Can hiring locum tenens help protect your bottom line? Explore the costs of locum tenens versus unfilled physician vacancies here.

How much does it cost healthcare facilities to hire locum tenens providers? Or
 rather, how much does it cost facilities NOT to hire them?


 The financial impacts of physician vacancies are far-reaching. Unfilled
 positions can influence revenue directly. Vacancies also can trickle down to
 deflate a healthcare organization’s
 <a
 href="https://www.crosscountry.com/blog/how-healthcare-org-can-use-locum-tenens-support-to-ease-cost-pre?"
 rel="noopener noreferrer"
 target="_blank"
 >bottom line</a
 >
 in various ways. Here’s a look at the costs of physician vacancies versus the
 costs of hiring locum tenens providers, and why locums makes sound financial
 sense.

<h2>Cost of Physician Vacancies</h2>

 Physician vacancies can be extremely costly. Gaps in care can create an array
 of challenges for healthcare facilities nationwide. Health organizations may
 be left with vacancies when physicians relocate, are promoted, retire, or
 change professions. They may face temporary vacancies when permanent providers
 take vacations, family sick leave, maternity or paternity leave, or other
 leaves of absence. Further, provider shortages and growing demand for
 healthcare across the industry can create openings that facilities struggle to
 fill.

<h3>The impacts of physician vacancies are far-reaching and costly.</h3>

 The trouble with physician vacancies is that they can erode profits in myriad
 ways. First, vacancies cause direct revenue loss since
 facilities can’t bill for services not provided.


 Vacancies also can cause indirect revenue loss due to
 reduced patient satisfaction. Having fewer providers means
 patients may have increased <a
 href="https://www.crosscountry.com/blog/how-advanced-practice-providers-can-improve-wait-times?"
 rel="noopener noreferrer"
 target="_blank"
 >wait times</a
 >
 during their visit. It also means patients may have to
 wait longer to get appointments. Unfortunately, this reduced
 access to care can delay patient diagnosis and treatment.


 Additionally, vacancies can put immense
 pressure on clinical team members and contribute to burnout.
 The American Medical Association puts the
 cost of physician burnout at $500,000 to more than $1 million
 per physician (<a
 href="https://www.ama-assn.org/practice-management/physician-health/how-much-physician-burnout-costing-your-organization"
 rel="noopener noreferrer"
 target="_blank"
 >AMA</a
 >). Burnout can reduce care quality and safety and lead to a higher risk of
 costly medical errors. Research shows doctors who reported
 signs of burnout were twice as likely to have made a medical error in the
 previous three months (<a
 href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6175626/#:~:text=Physician%20burnout%20is%20not%20only,in%20the%20previous%20three%20months."
 rel="noopener noreferrer"
 target="_blank"
 >CMAJ</a
 >).


 Vacancies in supervising physician positions also can
 chip away at a facility’s research, innovation and education
 initiatives, particularly in teaching hospitals and academic institutions.&nbsp;


 Also, vacancies in
 <a
 href="https://www.crosscountry.com/blog/attracting-locums-to-rural-areas?"
 rel="noopener noreferrer"
 target="_blank"
 >rural and critical access hospitals</a
 >
 can exacerbate existing problems in healthcare deserts.
 Patients in remote locations often desperately need services, and vacancies in
 these areas impact entire communities.


 Vacancies can also impede growth. Physician vacancies can
 hinder future development when health systems, hospitals, clinics, private
 practice or other facilities are poised for expansion.


 Ultimately, each of the factors above can impact provider-patient
 interactions, reducing provider satisfaction and
 dragging down patient experience, eroding the facility’s reputation and
 brand, and driving patients and providers to turn elsewhere.

