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The healthcare staffing landscape is experiencing a significant transformation, with locum tenens emerging as one of the fastest-growing segments in the industry. According to Staffing Industry Analysts (SIA), U.S. locum tenens revenue reached $9.6 billion in 2025 and is projected to continue its upward trajectory into 2026, building on three consecutive years of steady revenue increases. This sustained growth suggests there may be a fundamental shift coming in how healthcare organizations approach staffing challenges and deliver patient care.

What is Locum Tenens

Locum tenens is a Latin phrase meaning “to hold the place of.” In healthcare, it refers to medical professionals. typically physicians, nurse practitioners, or physician assistants, who temporarily fill in for other providers. These professionals may cover for staff on leave, assist during peak patient demand, or support facilities facing staffing shortages.

Locum tenens providers are often contracted through staffing agencies and can work in a variety of settings, including hospitals, clinics, and private practices. This model offers flexibility for both the healthcare organization and the clinician, allowing facilities to maintain continuity of care while offering providers diverse work experiences and scheduling freedom.

What’s Driving the Locum Tenens Growth?

The expansion in locum tenens staffing reflects several converging factors creating sustained demand for flexible healthcare staffing solutions. These factors include:

• The Aging Population Challenge
  A primary driver of growth in the locum tenens segment is the aging population, with nearly a fifth of Americans now older than 65. As people age, the number experiencing health problems tends to increase, raising demand for medical care for multiple comorbidities. This demographic shift places additional pressure on healthcare systems as these conditions often require complex care plans and specialized treatments.
• Physician Workforce Dynamics
  Healthcare staffing faces a dual challenge: an aging physician population and increasing burnout. Many physicians approaching age 55 are preparing to retire, while burnout is driving others to leave the workforce earlier than planned. These trends are creating staffing gaps that organizations must address to maintain continuity of care.
• Rise of Advanced Practice Providers
  A notable development in the staffing landscape has been the increased utilization of advanced practice providers (APPs). APPs are increasingly managing cases that were historically handled by physicians, with staffing revenue for locum APP positions growing 23.8% year over year in the first half of 2024, according to SIA. This growth reflects both regulatory changes enabling expanded APP roles and the ongoing physician shortage.
• Chronic Disease Prevalence
  The rising prevalence of chronic conditions such as diabetes, cancer, and heart disease is creating sustained demand for physician-supervised care, further contributing to the need for flexible staffing solutions.

Impact on Healthcare Delivery and Organizations

The growing utilization of locum tenens is influencing how healthcare organizations operate and deliver patient care in several important ways.

• Maintaining Continuity of Care
  Healthcare organizations can utilize locum tenens professionals to help prevent care gaps when they are experiencing staffing shortages, demonstrating the critical role temporary physicians play in ensuring patients continue to receive timely care.
• Flexibility in Staffing Management
  The flexibility locums offer in filling coverage gaps or adjusting staffing levels to meet patient demand is another major appeal for healthcare organizations. This flexibility is particularly valuable for high-demand specialties where finding permanent staff can be challenging.
• Financial Considerations
  While locum tenens staffing can be more expensive on a per-shift basis than permanent staff, strategically utilizing locum tenens professionals during shortages can help organization’s offset the financial implications of unfilled positions, like lost revenue and reduced services.
• Quality and Specialization
  Many locum tenens providers bring specialized skills and diverse experience to healthcare facilities. These professionals often choose locum work for the variety and flexibility it offers, bringing insights from multiple healthcare settings.

Strategic Approaches for Healthcare Organizations

As demand for locum tenens continues, healthcare organizations may benefit from developing thoughtful strategies to effectively leverage this staffing model. This may include considering:

• Proactive Workforce Planning
  Organizations can develop strategic workforce plans that anticipate retirements, seasonal variations, and patient demand to get a better understanding of when locum tenens coverage will be needed. This involves analyzing physician demographics by specialty and creating succession plans that may incorporate both permanent hiring and locum tenens professionals.
• Building Strong Partnerships
  Establishing relationships with reputable locum tenens staffing agencies can also be valuable. Look for agencies that prioritize learning about your culture and patient population to get a deep understanding of how to meet your specific needs.
• Technology Integration
  The rise of telehealth is helping to create new opportunities for locum tenens staffing. Healthcare organizations, especially those in underserved areas, may find it beneficial to explore telehealth capabilities that allow them to access a broader pool of locum tenens professionals and offer more flexible service delivery options.
• Credentialing and Onboarding Efficiency
  Streamlining credentialing and onboarding procedures can help organizations integrate locum tenens providers more quickly to boost their impact. By creating a detailed plan for onboarding locum professionals, healthcare organizations can stay prepared to scale staffing whenever needed.
• Hybrid Staffing Models
  One way to build a more resilient workforce strategy is by adopting a hybrid staffing model. By combining permanent staff, locum tenens professionals, and other flexible staffing options, healthcare organizations can create a team that’s both adaptable and prepared for changing demands.

The Future of Locum Tenens

The outlook for locum tenens staffing suggests continued growth, driven by structural changes in healthcare that appear likely to persist. In fact, market research indicates that the U.S. locum tenens staffing market is projected to grow at a CAGR of 7.74% through to 2034.

This growth trajectory may reflect not just temporary market conditions but fundamental shifts in how healthcare is delivered and how medical professionals approach their careers. As healthcare organizations continue to address staffing challenges, locum tenens represents an important option for maintaining patient care while managing operational needs.

Organizations that view locum tenens as a strategic component of their workforce planning, rather than simply a temporary solution, may be better positioned to navigate the evolving healthcare landscape. By understanding the drivers of growth and implementing thoughtful strategies to utilize locum providers effectively, healthcare organizations can work toward turning current staffing challenges into opportunities for improved operational resilience and patient outcomes.

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