory Kleinschmidt, an industry veteran in the locum tenens space.

The episode kicks off with a recap of Part 1 and a reintroduction to Cory’s extensive background in the industry, including his work with Jackson Healthcare and his current role at Locumpedia. The focus then shifts to actionable steps for physicians considering locum—starting with educating themselves through resources like Locumpedia’s No BS Guide and connecting with other providers who’ve already taken the plunge.

Cory outlines the importance of understanding the business side of locums, emphasizing that physicians are essentially independent contractors. This means getting smart about taxes, possibly forming an LLC, and making strategic choices about which agencies to partner with. He explains how working with staffing firms can simplify everything from job placement to credentialing and malpractice coverage, while also highlighting the variability in agency models—some being high-touch and others more transactional.

Licensing and credentialing are also critical topics covered in this episode. Cory discusses the value of multi-state licensing and the Interstate Medical Licensure Compact (IMLC), as well as how staffing firms often assist in navigating these hurdles. The conversation wraps up with a look at contracts, pay structures, and what to expect in terms of housing, travel reimbursement, and malpractice coverage. David and Cory underscore the importance of doing your homework to ensure a successful and rewarding locum tenens experience.

TAKEAWAYS:

Takeaway 1: Thorough preparation and research are crucial for physicians considering locum tenens work.

Physicians interested in locum tenens should start by visiting resources like Locumpedia to gather comprehensive information. “Go to Locumpedia. That’s where I was going to start, of course,” Cory Kleinschmidt advises. He emphasizes the importance of doing due diligence: “Doing so upfront, like so many things in life, coming up with a plan leads to more success later on.” The No BS Guide, available on Locumpedia, provides a detailed handbook for everything a physician needs to know about entering locum tenens. Additionally, Cory recommends absorbing as much information as possible about the medical practice, business considerations, and how it aligns with personal life goals: “You want to get out there and absorb as much information as you can about what this kind of medical practice entails, what the business considerations are.”

Cory also stresses the value of connecting with other physicians who have experience in locum tenens. “Getting firsthand testimonials and experiences from other physicians who have tried locum tenens. Learn about what worked for them, what didn’t work for them, what it’s like to work for a staffing firm,” he said. This personal insight can provide a realistic understanding of the lifestyle and potential challenges, helping physicians make informed decisions.

Takeaway 2: Understanding and navigating the business aspects of locum tenens is essential for success.

Cory highlights the importance of understanding the business side of locum tenens, including tax considerations and forming an LLC. “A lot of docs actually start LLCs,” he explains. “They can get a good start taking advantage of the tax breaks that come with business deductions.” This can be particularly beneficial for physicians who view locum tenens as a side hustle or moonlighting opportunity.

He also discusses the negotiation process with staffing agencies. “There often is negotiation involved,” Cory notes. “They may say, ’70 is too low for me to make this worthwhile. I’ll agree to 75.’ There is some negotiation involved in that.” Understanding average pay rates for specific specialties can empower physicians to negotiate better terms. “The more knowledge they have about the average pay rate for a locum tenens radiologist, they can negotiate better with the staffing firm,” Cory adds.

Takeaway 3: Licensing and credentialing can be complex, but agencies can provide significant assistance.

Licensing in multiple states is a critical step for physicians who want to maximize their locum tenens opportunities. “If you’re licensed in one that, it’s reciprocal often times in another state, so that’s something to look into,” Cory explains. He noted that the Interstate Medical Licensing Compact (IMLC) can simplify the process for doctors, with about 30 states participating.

Credentialing at each facility is another important aspect, and staffing firms play a crucial role in this process. “The staffing firms will handle your credentials,” Cory says. “They will thoroughly vet a provider to make sure that they have a clean malpractice history.” He also mentioned that agencies often cover the costs of travel, lodging, and malpractice insurance, as outlined in the locum tenens agreements. “The staffing firm will cover the cost of a hotel completely for that time period. Or if it’s a longer term assignment, if the doctor requests it, they can also request an Airbnb, depending on what their more comfortable with,” Cory elaborates.

INSIGHTS

1. The No BS Guide on Locumpedia is a comprehensive starting point for understanding locum tenens.
2. Locumpedia’s “Locum CME” news roundup keeps physicians up to date on trends, including how AI is shaping the field.
3. Talking to other physicians with locum experience can offer real-world insight into the pros and cons.
4. Most physicians working locums are classified as independent contractors and should understand how this affects taxes and benefits.
5. Many physicians form LLCs to optimize tax deductions and liability protection.
6. Staffing firms play a central role in matching physicians to opportunities and handling all non-clinical logistics.
7. There are over 200 locum tenens agencies, so it’s important to research and vet potential partners through reviews and referrals.
8. The Interstate Medical Licensure Compact (IMLC) can simplify multi-state licensing for qualified physicians.
9. Staffing firms often provide malpractice insurance, travel and housing—details that should be reviewed in the contract.
10. Contracts typically include compensation terms, responsibilities, reimbursement policies, and clauses like noncompetes and cancellation terms.

LINKS & BIOS:

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