Locum Tenens Contracts

A locum tenens contract can be an attractive option for physicians seeking flexibility, variety, and opportunities to travel while continuing to practice medicine. However, the appeal of locum tenens work can sometimes overshadow important details buried within the employment contract itself. Before physicians sign any employment contract, including locum tenens contracts, it is advisable to have the contract reviewed by a physician employment contract attorney. Here is what physicians considering signing a locum tenens contract should consider, and what might cause them to walk away. 

What Is a Locum Tenens Contract?

Locum tenens is a Latin phrase meaning to temporarily take the place of another. In medicine, it refers to physicians who temporarily fill staffing gaps in hospitals, clinics, or healthcare systems. These doctors step in when a provider is on leave, when demand increases, or when a facility has difficulty hiring permanent staff. Assignments can last from a few days to several months.

Why Choose a Locum Tenens Contract?

Physicians might choose to serve as a locum tenens for a variety of reasons. Here are some of the main benefits of a locum tenens contract?

Flexible scheduling: Locum tenens contracts give physicians control over when and where they work, improving work-life balance and reducing burnout. Physicians can accept assignments that fit their personal goals and availability.

Competitive pay and benefits: Many locum tenens positions offer high hourly compensation, travel reimbursement, housing assistance, malpractice insurance, and licensing support, making these contracts financially attractive.

Diverse clinical experience: Physicians gain exposure to different healthcare systems, patient populations, and medical practices. Physicians can try different specialties, facilities, or geographic locations before committing to a permanent role while also expanding their professional network.

Travel opportunities: Locum tenens work allows physicians to explore new cities and regions while continuing their careers. 

Reduced long-term obligations: Unlike permanent positions, locum tenens contracts often involve fewer administrative responsibilities and committee duties, allowing physicians to focus more on patient care.

Areas of Concern in Locum Tenens Contracts

It is advisable to have any physician employment contract reviewed by a physician employment contract attorney. These are some of the areas of locum tenens contracts that should be given the most scrutiny:

Compensation and Expenses

Compensation is often the first aspect physicians consider when evaluating a locum tenens opportunity, but the advertised rate does not always reflect the assignment’s true financial value. A thorough review of the contract should include not only pay rates but also reimbursement policies, travel arrangements, and other expenses that may affect overall earnings. Understanding these details up front can help avoid unexpected costs and ensure the assignment is financially worthwhile.

• Look beyond the advertised pay rate. A competitive hourly or daily rate may not accurately reflect your total compensation if the contract includes unpaid administrative duties, mandatory orientation sessions, charting responsibilities, or call coverage requirements. Evaluate your expected earnings based on all time commitments associated with the assignment.
• Clarify how compensation is calculated. Confirm whether payment is based on scheduled hours, patient volume, RVUs, completed encounters, or another metric. Request historical workload information when possible to better estimate your actual earnings and avoid relying solely on recruiter projections.
• Review guarantees and payment terms. The contract should clearly state whether there are guaranteed minimum hours, overtime provisions, cancellation fees, and payment schedules. Independent contractors should also verify invoicing requirements and expected timelines for receiving payment.
• Examine reimbursement policies carefully. Licensing fees, credentialing costs, travel expenses, lodging, meals, and other assignment-related costs should be clearly addressed in the agreement. Understanding what is covered—and what is not—can significantly affect the assignment’s overall value.
• Assess travel and housing arrangements. Confirm who is responsible for booking flights, accommodations, rental vehicles, parking, baggage fees, and mileage reimbursement. Additionally, evaluate housing quality, proximity to the facility, and whether accommodations are private or shared.
• Factor travel burdens into the assignment’s value. Assignments in rural or remote locations may require lengthy travel, multiple connections, or extended commuting times. Because travel demands can affect both quality of life and earning potential, physicians should consider negotiating additional compensation when significant travel is required.
• Understand how expenses are reimbursed. Determine whether expenses are paid directly by the agency or reimbursed after submission. Delayed reimbursements can create cash-flow challenges, particularly during long-term assignments, making reimbursement timelines an important contract consideration.

Non-Compete Clauses

Non-compete clauses may limit your ability to work directly for a facility, accept a permanent position, or provide services within a certain geographic area after the assignment ends. Because restrictions vary widely between contracts and states, physicians should carefully review the language and understand how it could affect their career flexibility.

• Review any restrictive covenant language carefully.
• Determine whether the contract prohibits direct employment with the facility after the assignment.
• Understand the duration and geographic scope of any restrictions.
• Identify whether buyout provisions or placement fees apply if you transition to a permanent role.
• Ensure the restrictions are reasonable and do not unnecessarily limit future career opportunities.

Clinical Responsibilities and Workload Expectations

A successful locum tenens assignment depends on having a clear understanding of the clinical responsibilities and workload expectations before arriving at the facility. One of the most common sources of dissatisfaction among locum physicians is discovering that the actual workload differs significantly from what was initially described. A detailed contract can help set realistic expectations, ensure the assignment aligns with your experience and comfort level, and reduce the likelihood of disputes or unexpected responsibilities.

• Confirm expected patient volume, including average daily census, clinic visits, admissions, or consults.
• Review call requirements, including frequency, response expectations, and whether call responsibilities are compensated separately.
• Understand shift lengths and scheduling expectations, including nights, weekends, holidays, and overtime requirements.
• Clarify procedural responsibilities to ensure the assignment matches your training, experience, and credentialing.
• Identify supervision and leadership duties, such as overseeing advanced practice providers, residents, or other clinical staff.
• Review documentation requirements.

Consult with An Experienced Physician Employment Contract Review Attorney 

Consult with an experienced physician employment contract review attorney regarding locum tenens arrangements before signing any agreement. Having professional legal guidance ensures your interests are protected and that you fully understand your rights and obligations. Contact us today.