When considering the choice between working directly at a hospital (on a PRN basis) versus through a locum tenens company, there are several key factors to consider, especially from a high-earning doctor’s perspective.
Firstly, tax implications play a significant role. With 1099 income, typically associated with locum tenens work, you can deduct work-related expenses, lowering your taxable income. This option is only sometimes available with W2 employment, which is common when working directly for hospitals or on a PRN basis.
Secondly, working with a reputable locum company or recruiter often leads to better hourly rates than direct hospital employment. I have never once, as a locum, met a doctor who works PRN and makes more than me.
![working with a reputable locum company or recruiter often leads to better hourly rates than direct hospital employment](https://locumguru.com/wp-content/uploads/2024/04/working-with-a-reputable-locum-company-or-recruiter-often-leads-to-better-hourly-rates-than-direct-hospital-employment-2.webp)
Hospitals know they need to pay a premium for high-quality, flexible medical professionals. This premium often covers the hourly rate and travel and accommodation expenses. In my experience, it’s rare for a doctor to negotiate a higher rate working PRN directly with a hospital than a locum agency can secure.
Lastly, many hospitals prefer to avoid engaging in the time-consuming process of vetting doctors for short-term placements. They often have exclusive contracts with locum agencies and vendor management systems to handle this vetting process. This arrangement simplifies the hospital’s staffing logistics and provides a steady stream of pre-screened, qualified candidates through the locum agency.
![many hospitals prefer to avoid engaging in the time-consuming process of vetting doctors for short-term placements.](https://locumguru.com/wp-content/uploads/2024/03/many-hospitals-prefer-to-avoid-engaging-in-the-time-consuming-process-of-vetting-doctors-for-short-term-placements.webp)
There is no need to ever work as a PRN unless the hospital/group is willing to pay you as a 1099 independent contractor, and if that rate matches what you can get working locums at another site.