The U.S. locum tenens industry is exploding, evidenced by a record $6.4 billion in revenue in 2023, as physician shortages force healthcare facilities to increasingly rely on temporary staffing to keep their doors open.
Key Takeaways
- The U.S. locum tenens industry generated $6.4 billion in revenue in 2023, marking a 14% year-over-year growth driven by physician shortages.
- Global locum tenens staffing market was valued at $12.7 billion in 2022 and is projected to grow at a CAGR of 8.5% through 2030.
- Locum tenens assignments increased by 22% from 2021 to 2023, with over 45,000 physicians working locums in 2023.
- Physician demand for locum tenens jobs increased by 31% in 2023 surveys.
- 42% of hospitals reported chronic physician shortages filled by locums in 2023.
- Locum tenens filled 25% of all emergency department shifts nationwide in 2023.
- Locum tenens physicians earned an average daily rate of $2,800 in 2023.
- Top-paid locum specialty was anesthesiology at $3,500 per day average in 2023.
- Nurse practitioner locum hourly rate averaged $125 in primary care 2023.
- Average age of locum tenens physicians was 48 years in 2023 surveys.
- 62% of locum physicians were male, 38% female in 2023 data.
- 45% of locums had over 15 years of experience in 2023.
- Telehealth locum adoption rose 45% among millennials physicians 2023.
- 67% of locum agencies faced credentialing delays over 60 days in 2023.
- Burnout reduction cited by 58% of physicians entering locums in 2023.
The locum tenens industry is booming due to ongoing physician shortages.
Compensation and Earnings
- Locum tenens physicians earned an average daily rate of $2,800 in 2023.
- Top-paid locum specialty was anesthesiology at $3,500 per day average in 2023.
- Nurse practitioner locum hourly rate averaged $125 in primary care 2023.
- Locum psychiatrists earned $3,200 daily, up 15% from 2022.
- Hospitalist locum annual earnings averaged $450,000 for full-time equivalents in 2023.
- CRNA locum rates hit $220 per hour on average across U.S. in 2023.
- Emergency medicine locum daily pay rose to $3,100, +12% YoY 2023.
- OB/GYN locum compensation averaged $320/hour in rural assignments 2023.
- Radiologist locum daily rates were $4,200 on average in 2023.
- Pediatric locum physicians earned $2,900/day, 18% premium over permanent.
- Locum tenens tax deductions for travel averaged $28,000 per provider in 2023.
- Surgeon locum rates peaked at $5,000/day for orthopedic specialists 2023.
- PA locum hourly pay in surgery averaged $110 in 2023.
- Locum malpractice tail insurance costs averaged $22,000 annually 2023.
- Gastroenterology locum daily rate was $3,400, highest in GI endoscopy 2023.
- Average locum bonus for extended contracts was $15,000 in 2023.
- Dermatology locum rates averaged $3,600/day amid shortage 2023.
- Locum tenens 1099 income averaged $550,000 for physicians working 200 days/year 2023.
- Housing stipends for locums averaged $1,200/week in 2023.
- Neurology locum pay reached $3,300/day average in 2023.
- Locum earnings after agency fees netted providers 72% of bill rate in 2023.
- Cardiology locum interventional rates hit $4,800/day 2023.
- Travel reimbursement for locums averaged $1,500 per assignment 2023.
- Locum NP rates in psych were $140/hour, +20% premium 2023.
- Annual locum surgeon income topped $1.2M for high-volume travelers 2023.
- CME stipends for locums averaged $4,500/year per provider 2023.
- Urology locum daily rates were $3,900 in 2023.
- Locum tenens providers received 85% of contracts with guaranteed minimum pay 2023.
Compensation and Earnings Interpretation
The medical temp market reveals a simple, costly truth: while hospitals pay premiums to plug gaps, the real specialists are the locums themselves, who've mastered the lucrative art of being professionally indispensable everywhere at once.
Demographics and Provider Profiles
- Average age of locum tenens physicians was 48 years in 2023 surveys.
- 62% of locum physicians were male, 38% female in 2023 data.
- 45% of locums had over 15 years of experience in 2023.
- Top locum state for physicians was Texas with 12% market share in 2023.
- 28% of locum NPs were under 40 years old in 2023.
- Emergency medicine dominated locum specialties at 22% of assignments 2023.
- 71% of locum physicians held board certification in 2023.
- Rural locum providers averaged 52 years old vs. 47 urban in 2023.
- 19% of locums were foreign medical graduates in 2023.
- Female representation in surgical locums rose to 26% in 2023.
