The growing reliance on locum coverage
Hospitals across the U.S. increasingly rely on locum tenens physicians to cover staffing gaps. Surveys show that 9 out of 10 healthcare organizations now budget for locum usage each year. At first glance, the model feels straightforward: a temporary physician steps in, patients are cared for, and the hospital avoids costly downtime.
Originally, locums were meant to cover short absences such as vacations or sudden departures. But with today’s physician shortage, hospitals are leaning on them as a long-term solution. This shift raises an important question for leadership: are locums still filling temporary needs, or have they become costly substitutes for permanent hires?
What’s on the Invoice – and what's not
Locum tenens staffing comes with visible costs: higher hourly rates, agency fees, and travel reimbursement. But those represent just part of the picture. Locum tenens also has costs that can’t be tracked on a P&L:
Why hospitals default to locums
The reality is that permanent recruitment takes time - often 6-8 months or longer for certain specialties. During that gap, vacant positions can cost a hospital $6,500 per day in lost revenue, in addition to the long-term cost of patients that leave. Locums can keep the doors open. But when locums become the default rather than the exception, the “hidden” costs begin to snowball.
Looking at the whole picture
We will continue to explore each dimension of the true cost of locum tenens: financial, clinical, cultural, and strategic. For hospital leaders under pressure to balance budgets and quality metrics, it’s time to look past the bill rate and consider the full impact of temporary staffing.
Hospitals across the U.S. increasingly rely on locum tenens physicians to cover staffing gaps. Surveys show that 9 out of 10 healthcare organizations now budget for locum usage each year. At first glance, the model feels straightforward: a temporary physician steps in, patients are cared for, and the hospital avoids costly downtime.
Originally, locums were meant to cover short absences such as vacations or sudden departures. But with today’s physician shortage, hospitals are leaning on them as a long-term solution. This shift raises an important question for leadership: are locums still filling temporary needs, or have they become costly substitutes for permanent hires?
What’s on the Invoice – and what's not
Locum tenens staffing comes with visible costs: higher hourly rates, agency fees, and travel reimbursement. But those represent just part of the picture. Locum tenens also has costs that can’t be tracked on a P&L:
- Onboarding and credentialing cycles: Every new locum must be oriented to the hospital’s EMR, workflows, and departments. Repeating this process dozens of times a year drains HR and clinical resources.
- Team disruption: Rotating providers mean nurses and support staff must constantly adjust, affecting efficiency.
- Continuity of care: Patients lose trust when they see a new provider each visit, and fragmented care can lead to lower satisfaction scores.
Why hospitals default to locums
The reality is that permanent recruitment takes time - often 6-8 months or longer for certain specialties. During that gap, vacant positions can cost a hospital $6,500 per day in lost revenue, in addition to the long-term cost of patients that leave. Locums can keep the doors open. But when locums become the default rather than the exception, the “hidden” costs begin to snowball.
Looking at the whole picture
We will continue to explore each dimension of the true cost of locum tenens: financial, clinical, cultural, and strategic. For hospital leaders under pressure to balance budgets and quality metrics, it’s time to look past the bill rate and consider the full impact of temporary staffing.
