Healthcare leaders are no strangers to the challenges of staffing. For most, maintaining a qualified, fully staffed hospital is an unrealizable dream. The shortage of physicians, among other issues, led to the utilization of locum tenens. These temporary doctors are often a quick fix for gaps in coverage. However, the financial and quality implications of relying on locum tenens can creep up on hospital leadership. While still a popular solution, what are the true costs CMOs and hospital leadership must prepare for when hiring temporary physicians?
Balancing the Books
Compared to past years, the use of locum tenens physicians increased by 14.9% from 2019 to 2022, reflecting the growing reliance on temporary medical staffing. However, this comes at a significant cost. The average hourly or daily rate of a locum provider is usually higher than the wage of an employed provider and, depending on the specialty and region, can significantly impact the hospital budget. These costs can quickly escalate when additional expenses such as travel, lodging, and malpractice insurance are considered.
Hidden Costs and Operational Disruptions
Beyond the direct financial costs, there are hidden costs associated with the frequent turnover of locum tenens physicians. Each new physician requires onboarding, orientation, and time to adapt to the hospital’s protocols and culture. This process can disrupt the continuity of care, potentially affecting patient outcomes and satisfaction. It is easy to monitor and record the consistently rising bill locum tenens invoice hospitals; the tricky part is measuring how they impact sneaking costs through inconsistent care, insufficient operational knowledge, adjustment of team chemistry, and their lack of commitment due to the frequency of change.
These hidden costs are not inherently faulting locum tenens as professionals but simply exposing the byproducts of an imperfect solution. Each hospital has a particular protocol for emergent care, boarding, response times and other quality-of-care criteria. When a locum tenens provider temporarily joins the hospital, there is limited knowledge of these protocols, contributing to increased training costs and reduced quality of care. For a more in-depth analysis of the hidden costs of locum tenens, read our one-pager, A Costly Prescription for Physician Shortages.
Hybrid Healthcare Model
As an alternative to the revolving door or locum tenens, consider incorporating a hybrid healthcare model. By leveraging technology, hospitals can access a broader pool of physicians without the need for physical relocation. This reduces costs and ensures that patients receive continuous and consistent care. It also supports your in-person staff by reducing burnout for in-person physicians and empowering nurses through enhanced collaboration and communication with physicians. By combining in-person and virtual resources, hospitals can optimize their staffing mix to reduce overhead costs. In fact, hospitals with any form of hybrid care experience decreased patient transfers, ensured overflow capacity, and increased higher-paying services without the added expense of recruiting temporary physicians.
This model doesn’t just save money but also improves patient satisfaction and outcomes. Studies show that adding telemedicine reduces response time, improving patient care and overall satisfaction. Telemedicine allows patients to receive care from the same provider, regardless of location. In fact, Eagle Telemedicine provides a “pod of physicians” appropriate for each hospital’s needs, supplying them with increased access to a broader range of specialties, all while establishing a clear process for everyone involved. This continuity is key to building strong patient-provider relationships and a less transitional, more efficient workplace culture, all while providing consistent, quality patient care.
While locum tenens may temporarily fix physician shortages, the long-term financial and operational costs can be counterintuitive. Telehealth presents a viable and cost-effective alternative that not only reduces expenses but also enhances patient care continuity and satisfaction. For hospital CMOs and decision-makers, the commitment to invest in telemedicine over locum tenens is not just about cost savings; it’s about positioning your hospital for sustainable success in a constantly changing healthcare landscape.
We’re so confident that we can reduce your locum tenens expenses by up to 50%, we invite you to take the Eagle Telemedicine challenge. If we are unable to provide you with a pathway to reduce your annual hospital medicine or critical care locums spending by 20-50%, we’ll donate $250 to the healthcare charity of your choice (valid for the first 100 challengers).
We look forward to helping you overcome financial distress and offering your staff and patients the help and resources they need.
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