How does locum tenens contract negotiation work?

During the process of negotiating a locums contract, physicians get several important benefits from working with a reputable agency. A recruiter who understands the job market for your specialty can help with:

Negotiating contract terms: They’ll advocate for fair compensation and reasonable terms throughout the rest of the contract.

Spotting potential concerns: They’ll ensure you understand all the terms of the contract and point out red flags or anything that seems out of the ordinary.

Acting as a liaison: They’ll facilitate communication between physicians and client organizations to finalize contracts efficiently and transparently.

Weatherby Healthcare has specialty-trained expert consultants who are highly skilled at guiding you through all aspects of locums, including advocating for a contract that meets your needs.

There are a few simple steps that will prepare you for a well-informed contract review — and better prepare your locums consultant to negotiate on your behalf.

Research the market: Make sure you understand the going rate for your specialty and what fair compensation looks like in different job markets. Learn more about compensation here.

Know your non-negotiables: Decide in advance as to what’s a dealbreaker and where you’re willing to compromise.

Communicate your strengths: Physicians benefit when their recruiters are in tune with their particular expertise. If you’re highly experienced with in-demand procedures or patient populations, for example, you may have more negotiating power.

Get everything in writing: Don’t rely on verbal offers — until it’s in writing, it’s not official.

It’s always wise to review your entire contract carefully, but pay extra attention to these particular areas:

Scope of practice: Make sure you understand the specifics of your clinical duties, your schedule and on-call hours, and what support staff will be available for patient-care or administrative tasks.

Compensation rate: This is the most frequently negotiated term of a locums contract. Your hourly or daily rate should meet your expectations, and the contract should clearly outline reimbursements for meals, housing, or travel expenses.

Travel and housing: Know who’s responsible for arranging travel, housing, and ground transportation — and who’s paying for it. This extra level of service is what separates a good staffing agency from a great one.

Payment terms: Be sure you understand how you’ll get paid and how long it’ll take. Terms usually range from 15 to 90 days, depending on the client organization and if they use electronic transfers or paper checks.

Termination and cancellation: Review any termination procedures and auto-renew clauses to ensure you’ll have plenty of notice if a contract ends early, and that you’re not locked in for longer than expected. Make sure you’re clear on any penalties if you or a healthcare organization decide to cancel an assignment. Most locums contracts require 30 days’ notice for either termination or cancellation.

Buyout terms: Be clear on any obligations to your agency if you decide to take a full-time position with an organization that hired you for a locums assignment. Hiring organizations will usually cover buyout expenses, and some agencies will agree to a lower buyout if you continue working locums for a certain amount of time before starting a permanent position.

Name-clearing terms: These terms specify how long a healthcare organization has to confirm your name hasn’t been presented by multiple staffing agencies. An ethical recruiter will never present a physician’s name for an assignment without their direct approval.

Malpractice coverage: Be 100% clear on where your coverage is coming from, how long it lasts, and any policy limits. Tail coverage becomes especially important for shorter-term assignments.

While many terms are open to negotiation, a few terms in locums contracts are usually non-negotiable, including those related to cancellation of assignments, malpractice coverage amounts, and indemnification policies.

Locum tenens physicians are responsible for securing their own healthcare coverage and handling their own retirement planning. (Contrary to popular belief, doctors do not get free healthcare!)

While locums physicians may not get the same benefits traditionally granted to permanent employees, many providers find the significantly higher earning potential of locums work easily offsets these additional responsibilities. Learn more about benefits for locums providers here.

Locums contracts can be complex, and a quality staffing agency will take the time to answer any questions, explain the terms in detail, and ensure you understand exactly what you’re signing. They’ll also help you secure the best possible terms with client organizations, putting you in a better position to accomplish your personal and professional goals.

When you work locums with Weatherby, you’ll build a long-term partnership with a personal consultant who understands your specialty, the job market, and the nuances of locums contracts. Our relationships with leading healthcare organizations allow us to advocate for our providers, both in finding the best assignments and finalizing more favorable agreements.

Learn more about the benefits of working locum tenens, or explore our other helpful resources for physicians.