<h2>Locum Tenens as a Cost-Effective Solution</h2>

 Locum tenens providers come at a cost, but one that makes sense strategically.
 Bringing in
 <a
 href="https://www.crosscountry.com/blog/does-my-facility-need-locums?"
 rel="noopener noreferrer"
 target="_blank"
 >locum tenens support</a
 >
 to fill gaps is an effective way for healthcare leaders to protect their
 bottom line from loss due to vacancies. Here’s how locum tenens support can be
 a smart solution:


<ul style="margin-bottom:1rem;">
 <li>
 Locum tenens providers can continue to deliver services so facilities can
 continue to bill, preserving their revenue stream.
 </li>

 <li>
 Locums providers can help ensure
 uninterrupted access to care for a facility’s patients and
 the greater community.
 </li>

 <li>
 Locums can also help
 ease pressures on the permanent staff, boosting morale,
 alleviating patient volumes, and covering vacations and much-deserved time
 off.
 </li>

 <li>
 Hiring locums can help facilities
 save on overtime costs (and the costs of
 <a
 href="https://www.crosscountry.com/blog/locums-to-ease-physicians-top-challenges?"
 rel="noopener noreferrer"
 target="_blank"
 >overworked physicians</a
 >).
 </li>

 <li>
 The locums arrangement is also ideal for facilities and providers to “try
 before they buy,”
 testing out a match to see if it’s a fit rather than diving
 into a permanent commitment. This method for locating providers can
 save facilities compared to the costs of a traditional search.
 </li>

 <li>
 Locums can also keep facilities from having to make permanent hires to
 meet surges and seasonal demands. With the help of a
 skilled locum tenens agency, facilities can rapidly and efficiently ramp up
 and dial back clinical staff as needed.
 </li>
</ul>


 All of this can lead to more satisfied <a
 href="https://www.crosscountry.com/blog/ways-locum-tenens-providers-can-improve-patient-experience?category=Employers+Tips"
 rel="noopener noreferrer"
 target="_blank"
 >patients</a
 > and providers, ultimately helping facilities
 safeguard their reputation, brand, and revenue.


<h2>The Costs of Locum Tenens</h2>

 What’s included in the cost of locum tenens, and what services do locum tenens
 agencies provide as part of their fees?


 A
 <a
 href="https://www.crosscountry.com/blog/8-ways-we-stand-out-as-a-trusted-locums-partner?"
 rel="noopener noreferrer"
 target="_blank"
 >trusted, reputable locum tenens company</a
 >
 can make life much easier for busy health systems, hospitals, clinics, private
 practices, and other healthcare organizations that handle an immense load of
 diverse functions. Locum tenens agencies have
 specialized expertise finely focused on the recruitment,
 hiring, and management of locum tenens providers. Services vary with different
 locum tenens agencies, but agencies generally include the following within the
 locum tenens cost/agency fee:


<ul style="margin-bottom:1rem;">
 <li>Physician’s compensation</li>
 <li>Malpractice coverage</li>
 <li>Housing/accommodations</li>
 <li>Travel to/from assignment</li>
 <li>Automobile rental/reimbursement, if needed</li>
 <li>Any other additional benefits or perks</li>
</ul>


 Services locum tenens agencies typically provide that are included in their
 fees are:

<ul style="margin-bottom:1rem;">
 <li>Searching their networks and pipeline of providers</li>
 <li>Marketing the position</li>
 <li>Recruiting</li>
 <li>Screening</li>
 <li>Vetting and credentialing</li>
 <li>Assisting with licensure</li>
 <li>Coordinating interviews</li>
 <li>Negotiating</li>
 <li>Arranging travel and housing</li>
 <li>Assisting with onboarding and orientation</li>
 <li>Providing ongoing communication and support for provider and client</li>
</ul>


 In addition to these services, a leading locum tenens agency can offer
 flexible, tailored workforce solutions. They’ll be able to
 provide support to
 cover unfilled vacancies, coverage when permanent providers take leave,
 extra hands on deck during peak season, and much more. Some agencies, like
 <a
 href="https://www.crosscountry.com/locums"
 rel="noopener noreferrer"
 target="_blank"
 >Cross Country Locums</a
 >, even have access to the complete spectrum of workforce
 solutions that can be tailored to suit your needs.
 Cross Country Locums is part of the <a
 href="https://www.crosscountry.com/employers"
 rel="noopener noreferrer"
 target="_blank"
 >Cross Country Healthcare</a
 >
 family, giving our clients easy access to a full suite of solutions including locums, including per diem, travel, and permanent
 placement. Cross Country covers the full array of healthcare professionals,
 including physicians, advanced practice providers, dentists, nurses, allied
 health professionals, executive leaders, and more.


 <a
 href="https://www.crosscountry.com/locums"
 rel="noopener noreferrer"
 target="_blank"
 >Partner with us</a
 >
 to get locums support and preserve your bottom line.

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