Locum Tenens

What is Locum Tenens? It is an employment arrangement where a physician contracts usually through a third party to cover for physicians in their specialty. These are temporary arrangements usually because the "regular" physician wants to go to a conference or on vacation and is not part of a group. Most locum tenens positions are made available through intermediary agencies, and pay will vary with the agency and your ability to negotiate with them. One such company, LocumTenens.com, states the following about pay rates:

"It depends on your medical specialty and the job description. Most
locum tenens companies pay the physician as an independent contractor
on a per diem basis. Some contracts are based on an hourly scale,
overtime and on-call time are paid at time and a half after a 40-hour
workweek. Here's some examples of pay scales by specialty:


SPECIALTY INCOME (per 8-hour day)

CRNA $720 to $880
Family Practice $400 to $450
Internal Medicine $400 to $450
Pediatrics $400 to $430
OB/GYN $600 to $800
Hospitalist $520 to $760
General Surgeon $650 to $750
Orthopedic Surgeon $800 to $900
Neurosurgeon $1,300 to $1,400
Anesthesiologist $1,000 to $1,500
Psychiatrist $500 to $600
Radiologist $1,200 to $1,500
Cardiologist $600 to $750

Physician salaries outpace production in 2006

So far in 2006, if the benchmark measure is inflation, then physician salaries are above that line, and work RVUs (relative value units) are below that indicator. RVUs are used by CMS and other payers to determine the payment rate for physician services. According to the Medical Group Compensation & Financial Survey, groups report an overall increase in RVUs of 3 percent. Physician compensation, on the other hand, has increased 7.2 percent.

Medicare's proposed 5.1 percent decrease in payment, coupled with the continuing rise in health care costs, is a challenge that groups will need to address. Insurers should expect compensation formulas to become more complex as medical groups try to create incentives for cost control and quality components.

The following specialists saw significant compensation increases: primary care physicians, cardiologists, dermatologists, and noninterventional radiologists.

Physician compensation and work RVUs, 2005–2006
Source: American Medical Group Association. 2006 Medical Group Compensation & Financial Survey