A locum doctor is an independent contractor, rather than a salaried, W2 employee at a hospital or private group. Most locum tenens doctors choose it because they prefer the lifestyle, not because they couldn’t find a permanent position. In this article, we’ll take a close look at the benefits of being a locum tenens physician, and maybe you’ll discover it’s a path you want to take.
Work-Life Balance
Many locum tenens doctors choose not to work full time. They may work for several weeks or several months at one location, then take some time off. Locum tenens physicians have the freedom to pick the jobs they want. For example, you may choose to work a job that offers 7 days on and 7 days off, with no nights or call duty. You can work nine months of the year, and take summers off. You are in control of your schedule to a greater degree as a locum tenens doctor.
Freedom & Flexibility
Locum tenens doctors have a lot of freedom and flexibility when it comes to their job. Typically doctors go through a locum staffing agency, which allows them to choose which jobs they want to take. If you see a job with hours and a location you don’t like, then you can pass. If you accept a job and don’t like it, you’re only there for a short time. Many locum doctor jobs are at hospitals that have trouble finding full-time employees. Some locum doctors work summers in the north and winters in the south.
Travel
Working as a locum tenens doctor enables you to travel to new places. Some of the places you end up might not be top vacation travel destinations, but you will definitely see some beautiful and unique parts of the country. One obstacle you’ll need to be aware of, though, is licensing. You have to be licensed to practice medicine in the state you will be practicing. So you need to plan ahead.
More Earning Potential
The pay is often above average, especially for new doctors. For most primary care doctors, the pay is great. Some locum doctors earn a higher income than their full-time employee peers. One downside to remember is that there are no workplace benefits with locums. However, the locum agency you go through may offer health insurance.
Customize and Max Fund Your Retirement
Retirement planning flexibility is one of the favorite benefits of being a Locum Tenens Physician. Because you’re an independent contractor, you are your own employer. As a result, you get to decide what “employer” benefits you have and how you want to structure your retirement plan.
In 2020, the maximum you can contribute from your salary to a 401k or 403b as an employee is $19,500. If you’re over age 50, you can add another $6,500. However, the max that can actually go into those plans is $57,000. As an independent contractor, you are self-employed, when means you are both the employee and employer. This means you can contribute the full $57,000 to a self-employed 401k account. The tax benefits on this are massive.