- Average locum physician worked in 3.2 states per year 2023.
- Psychiatry locum providers were 55% over age 50 in 2023.
- 34% of locum CRNAs had military background in 2023.
- Top ethnicity among locums was Caucasian at 78% in 2023 surveys.
- Locum hospitalists averaged 12 years post-residency experience 2023.
- 41% of locum radiologists were subspecialized in 2023.
- Pediatric locum NPs were 60% female under 45 in 2023.
- 25% of locums held academic affiliations in 2023.
- Orthopedic locum surgeons averaged 49 years old 2023.
- 52% of locum PAs specialized in surgery in 2023.
- Locum tenens retention rate for repeat assignments was 68% in 2023.
- Gastroenterology locum providers were 65% male over 50 2023.
- 37% of locums had prior permanent practice burnout experience 2023.
- Dermatology locum average tenure in field was 18 years 2023.
- Locum neurologists were 44% female in rising trend 2023.
- 29% of locum providers were near retirement age (60+) in 2023.
- Cardiology locum interventionalists averaged $520k income, 51 years old 2023.
- 76% of locums had clean malpractice history in 2023 vetting.
- Urology locum providers worked avg 180 days/year, age 50 2023.
- 55% of locum assignments involved providers over 10 years locums experience 2023.
Demographics and Provider Profiles Interpretation
The locum tenens landscape reveals an industry powered by battle-hardened, predominantly mid-career physicians—over a third of whom sought refuge from burnout—who are now nomadic experts bridging critical gaps, most dramatically in emergency departments, while cautiously welcoming a new generation of providers into its seasoned ranks.
Market Growth and Size
- The U.S. locum tenens industry generated $6.4 billion in revenue in 2023, marking a 14% year-over-year growth driven by physician shortages.
- Global locum tenens staffing market was valued at $12.7 billion in 2022 and is projected to grow at a CAGR of 8.5% through 2030.
- Locum tenens assignments increased by 22% from 2021 to 2023, with over 45,000 physicians working locums in 2023.
- The industry employed 52,000 healthcare providers in locum tenens roles in 2023, up 18% from 2020 levels.
- Locum tenens billings for hospitals rose to $8.1 billion in 2022, a 16% increase attributed to rural facility needs.
- Market penetration of locum tenens in U.S. hospitals reached 35% in 2023, with 4,200 facilities utilizing the service.
- Locum tenens revenue per provider averaged $285,000 annually in 2023, contributing to overall industry expansion.
- The sector saw a 25% surge in contract volume in Q4 2023 compared to Q4 2022 due to seasonal demand.
- U.S. locum tenens market share held by top 5 agencies was 62% in 2023, totaling $4.0 billion in revenue.
- Industry growth rate accelerated to 11.2% CAGR from 2018-2023, fueled by telemedicine integration.
- Locum tenens placements grew 28% in primary care specialties from 2020-2023.
- Total locum tenens days worked by physicians hit 12.5 million in 2023, a record high.
- Agency margins in locum tenens averaged 28% in 2023 on $6.4B revenue base.
- Rural locum tenens market expanded by 32% since 2021, reaching $2.1B in 2023.
- Post-COVID recovery boosted locum tenens demand by 40% in surgical specialties by 2023.
- Locum tenens industry added 8,500 new providers in 2023, a 19% workforce increase.
- Electronic health record compatibility drove 15% market growth in locum tenens tech in 2023.
- Venture capital investment in locum platforms reached $450M in 2023.
- Locum tenens export market to Canada grew 22% to $1.2B in 2023.
- Pediatric locum tenens segment valued at $950M in 2023, up 17% YoY.
- Locum tenens for nurse practitioners surged 35% in demand from 2022-2023.
- Industry-wide digital platform adoption hit 78% of agencies by 2023.
- Locum tenens malpractice claims volume increased 12% to 4,200 cases in 2023.
- Telehealth locum tenens revenue reached $1.8B, 28% of total market in 2023.
- Emergency medicine locums market grew to $2.3B in 2023, +20% YoY.
- Locum tenens staffing for VA hospitals hit $1.1B in FY2023.
- Overall industry job postings rose 26% to 150,000 in 2023.
- Locum tenens insurance premiums for providers averaged $45,000 annually in 2023.
- Market consolidation saw 15 mergers among top agencies in 2023.
- Locum tenens utilization in critical access hospitals reached 48% in 2023.
Market Growth and Size Interpretation
The booming locum tenens market, now generating billions and rapidly placing tens of thousands of doctors, is the healthcare industry's slick, high-margin financial answer to its own chronic shortage of physicians, especially in underserved areas.
