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PRACTICE TIPS & TRICKS Negotiating a Locum Tenens Contract

By: Neil H. Baum, MD, Tulane University School of Medicine, New Orleans, Louisiana | Posted on: 20 Feb 2024

Middle-aged and senior urologists are opting out of being employed by hospitals or deciding to leave their private practices. As a result, urologists are considering becoming locum tenens (LT). This article will provide suggestions for navigating a locum contract.

It is estimated that by the end of the decade there will be a shortage of 125,000 physicians. Consequently, more hospital systems will embrace LT urologists to fill gaps in care. Traditionally, many physicians choose LT work to supplement their full-time income or as a segue to retirement. Working as an LT physician can have many benefits. A common motivation is to travel and live in a different community.

Factors in an LT Contract

Your pay rate as an LT physician largely depends on the demand and fair market value. However, many organizations that need to fill a physician role quickly or need an in-demand specialist will pay more for an LT provider. There are several factors that can affect your pay rate, including:

  • The length of the commitment
  • The shifts you agree to work
  • Location of the assignment
  • Your skill set, experience, and specialty area

Know Your Dealbreakers

Before initiating contract negotiation, identify your dealbreakers. For example, you may need to be flexible on location to get your desired pay rate. Or you may need to adjust your pay expectations if you’re only willing to accept jobs near your home.

Consider Pay Rate vs Availability

LTs seldom have control of the pay rate, but you may set yourself apart if you show how you bring value to the organization.

Some LTs highlight their flexibility and availability during negotiation. You may position yourself well by being willing to take on shifts that are difficult to cover, such as:

  • Holidays
  • Night shifts on weekdays
  • On-call shifts
  • Weekend shifts

Assess Your Overall Compensation

Begin by asking the organization what they are willing to offer. Other areas of negotiation in your contract include:

  • Housing: Are you responsible for arranging and paying for accommodation during the assignment? If the organization is providing housing, are you happy with the type?
  • Insurance: Does the contract outline malpractice insurance? Who is responsible for any claims filed after your employment ends? Known as “tail coverage,” this critical point could cost you significant money in the long run if you’re not paying attention.
  • Overtime: Will you receive additional compensation for weekend shifts, holidays, or extra hours?
  • Travel: How far is the assignment from your home? Does your contract cover mileage reimbursement, flights, or rental cars?

Ask Confidently for What You Want

You don’t know what the organization is willing to offer unless you ask. Consider these areas when you make the ask:

  • Research salary ranges for specialty physicians in that region before starting negotiations.
  • Decide what salary range you’ll accept to give yourself a little leeway in negotiation.
  • Ask for the salary you want confidently and respectfully. Being clear and positive gives you the best chance to negotiate the terms you want in your contract.

Bottom Line

Negotiating contracts isn’t a skill that comes easily to urologists. But speaking up during contract negotiation and asking for what you want is vital. A contract you are comfortable signing will increase the likelihood of a positive LT experience for you and the hiring organization.

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