Locum Tenens vs Per Diem: Which one is for you?

Selecting between locum tenens and per diem work is a main career decision for healthcare providers seeking flexibility, income stability, and expert growth. Both options offer structure, compensation, advantages, and billing needs. Knowing these differences can be helpful for doctors to make informed decisions while confirming accurate repayment through reliable Medical Billing Services. This instruction breaks down Locum Tenens vs Per Diem: Which one is for you in the USA? Gain a detailed understanding of how proper billing and credentialing play a crucial role in both models.

What is Locum Tenens?

The term locum tenens comes from the Latin word meaning to hold a place. The locum tenens temporarily fills the gaps when the long-term providers are on leave, during the demanding, on while services recruit full-time staff. Assignments generally end in weeks to several months. It may include travelling, a physician may work in a rural clinic for one assignment and then move to a large urban clinic for further. 

Key features

• Fixed-term contracts (weeks to months)
• Travel is often required.
• Preductable schedules.
• Agency supported credentialing and logistics.
• Significant access to advantages.

CMS guidelines for locum tenens physicians

Under Medicare, locum tenens arrangements should adhere to certain CMS rules:

Qualifications

• Should have a valid NPI.
• Must have a completed, unlimited medical license in the state of specific practices.
• Does not require to be enrolled in Medicare.
• Speciality might differ from the doctor being replaced.

Limitations

• It cannot be used for more than 60 persistent days to reposition the same physicians.
• Cannot be utilised to expand practices.
• Applies to Medicare only; other payers must have distinctive rules. 

Billing

• Services are billed under the absent doctors’ NPI.
• Claims must involve modifier Q6.
• The practices should sustain detailed facilities records.
• Non-physician providers cannot be utilised as locum tenend under Medicare.

What is Per Diem?

Per diem means per day. Physicians’ work, or daily wages, shift by shift. It fills instant or short-term requirements in healthcare services. These roles are often local and provide maximum schedule flexibility. For example, physicians might select to work some days a week or only during the higher demand period of wages. It makes per day perfect for those who balance multiple commitments.

Key features

• No permanent contracts.
• Shift picked up as required.
• Mostly local works.
• Paid hourly or daily based wages.
• Generally, no advantages are involved.

Per Diem Payment Overview

Per diem rates are generally utilised in skilled nursing facilities under Medicare’s prospective payment systems. Payments depend upon the regular rates adjusted for:

• Patient acuity.
• Functional restrictions.
• Comorbidities.
• Geographic wage distinctions.

In some clinics, Medicare typically uses diagnostic-related groups instead of per-day rates.

Hiring Process Comparisons

Key Distinctions: Locum Tenens vs Per Diem

Pros and cons of locum tenens

Which option is better for you?

Select a locum tenens if you:

• Desire structured contracts and steady revenue.
• Enjoy travel and new surroundings.
• Prefer agency helps with logistics and credentialing.

Choost Per Diem if you:

• Despite full management over your schedule.
• Prefer working locally.
• Are you comfortable, safe in your own advantage?

Both options are valuable – it’s based on your priorities.

Conclusion

Locum Tenens and Perdiem roles offer flexibility beyond traditional employment. Whatever path you may select, DocVaz Medical Billing delivers reliable medical billing services to maintain your revenue on record and concentrates on what matters most.

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