Locum Tenens Provides a Strategic, Cost-effective Solution As Physician Shortage Intensifies

Multiple Factors Contribute to Difficulty in Recruitinggrowth. * The majority of physicians are choosing to
Quality Physicians, Industry Founder Details Howpractice in metro areas, 88 percent from 1991 to 2001,
Locum Tenens Coverage Can Helpcausing a maldistribution and leaving rural areas
Salt Lake City, UtahMay 26, 2006 In urban and ruralunderserved. * The increasing cost of malpractice
communities across the country, the realities of aninsurance is causing doctors to leave "in crisis" states. *
intensifying physician shortage are significantlyA large number of "Baby Boomer" doctors are
impacting access to quality patient care. Healthcarereaching retirement age at the same time that their
facilities of all sizes compete for the same limitedpatients are seeking out more medical care than any
supply of qualified physicians, putting a great deal ofprevious generation. * Women now make up more
pressure on recruitment departments. Therus C. Kolff,than half of all medical school applicants and are more
MD, MPH, is founder of the locum tenens, orlikely to expect flexible work options and fewer
temporary physician, industry and chairman of theworking hours. * Doctors of both genders insist upon a
board for VISTA Staffing Solutions, discussed thesebetter work-life balance than their predecessors did. *
challenges recently with hospital CEOs as a featuredInternational medical graduates, who constitute 30+
speaker at Community Health Systems' 2006percent of the total number of doctors in the United
Physician Recruiting Seminar, May 25 and 26, in CoolStates, are under increasing immigration and temporary
Springs, TN. He reported that locum tenens staffingworker constraints, which inhibits their ability to augment
firms are poised to fill the gap and offer a viable andthe physician workforce.
cost-effective solution to communities that areSince Kolff founded the locum tenens industry in 1979,
scrambling to meet the growing demand forthe number of physicians who practice as locum
physicians.tenens at some point in their careers has increased
For many years, Kolff says, organizations in otherfrom 4 to 20 percent. Most consider temporary
industries have utilized a contingent workforce as aassignments at three distinct stages: 1) as young
sound business strategy, ranging from 9 percent in thephysicians just out of residency, 2) at mid-career as a
manufacturing industry to 3 percent in service andresult of practice or career changes, and 3) as they
retail companies. "Today, smart healthcareapproach retirement.
organizations are likewise seeing the tremendous valueAs more physicians choose a locum tenens practice,
of a contingent, or locum tenens, workforce." Hethe overall "reputation" of the industry has also
explains, "Physicians are not only primary healthcareimproved. Healthcare administrators used to worry
providers, they are also revenue generators. Whenabout a temporary physician's qualifications when, in
healthcare facilities are short-staffed, fewer patientsfact, the extensive and continual credentials review
are seen and less income is generated. Temporarythat locum tenens undergo makes them among the
physicians help hospitals and physician practice groupsmost investigated doctors anywhere. "We call it life in
meet increasing demands for care, maintain patientthe fishbowl," Kolff says. "To become a locum tenens
satisfaction and keep referral systems intact, and theyphysician, you have to be willing to have your
ensure a continued revenue stream."credentials checked and rechecked by the staffing
For example, in 2004, a major national healthcarefirm - and the healthcare facility, every time you go on
organization conducted a cost analysis of 330 days ofassignment. Poorly qualified doctors don't tend to
locum tenens coverage. Temporary physicianswelcome that level of scrutiny."
generated $1,745,996 in billable revenue at the cost ofToday, there are more than 28,000 physicians in the
$522,855 for their services, which added $523,799 toUnited States who are practicing as locum tenens. In
the hospital's income. Going without physician coverageincreasing numbers, highly-qualified locum tenens are
during this same period would have resulted in zerohelping to meet the growing need for qualified
billings.physicians by serving as a valuable resource during
Acknowledging that the physician shortage is "onlythe often-lengthy physician recruitment process, for
going to get worse," Kolff cites the followingrural communities that have difficulty attracting
contributing factors: * The number of medical schoolpermanent physicians, and as medical staffing needs
graduates is not keeping up with U.S. populationfluctuate.