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Reducing Hospital Costs With Locum Tenens Physicians

As recruiting costs and physician wages increase, many healthcare organizations are faced with the challenge of balancing cost savings and quality care.

 

With locum tenens, patient care doesn’t have to be compromised when reducing the annual cost spent on hiring physicians. Partnering with a locum tenens staffing agency can be a viable way to help reduce overall staffing costs while also increasing revenue.

 

Costs Associated With Hiring Physicians

 

Effectively onboarding a physician is not only challenging, it’s a significant investment for a hospital.

 

RECRUITING COSTS
Up to $88,000 per physician
Recruiting physicians is a costly, labor-intensive process. By contracting and staffing physicians by using a staffing company, healthcare facilities can significantly cut costs associated with recruiting, including interviewing, sign-on incentives, and relocation bonuses.

 

 

 

MALPRACTICE INSURANCE
Up to $100,000 per physician annually

The cost of malpractice insurance for physicians can reach up to $100,000 annually. Locums staffing agencies cover this cost for the locum tenens providers that they send to your facility.

 

 

 

 

PHYSICIAN COMPENSATION
Up to $400,000 per physician annually
Among annual salary, insurance, and other benefits, hospitals can expect to spend up to $400,000 per year on each full-time physician. Healthcare facilities do not supply a benefits package or annual salary to locum tenens providers, thereby reducing the annual physician compensation costs for hospitals.

 

 

 

LOST REVENUE
More than $1.5 million per physician annually
The hard costs of hiring a full-time physician are significant, but the expense of a physician vacancy at a facility is even more costly. Locum tenens providers can fill staffing needs in the long or short-term, ensuring that your healthcare organization has the resources necessary to provide all of its patients with quality care.




Reducing Costs With Locum Tenens

 

Hiring locum tenens providers to fill staffing needs allows healthcare organizations to focus on what’s important: providing quality patient care.

 

By eliminating recruiting costs, malpractice insurance, and physician compensation, and by minimizing lost revenue, locum tenens providers can help healthcare groups reduce overall costs while improving their bottom lines.

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