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Five Financial Considerations for Locum Tenens Physicians

Author: Mark C. Royer, MD, MBA

Medical Director,

As a locum tenens physician, you have the opportunity to enjoy many

financial benefits. Here are the top five financial considerations to

keep in mind, along with some additional positive insights:

Tax Implications: While paying taxes as an independent contractor may

seem daunting, it also means that you have the ability to deduct many

expenses, which can help reduce your tax burden. Plus, you have the

flexibility to structure your finances in a way that suits your needs.

Retirement Savings: As a locum tenens physician, you have the ability

to take control of your own retirement savings. By opening an IRA or

solo 401(k), you can invest in your future and reap the rewards of

compounded growth. You may even be able to save more than you would

with an employer-sponsored plan.

Health Insurance: Shopping for health insurance as a locum tenens

physician can actually be an advantage, as you have the ability to

choose a plan that works best for you and your family. Plus, you can

often deduct the cost of your health insurance premiums on your taxes.

Liability Insurance: While malpractice insurance is a necessity, it

also provides peace of mind and protection for your practice. You can

rest easy knowing that most locum tenens companies provide malpractice

insurance. Be sure to use a @NALTO company to have the best peace of

mind that your policy meets industry standards.

Travel Expenses: Many locum tenens physicians enjoy the opportunity to

travel to new places and work in different environments. In fact,

travel expenses are often included in your contract, and if they're

not, you can negotiate for a higher daily rate to help cover these


Being a locum tenens physician provides many unique financial

opportunities, from deducting expenses to choosing your own health

insurance plan. By taking advantage of these benefits, you can create

a financial plan that suits your needs and provides long-term


About the Author: Mark C. Royer, MD, MBA, is an Otolaryngologist and medical director at While employed at a hospital, Dr. Royer and his Wife, Allison (also an ENT surgeon) experienced an overwhelming call burden and began using locums as a solution to this challenge. Their experience led to the creation of, a locum tenens company addressing the unique needs of

physicians and hospitals and health systems. For more information,

please contact them at or visit their website at

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