The No. 1 reason hospitals steer away from using Locum Tenens is because of the cost. On average a Locum Tenen earns $155 per hour where as an average permanent physician earns around $80 per hour. What hospitals need to look at when deciding whether or not to use Locum Tenens is not how much they are paying them, but rather how much revenue the physician brings in for the hospital.
The amount of revenue a physician brings in per day for a hospital is magnitudes greater than the amount it cost to hire on a Locum Tenen. Therefore, a hospital can lose money by letting the absence of a physician go by without a temporary healthcare professional filling in.
According to a new revenue survey, a Family Practice Physician makes $5,134 per day for the hospital and a doctor in Orthopedic Surgery makes $11,181 per day. If your Family Practice Physician is on vacation for a week that can be a loss of over $35,000 and over $78,000 for a doctor in Orthopedic Surgery.
When a Locum Tenen Physician costs you around $8,680 per week, the “extra” money you’re paying has no comparison to the amount of revenue they bring in for a hospital per day.
For more information on the revenue survey, click here.