So, yeah, “year-in-review” stories are typically published before the ball drops on New Year’s Eve. We know!
But for Locumpedia’s patent-pending annual recap of the year that was in locum tenens, we wanted to take our time to really figure out what the heck happened in a locum tenens industry that morphed into a titan in healthcare staffing in 2023. For the streamers out there, consider this our version of “Spotify Wrapped.”
While one year may be just a blip in the grand scheme, the year 2023 was hugely consequential in the locum tenens world. Last year marked dynamic market changes, technological advancements in AI and telehealth, significant growth in the number of locums agencies and record agency revenues, myriad mergers and acquisitions, and leadership changes galore.
Locumpedia chronicled all these developments every step of the year, and in our annual Locum Tenens Year in Review (a new tradition we began last year), we encapsulate the milestones, trends, and big moments that shaped the year in locums.
Locum Tenens Grows Up (and Up)
Ominous clouds gathered over the economy as the calendar flipped to 2023. Many prominent economists predicted an imminent recession. In January, 85% of healthcare leaders said they expected a challenging year in healthcare staffing due to acute staffing shortages, rapid inflation, rising interest rates, and supply chain disruptions. There was just one problem: The recession refused to happen.
Midway through the year, Staffing Industry Analysts reported an astonishing 25% growth in 2022 locum tenens revenue, leading SIA to revise its 2023 growth projections up to 10%. Locum tenens was proving the only resilient healthcare staffing segment, helping it gain national attention in the pages of the Wall Street Journal.
CHG Healthcare’s annual “State of Locum Tenens Report” reinforced the WSJ article, highlighting physicians’ shift to temporary work due to extreme burnout; they reported an 88% increase in physicians working locum tenens since 2015, rising to 50,000 providers working on a temporary basis. The report found that physicians and hospital execs now hold locum tenens in high regard, a turnabout from the years when locums were often seen as inferior to full-time docs. Physicians increasingly welcome additional income and improved work-life balance afforded by the famed locum lifestyle. Meanwhile, healthcare facilities value locums providers for ensuring seamless and efficient hospital operations.
Recent trends show greater potential for further growth in the ranks of locum tenens providers. In early November, Definitive Healthcare reported over 145,000 healthcare providers, mainly physicians, exited the industry in 2021 and 2022; internal medicine and family practice were the most impacted. Burnout was a critical factor in their decision, reported by 42% of departing physicians.
This trend shows the need for more ways to mitigate burnout, and locum tenens providers have proven a viable solution. Amid escalating talent shortages, the industry repeatedly relied on locum tenens, contributing to revenue growth for locum tenens agencies and further attracting attention from private equity and strategic partners. This symbiotic relationship led to a significant increase in mergers and acquisitions in the locum tenens sector.
The Locum Tenens M&A Boom
In December, Locumpedia published an in-depth report on M&A activity in locum tenens and how the meteoric rise of the locum tenens staffing segment fueled its $6.1 billion share of the healthcare staffing market in 2022. If SIA’s current 12% projection for 2023 holds true after the money is all counted, the market will be worth $7 billion by early this year.
The industry shattered SIA’s earlier projections, stuffing the coffers of locum tenens agencies and catching the eye of private equity investors and healthcare industry leaders.
Acacium Group, a London-based healthcare staffing provider, bought Sumo Medical Staffing in July, extending its footprint in the US. Epic Staffing Group also notably acquired locums staffing agency SBG Healthcare, a physician staffing agency focused on the permanent and locums placement of advanced practice providers and physicians in family medicine, gastroenterology, neurology, and more.
In November, AMN Healthcare finalized a deal with MSDR, encompassing Medical Search International and DRW Healthcare Staffing, that carried a whopping $300 million price tag. Each company brought in over $100 million of revenue last year, positioning AMN for juiced revenue growth in 2024.
Our coverage in locums M&A activity included profiles of two boutique investment firms that brokered these deals: Nolan & Associates and Quadriga Partners. Both discussed what contributed to recent M&A activity and the processes they followed to secure these transactions.
But Wait, There’s More
In June, Jackson Healthcare acquired LRS Healthcare to broaden its nursing and allied staffing scope. Two months later, its subsidiary LocumTenens.com enhanced its clinician engagement by branching out with the purchase of Inlightened, a tech platform linking healthcare professionals with clients. Elite365 purchased Kobor MedSearch, a healthcare staffing firm specializing in anesthesia staffing, as part of its strategic growth in the locum tenens field.
In addition to purchasing SBG Healthcare, Epic Staffing Group snatched up Chicago Telerad, a diagnostic imaging and teleradiology services provider. Finally, in November, Aya Healthcare purchased Winnow AI, a platform designed to recruit passive candidates. Winnow AI will integrate into Aya’s Provider Solutions division, complementing Aya’s existing DocCafe brand, which focuses on active physician job seekers.
Industry News of Note in 2023
Money might talk, but a billion dollars changing hands wasn’t even close to the full story of locum tenens in 2023. Here are other notable developments you might recall – or might have missed:
- NALTO-Backed Health Care Provider Shortage Minimization Act Introduced: Reps. Earl L. “Buddy” Carter (R-GA), now with the support of Neal Dunn (R-FL), re-introduced the Health Care Provider Shortage Minimization Act into Congress on Aug. 15. The bill’s primary focus is codifying locum tenens providers as independent contractors. NALTO began grassroots efforts to educate Congress on the importance of this bill in 2020 and has since urged members, along with clinicians and facilities, to reach out to members of Congress with their support.
