Locum tenens fill open positions in countless organizations today. The healthcare staffing shortage continues, and many organizations couldn’t function without these temporary workers. Before a physician accepts a locum tenens position, they must look for key points in the contract. What should they know before taking on one of these roles?
Temporary physicians are needed for several reasons. A healthcare organization may turn to locum tenens physicians to fill gaps in the workforce created by doctors leaving for other opportunities. When a physician retires, the organization may call in a locum tenens until a permanent replacement can be found. Temporary doctors may fill in for vacationing physicians. A doctor may also serve as a locum tenens at a practice before committing to a full-time position with the organization.
Decoding the Contract
Before signing a locum tenens physician contract, a doctor must ensure it details the scope of the work, compensation, and liability. This contract is a binding agreement between the doctor and the organization, so it must be reviewed carefully.
The document should outline each party’s rights and responsibilities. These contracts vary by the agreement between the parties. They should outline the duration of the position and other essential details. What should a doctor look for when reviewing the locum tenens contract?
Elements of a Locum Tenens Contract
A locum tenens contract should outline the relationship between the two parties. It must define each party’s role and responsibility, including expectations. This document safeguards both parties if the relationship ends badly.
Physicians need malpractice insurance, as they never know when a patient could file a lawsuit. The insurance protects the physician from the economic consequences of losing the suit. When reviewing the malpractice clause of a locum tenens contract, the physician should understand whether they receive claims-based coverage or if the policy also includes tail coverage. Most locum tenens prefer tail coverage because it covers them beyond the contract period. When reviewing this clause, the physician must pay attention to the coverage amounts to ensure adequate protection.
A doctor may be unable to fulfill the obligations outlined in the contract. This may be due to illness, injury, or other circumstances. When reviewing the agreement, the locum tenens must ensure it includes a standard cancellation window, typically 30 days. Both parties can make adjustments when the contract includes a shift cancellation or out clause.
To protect its interests, a healthcare organization might require a non-compete clause in the locum tenens contract. This clause prohibits the physician from working within a designated geographic region once the contract ends. The clause will provide a timeline for the non-compete restriction. Non-compete clauses are standard in healthcare, but the conditions vary.
Locum tenens must review this part of the contract and negotiate the terms if they are unhappy. However, they should also know there are strict rules in place for these clauses. If the healthcare organization doesn’t abide by these rules, a court may throw the non-compete clause out.
The locum tenens must review the contract to understand the duration of the commitment. In addition, they need to learn under what circumstances either party can terminate the agreement. Look for an auto-renew clause, which renews the agreement unless either party terminates it. Many locum tenens are surprised by these clauses.
The contract should state where the locum tenens will work and whether accommodations will be provided. Some healthcare organizations provide living accommodations, but not all do. The physician must have this information before signing the contract.
Many physicians choose to have an attorney review the locum tenens contract. Never assume all contracts are the same, as each organization and healthcare agency may have a different document. Always read and understand the agreement before signing to prevent problems once the assignment begins.
