Monday, April 4, 2016

Locum Tenens Pricing: A Fundamental Shift is Just What the Doctor Ordered


Every young industry has its growing pains, and the locum tenens physician market is no exception, especially when it comes to its cyclical pricing model. In many cases, the cycles have been a roller coaster ride in recent years.

Some locum tenens placement firms drive the roller coaster. They mark up prices as demand increases, and do so with little regard for healthcare budgets or the long-term impact of their pricing on a hospital or physician practice’s financial health. Healthcare organizations are often all too willing to do business with these firms to fill an immediate need, and often make short-term decisions based more on emotion than rational thinking.

Working in various physician leadership roles as a hospitalist for more than 10 years, I have seen it all. And now as President and CEO of a locum tenens firm, I want to do something about it.
No More “Fulfillment at Any Cost”
At LocumConnections, we support new models that are bringing equilibrium to an erratic market. Healthcare organizations are taking many cost-trimming approaches seriously while infusing quality performance measures, and are looking for partners in recruitment and retention who want to help them achieve their goals.

In response, staffing firms are streamlining their processes in an earnest effort to reduce costs—implementing Vendor Management Systems (VMS), for example, to reduce time-to-fill cycle length and help them work more efficiently. Managed Service Providers (MSP) can have the same impact. Many of the larger locum tenens firms are incorporating these tools into their business as they seek sensible ways to avoid the “fulfillment at any cost” trap.

Another model is emerging, too. A firm like ours that has its roots in hospital and practice management can put its experience to good use. LocumConnections’ roots grew from actual case studies of clinical recruitment and staffing success in mitigating challenges with hospital partners in the temporary contract hospitalist sector. In short, our model is built on success, for success.

Prudent, Sustainable Solutions

We use a VMS system, too, to make our sourcing processes as efficient as possible. But we also take a consultative role to make staffing decisions that do more than just meet a hospital’s immediate need for a doctor. We take into account the long-term as well as the short-term impact. And because of our medical experience, we are able to put ourselves in the shoes of the physicians and healthcare organizations we work with and respond with a solution that is prudent, compassionate, and sustainable—not just for the organization, but for the healthcare industry, as well. Quick fixes just won’t suffice any longer.

The Association of American Medical Colleges predicts a shortage of up to 90,000 physicians by 2025 if the healthcare sector fails to aggressively adopt more efficient care and payment models. All the more reason for a fundamental shift in the way staffing challenges are addressed, at prices hospitals can afford, and for doing so today. That’s why we’re here.

by Talbot “Mac” McCormick, MD

No comments:

Post a Comment