What is the Difference Between Locum and Per Diem? | OnCall Solutions (2024)

When exploring different work options, healthcare professionals often come across two terms: “locum” and “per diem.” The difference between them is simple but important.

Locum refers to a temporary, well-defined role for providers at a healthcare facility.

Per diem refers to working on an as-needed basis without a long-term commitment.

While both locum tenens and per diem positions offer unique advantages and flexibility, it’s essential to understand their different implications to make informed career decisions. Here, we explore the key distinctions between locum and per diem roles in the healthcare industry—and how they impact medical providers like you.

Key Differences Between Per Diem and Locum Tenens

Flexibility Vs. Predictability

Per diem work allows healthcare professionals to work on an as-needed basis, filling in for shifts or providing additional support when required. This flexibility works well for individuals who prefer a varied schedule or have other commitments. However, it also means per diem also means shifts can be far less predictable.

Meanwhile, locum tenens positions involve a commitment, often ranging from a few weeks to several months, providing stability for healthcare professionals in temporary assignments.

Both provide great flexibility for medical providers looking to increase their earnings, gain experience, and pay down medical debt early.

Scheduling: As Needed Vs. Planned

Per diem shifts can be posted on short notice whenever the capacity for medical facilities runs high or unforeseen staffing issues occur. For that reason, per diem shifts appeal to medical providers who can pick up shifts without a great deal of pre-planning.

In contrast, locum tenens positions tend to have more structured schedules. Locum tenens physicians or other healthcare providers typically agree to a specific duration of service and have a predetermined schedule during that time—so they know when they’re working and how many hours they’ll be expected to cover.

Location

Per diem agreements work with the understanding that medical providers work in the area, since these shifts can be posted with little notice for immediate staffing needs.

Locum tenens positions may require healthcare professionals to travel to different locations or facilities to fill temporary staffing gaps. But that is not always the case.

Some locum tenens and moonlighting agencies specialize in connecting providers with local loc*ms positions, making it easy for medical professionals to take on loc*ms positions without disrupting their regular lives.

Pay

When it comes to compensation, both per diem and locum tenens roles provide an excellent means to earn extra income.

Per diem positions typically offer hourly rates, compensated on a per-shift basis.

Meanwhile, locum tenens positions typically offer competitive compensation packages, including a fixed salary or hourly rates, and sometimes additional benefits like housing.

Support Can Vary

The level of support provided can vary between per diem and locum tenens positions. Per diem workers are generally integrated into existing teams and are expected to be familiar with a facility and its practices—or to learn them quickly. As such, some per diem work apps have gained a negative reputation for throwing providers into work environments with little support or guidance.

Locum tenens positions can provide a far different experience, especially when providers partner with medical staffing agencies that provide comprehensive support, including assistance with licensing, credentialing, and administrative tasks.

Whether you’re seeking per diem, loc*ms, or moonlighting work, it’s important you seek out a medical staffing agency that will provide you with the tools and resources you need to thrive in your new work environment.

OnCall Solutions: Locum and Moonlighting Medical Staffing

OnCall Solutions is a medical staffing agency, and we’re committed to ensuring that providers thrive in their new positions. OnCall Solutions connects providers with their ideal positions, whether those are short-term, per diem, long-term, loc*ms or moonlighting. Our flexible and customizable staffing solutions let you decide the schedule!

With our medical support teams, local model, medical credentialing services, and unparalleled support, providers can capitalize on the full range of benefits these positions offer.

Are you interested in learning more about loc*ms and moonlighting positions? Review our blog for access to all of our resources.

If you want to partner with OnCall Solutions, connect with one of our recruiters today.

What is the Difference Between Locum and Per Diem? | OnCall Solutions (2024)

FAQs

What is the Difference Between Locum and Per Diem? | OnCall Solutions? ›

Locum

Locum
A locum, or locum tenens, is a person who temporarily fulfills the duties of another; the term is especially used for physicians or clergy.
https://en.wikipedia.org › wiki › Locum
refers to a temporary, well-defined role for providers at a healthcare facility. Per diem refers to working on an as-needed basis without a long-term commitment.

What does locum mean in healthcare? ›

The concept was named after the Latin phrase locum tenens, which means to hold a place. “Locum” definition: A locum, or locum tenens, is a person who stands temporarily for someone in the same profession, usually in reference to physicians or clergy.

