Provider-centric staffing for purpose-driven healthcare™
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By 2036, the U.S. will face a shortage of 86,000 physicians, with each vacancy costing hospitals an average of $6,575 per day. But there's a solution: locum tenens. These skilled physicians and advanced practice providers quickly cover FTE shortages to prevent further financial strain, reduce turnover, and increase patient retention.
For hospitals and health systems, locum tenens staffing offers a fiscally responsible solution to bridge gaps in coverage, maintain hospital efficiency, and ensure continuity of patient care. And depending on specialty, facilities using locum tenens can expect up to 6x return on their investment within one year.
This post offers a brief look at the financial benefits of locum tenens. For a deeper dive into revenue loss by specialty, hidden costs of permanent hires, and exclusive insights from a former director of provider services at a multi-hospital health system, download our full white paper.
A single physician generates an average of $2.4 million annually, so every FTE shortage represents a significant blow to revenue. On top of the financial strain hospitals face, physician shortages severely limit patient access, resulting in delayed care. In some cities, patients are waiting as long as 70 days for specialty care. These extended wait times delay critical treatments and increase the risk of patients seeking care elsewhere.
With full-time physician recruitment taking an average of eight months for specialists and four months for primary care physicians, each month of an FTE shortage results in a prolonged reduction of patient capacity and significant financial loss. Locum tenens providers bridge these gaps by maintaining care and continuing to generate the revenue that would otherwise be lost during the search for permanent hires.
Locum tenens staffing involves more than provider sourcing—agencies handle critical logistics like licensing and travel, and collaborate with in-hospital staff to expedite credentialing and privileging paperwork. This extra legwork can help facilities secure coverage more quickly to maintain financial stability and optimize performance during physician shortages.
By swiftly filling vacancies and preventing millions in lost revenue per physician, locum tenens providers ensure continuity of care while delivering a return on investment between 2x and 6x across specialties—averaging 3.2x (or 220%) for facilities within one year.
To explore how Caliber’s locum tenens solutions can stabilize your staffing and financial health while driving up to 6x return on your investment, contact us today.