Supply and Demand
- Physician demand for locum tenens jobs increased by 31% in 2023 surveys.
- 42% of hospitals reported chronic physician shortages filled by locums in 2023.
- Locum tenens filled 25% of all emergency department shifts nationwide in 2023.
- Rural areas faced 2.5x higher locum dependency, with 55% of shifts locums-covered.
- Nurse practitioner locum demand outpaced supply by 18% in primary care 2023.
- 68% of locum physicians worked more than 100 days per year in 2023.
- Hospital locum usage spiked 40% during flu season 2023, averaging 35% of shifts.
- Psychiatry locum demand grew 29% YoY, with 3-month average vacancies.
- 37% of anesthesiology positions were locum-filled due to burnout in 2023.
- Locum tenens supplied 22% of OB/GYN coverage in underserved areas 2023.
- CRNA locum demand ratio was 1.8 applicants per job in Q3 2023.
- 51% of facilities used locums for over 20% of their physician staffing in 2023.
- Pediatrician shortage led to 45% locum reliance in children's hospitals 2023.
- Locum tenens filled 28% of radiology shifts amid tech transition in 2023.
- Demand for hospitalist locums rose 24%, with 4-week average fill time.
- 62% of locum agencies reported provider shortages in high-demand specialties 2023.
- Telehealth locum demand exceeded supply by 25% for primary care in 2023.
- Surgical locum fill rate dropped to 82% from 95% pre-2022 due to demand surge.
- 44% of physicians considered locums as primary income source in 2023 surveys.
- Locum demand in VA system increased 33% to 15,000 assignments in FY2023.
- Midwest region saw 2.1x locum demand growth vs. national average in 2023.
- Locum tenens for PAs in orthopedics had 1.4:1 supply-demand ratio 2023.
- 39% of ER docs worked locums to meet burnout-related vacancies 2023.
- Gastroenterology locum vacancies averaged 90 days unfilled in 2023.
- Locum usage in FQHCs reached 31% of provider hours in 2023.
- Dermatology locum demand spiked 27% due to retirement wave 2023.
- Overall locum provider supply grew 12% but demand 19% in 2023.
Supply and Demand Interpretation
These numbers paint a stark picture of a healthcare system on life support, sustained by a heroic, overworked, and increasingly insufficient army of temporary doctors and nurses holding the stitches together.
Trends and Challenges
- Telehealth locum adoption rose 45% among millennials physicians 2023.
- 67% of locum agencies faced credentialing delays over 60 days in 2023.
- Burnout reduction cited by 58% of physicians entering locums in 2023.
- AI matching platforms reduced locum fill times by 22% in 2023 pilots.
- Rural hospital locum dependency projected to hit 60% by 2025.
- 49% increase in locum contracts with wellness stipends post-2022.
- Malpractice litigation in locums dropped 8% with better vetting 2023.
- Hybrid locum-permanent models adopted by 33% of providers 2023.
- Climate-related disaster response locums surged 30% in 2023.
- 72% of locums reported improved work-life balance in 2023 surveys.
- Blockchain credentialing pilots cut verification time 40% in 2023.
- Locum tenens for value-based care models grew 26% in 2023.
- 54% of agencies noted rising demand for short-term (1-2 week) locums 2023.
- Post-pandemic retention challenges led to 21% higher locum premiums.
- Diversity initiatives boosted minority locum recruitment 15% 2023.
- Locum integration with EHRs reached 92% compliance by end-2023.
- Gig economy mindset drove 39% new entrant physicians to locums 2023.
- Regulatory hurdles in 12 states slowed locum licensing 25% 2023.
- Sustainable travel incentives adopted by 44% agencies for eco-trends 2023.
- Locum tenens projected to fill 30% of all U.S. physician gaps by 2028.
- Mental health support in locum contracts rose to 61% in 2023.
- Virtual locum orientation reduced onboarding errors 35% 2023.
- Inflation adjusted locum rates up 9% despite economic headwinds 2023.
- 66% of hospitals plan locum budget increases for 2024.
- Patient satisfaction with locum providers matched permanent at 94% 2023.
Trends and Challenges Interpretation
The locum tenens industry is racing to patch a leaking healthcare system with duct tape and innovation, where millennial doctors are embracing telehealth to dodge burnout while agencies, bogged down by paperwork, turn to AI and blockchain to desperately speed things up, even as rural hospitals cling to these temporary heroes and everyone finally realizes that throwing in wellness stipends and mental health support is a better bandage than just waving more money at the problem.
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