What does locum tenens mean? ›

To go by the literal locum tenens definition, translated from Latin, it means "to hold the place of, to substitute for." Locum tenens providers work at healthcare facilities on a temporary basis to fill gaps in care or occupy vacant positions until a full-time provider can be found.

What is locum working? ›

There are different titles of locum work: “A locum is a suitably qualified doctor with adequate GMC registration, who will fill a post on a temporary basis for a period of anything from a few hours to three months or a year. Locum work arises from vacancies caused by holidays, illness, unfilled posts etc.”

Why does locum tenens pay more? ›

You can earn even more as a locum by being willing to travel to remote or rural areas that need providers. You can also earn more by working nights, weekends, extended shifts or holidays. If you specialize in an area that is particularly difficult to fill or have a unique skill set, you may also be in greater demand.

Is locum the same as per diem? ›

Key Differences Between Locum Tenens and Per Diem

Locum tenens positions can last from a few days to several months, while per diem roles are typically short-term, often on a daily basis.

What is an example of a locum? ›

A locum, or locum tenens, is a person who temporarily fulfills the duties of another; the term is especially used for physicians or clergy. For example, a locum tenens physician is a physician who works in the place of the regular physician.

What is the highest paid locum tenens specialty? ›

Full-Time Locum Tenens Earning Potential by Specialty
SpecialtyHourly RateAnnual Perm Salary
OncologistsUp to $2,200/day$402,000
Pediatricians$100 – $150$225,000
Pediatric Critical Care Specialists$175 – $250$370,000
Psychiatrists$145 – $180$275,000
15 more rows

Why do hospitals use locum tenens? ›

Locum tenens can play a critical role in reducing burnout and ensuring quality patient care. By incorporating locum tenens, hospitals can enhance the work-life balance of their permanent providers by helping evenly distribute workloads and offering time off to recharge and prevent burnout.

What is the difference between travel and locum tenens? ›

Travel vs. Locum Tenens. First, an important distinction: within the healthcare industry, “travel” is generally associated with nurses, while “locum tenens” is most often associated with physicians and advanced practice providers (nurse practitioners, physician assistants, nurse anesthetists and nurse midwives).

What are the disadvantages of locum? ›

Responsibility for benefits and taxes

And since locum tenens are 1099 employees, they're responsible for filing their own taxes. “The downside when you're an independent contractor is having to get your own health insurance,” says Dr. Gruss.

How does a locum get paid? ›

Providers who work locum tenens assignments don't earn a salary because they are not considered employees. Instead, agencies and facilities pay locum tenens an hourly, daily, or shift-based rate because they are considered independent contractors.

What is locum short for? ›

'Locum' is an abbreviation of the Latin phrase 'locum tenens', which literally translates as 'place holder'.

How long can locum tenens work? ›

It varies from assignment to assignment, but most locum assignments last between two weeks and two months, depending upon the situation and need. Physicians select the assignment length that suits their interests. In some cases, locum tenens physicians receive permanent offers from their assigned facility.

What is the profit margin for locum tenens? ›

It's estimated that the gross margin achieved by hospitals and facilities that bill for locum tenens primary care provider services ranges from 200%-344%. That greatly exceeds the average loc*ms daily rate paid by a healthcare facility.

How to make money as a locum? ›

7 Ways to Boost Your Income as a Locum
  1. #1: Pick up extra locum shifts. The most obvious way to earn more as a locum is to work extra shifts. ...
  2. #2: Work holidays and nights. ...
  3. #3: Keep your options open. ...
  4. #4: Refer a friend. ...
  5. #5: Have your annual registration fees paid. ...
  6. #6: Save on subscriptions. ...
  7. #7: Negotiate rates.
Oct 16, 2023

Why do hospitals use Loc*ms? ›

Hospitals can hire loc*ms on a short-term basis to fill staffing gaps caused by vacations, medical leave, or unexpected increases in patient volumes - such as during flu season.

What is the difference between full time and Loc*ms? ›

Locum Physicians have more flexibility and autonomy over their schedules. Unlike permanent doctors who adhere to their hospital's schedule, you can make your own schedule.

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