How does locum tenens pay and salary work for physicians?
March 19, 2025)
The concept of locum tenens — or temporary healthcare assignments — has been around since 1979, when CompHealth created the industry as a way to send physicians to rural and underserved locations.
Though 28% have worked locum tenens at some point in their careers, and 67% of healthcare providers report being familiar with locums, many still have questions about how these assignments work.
Regardless of the reason for working locum tenens — whether it’s to control your own schedule, find work between full-time jobs, or navigate personal life transitions — providers all want to know about one thing:
The money.
What is locum tenens, and why do physicians choose it?
Learn more about locum tenens, why healthcare facilities use them, and why providers work locums:
What is the average locum tenens physician pay rate by specialty?
Locum tenens providers usually earn a higher hourly rate than physicians who work full time (though rates vary).
"What I really like about CompHealth and locum tenens is that I’m getting a comparable salary to what I would make working elsewhere,” explains Dr. Bonnie Davis, a family practice physician.
What I really like about CompHealth and locum tenens is that I’m getting a comparable salary to what I would make working elsewhere
Here are wage ranges of a doctor working locum tenens for several specialties, according to Locumstory:
Anesthesiology jobs: $275 – $325/hour
Emergency medicine jobs: $125 – $300/hour
Family medicine jobs: $115 – $140/hour
General surgery jobs: $1,400 – $1,800/day
Hospitalist jobs: $150 – $190/hour
Obstetrics and gynecology jobs: $150 – $200/hour
See pay for more specialties: Locum tenens pay trends (Locumstory)
What factors affect average wage for locum doctors?
Several variables affect locum tenens pay, including:
Location and facility type: Facilities in rural areas generally pay locum tenens physicians more than urban facilities because it is more difficult to attract candidates to these areas.
Specialty demand: Physicians who work in neurosurgery, vascular surgery, cardiology, anesthesiology, and emergency medicine can often expect to earn higher salaries. However, there is an ongoing need for general surgeons, internal medicine physicians, and psychiatrists.
Shifts needed: If you are on call or working weekends or holidays, you may earn a higher hourly rate as a locum tenens provider. The length of your assignment — some last only a weekend while others extend for weeks or months — also affects pay.
Patient load and skillset: You will often receive more compensation if your position requires specialized skills or has a higher patient census.
Where do locum tenens physicians earn more money?
Some states offer higher locum tenens pay for physicians. Here are the top 10 states with the highest average locum tenens salary, according to Locumstory:
Delaware
Arkansas
Tennessee
South Dakota
Colorado
West Virginia
Nebraska
Indiana
Illinois
Michigan
Regardless of the state, most locum tenens providers earn a higher hourly wage than they did at their permanent position and can continue to pay off student loans and other expenses.
Dr. Wendy Ballenger, an internal medicine physician and pediatrician, notes that taking temporary positions — and eliminating other expenses, like housing — gives you more income to pay off debts.
Locum tenens helps because it takes your house payment away and allows you to work with your tax advisors. You can make enough money to pay for those loans.
“Many of us, when we graduate from residency, are in hundreds of thousands of dollars of debt. Paying your loans each month can be more than a house payment. Locum tenens helps because it takes your house payment away and allows you to work with your tax advisors. You can make enough money to pay for those loans,” she says.
Why should you work with a locum tenens agency?
When you work with a locum tenens agency, your recruiter negotiates your assignment with the facility so you don’t have to. They ensure you earn a competitive wage but also communicate the shifts you prefer, call or holiday work, and other factors that affect your position. Your recruiter can help you get other benefits that save you money, including per diem payments, shift premiums, and mileage reimbursement.
A locum tenens recruiter also gets to know you and your preferences and looks for positions that fit your salary and location requirements.
I love CompHealth. They’ve been with me throughout my 16-year career.
“I love CompHealth. They’ve been with me throughout my 16-year career. Whenever I’m in a transition point, I call Trudy and ask, ‘What have you got for me?’” Dr. Davis says. “It’s been a wonderful experience working with CompHealth. When doctors tell me they’re thinking about doing locums, I say, ‘Go with CompHealth. They treat you so well, and everything is all in line.’”
Find the ideal locum tenens agency partner: How do top locums agencies compare?
What does the locum tenens agency pay for?
Once you book an assignment, the agency pays your hourly rate. Most locum tenens agencies also cover:
Licensing, credentialing, and privileging
Larger locum tenens companies often have in-house teams to help you gather and maintain the necessary paperwork for temporary assignments. Established agencies should have relationships with boards and facilities nationwide and know how to move through the licensing, credentialing, and privileging processes as quickly and efficiently as possible. Thanks to the recent efforts by the Interstate Medical Licensure Compact Commission, it’s now faster to get a license in more than 42 states across the country.
Medical malpractice coverage
While you’re on assignment, you’re covered by the agency’s malpractice policy. However, the specific type of malpractice coverage may differ by locum tenens agency. CompHealth provides claims-made malpractice, which includes tail coverage for life.
Travel and housing
The locum tenens agency will book flights and rental cars for you and take care of housing (generally a hotel near the facility for short-term assignments and an apartment or home for longer assignments).
I don't plan to return to a permanent job like I had the rest of my career. As long as locums works, I'll keep doing that.
“I plan on working locum tenens for another 10 years. We have some debts we want to pay off in the next three years, and after that, the idea is just to work two weeks on, two weeks off — enough to pay off the mortgage and put some money away,” explains Dr. Robert Brenner, a gastroenterologist. “I don’t plan to return to a permanent job like I had the rest of my career. As long as locums works, I’ll keep doing that.”
What does the locum tenens agency not pay for?
Because locum tenens physicians are independent contractors, they are not employed by the locum tenens agency. This means they must pay:
Taxes
The locum tenens agency does not take state, federal, Medicare, and Social Security taxes from provider paychecks, so physicians are responsible for making estimated tax payments. A locum tenens physician must also pay income taxes in each state they in. However, a state tax credit for the nonresident state tax liability can reduce the home state tax (state of residence generally taxes all income) and should fully or partially eliminate any double-state taxation.
Curious how taxes work for locums? A beginner's guide to locum tenens taxes
Medical insurance and benefits
Physicians must pay for their own benefits, including health and life insurance or retirement plans. Some providers already have benefits through their permanent position. Full-time locum tenens typically buy health insurance through a health exchange or use a spouse’s plan.
However, locum tenens providers, as independent contractors, can often claim more work-related expenses than the typical employee, including travel, meals, housing, work tools and supplies, and continuing education.
Dr. Paymon Kayhani shares how locum tenens is a great way to not only earn extra income, but it can also help to significantly reduce your tax burden.
When and how are locum tenens paid?
The locum tenens agency, not the facility where a provider is working, pays the locum tenens provider. The timeframe and process vary by agency. For example, CompHealth providers enter their time through the MyCompHealth mobile app or online portal — where you manage the details of your current and future assignments — and are paid weekly via direct deposit.
How do healthcare staffing agencies make money?
Hospitals and other healthcare facilities contact locum tenens agencies when they need help finding temporary coverage. Locums agencies then turn to their network of healthcare professionals to find the right match between the provider and the facility.
The locum tenens agency pays the provider for working the assignment. Facilities pay the agency to find a provider to fill the position and take care of things like licensing, credentialing, privileging, housing, and travel arrangements.
Locum tenens is a great way for physicians to earn a competitive wage while also enjoying more flexibility and independence in their careers.
Interested in locum tenens opportunities in your specialty? View current locum tenens openings or give us a call at 800.453.3030.
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