- MPLT Healthcare’s New CEO: Liz Hale earned a promotion to CEO of MPLT Healthcare, succeeding company founder Jay Mays. Hale brought extensive experience, having held VP roles in three nationally recognized healthcare staffing firms.
- SIA’s Best Staffing Firms: Staffing Industry Analysts (SIA) named seven healthcare staffing agencies as the 2023 “Best Staffing Firms to Work For,” including Assurgent Medical Staffing, Austin Major Group, Locums Choice, LLC, Fusion Healthcare Staffing, Floyd Lee Locums, All Star Healthcare Solutions, and Aya Healthcare.
- NALTO/NAPR Annual Convention: In February, NALTO/NAPR united locum tenens and physician recruiting staffing agencies in San Antonio, Texas, for their combined annual convention to network, learn the latest trends, and work together to improve business practices.
- New NALTO Board Members: During the NALTO/NAPR convention, NALTO announced four new board members for the 2023-2026 term: Robert Dickey (Medicus Healthcare Solutions), Paul Miller (CompHealth), Gregory Prine (Weatherby Healthcare), and Olivia D’Angelo Reed (Jackson + Coker).
- CHG Leadership Changes: Leslie Snavely was named president, and Bill Heller became the new chief sales officer for the largest physician staffing company in the country. CHG also promoted three executives: Lisa Grabl as group president, Brooke Bowers as president of CompHealth Locum Tenens, and Kerry Norman as executive VP of operations.
- All Star Healthcare Solutions Promotion: Ken Bernstein was appointed CEO of All Star while retaining his role as president.
- SIA ‘40 Under 40’ Recognition: Five professionals from the locum tenens and physician staffing community achieved the Staffing Industry Analysts “40 Under 40” list: Michelle Bousquet, VP of Organizational Effectiveness, Floyd Lee Locums; Ethan McWilliams, Co-CEO, Wilderness Medical Staffing; Steven Endsley, VP, Workforce Solutions, AMN Healthcare; Tara Osseck, Regional VP, Recruiting, Jackson Physician Search; and Parth Bhakta, Founder and CEO, of Vivian Health.
- Health Carousel Locum Tenens Rebrands: Health Carousel Locum Tenens rebranded to Caliber Healthcare Solutions, reflecting its mission as a provider-centric locum tenens staffing solution for healthcare facilities.
- The History of Locum Tenens: For Locum Tenens Week 2023, Locumpedia published the first-ever complete story of locum tenens from its foundation to today. The locums history piece is a fascinating story; we’ll touch more on it later in this wrap-up.
- Fall Fly-In at Park City: NALTO hosted its largest-ever Fall Fly-In in September. Locumpedia joined 180 locum tenens industry leaders, agency reps, clients, and providers who trekked to Park City, Utah. As an exhibitor, we had the chance to catch up with some old friends and see new faces. One familiar face in attendance was Dr. Therus Kolff, co-founder of CompHealth and a member of Icon Medical’s board of directors. Dr. Kolff, one of the founding fathers of the locums industry, mentioned “how cool it was” for him to see all of these locums industry professionals together in one space. CHG Healthcare invited Dr. Kolff to attend and briefly speak at the event after reading our landmark “Locum Legends” series, which featured Dr. Kolff prominently, including a one-on-one interview with the locums pioneer.
Locumpedia Makes Some News
As we see it, we’re dedicated to being an impartial source for all things locum tenens. We deliver comprehensive, unbiased news coverage, but we don’t just cover the news. Sometimes, we also make the news, and below, we’ve detailed some of the news we made in 2023:
- In March, Locumpedia launched NationalDoctorsDay.org after we were surprised to learn there was no official Doctors Day logo! Our unofficial website, recently updated for 2024, is a free resource bursting with all the tools and inspiration a staffing firm needs to honor physicians on March 30. The website includes a marketing toolkit with high-resolution logos, brand styles, a proposed Doctors Day theme, and social media graphics for any digital or print marketing campaign.
- In April, Locumpedia announced the beta release of LocumsAI, a groundbreaking artificial intelligence tool designed for the locum tenens industry. This innovative product has the potential to transform how locum tenens staffing agencies create job descriptions, streamlining their recruitment efforts and boosting job ad response rates. LocumsAI is powered by ChatGPT-4, which allows you to write a job description with flawless grammar and a brand-appropriate voice to help attract top talent.
- In August, we completely updated our six-part No-BS Guide to Locum Tenens for 2023 with fresh information, guidance resources, and stats, all as part of our mission to bring transparency to the locum tenens industry and help provide new locum tenens providers with everything they need to pursue the locum lifestyle.
- In October, we surveyed 500 locum tenens providers about what they preferred most in an agency’s job description. We found that recruiters need to write succinct yet highly detailed job descriptions if they want to be noticed by providers (LocumsAI can help!). The survey included five questions highlighting four hospitalist job descriptions posted on our job board from four different agencies, with any explicit identifiers removed to avoid potential bias. Providers told us they cared most about “transparency, benefits, and agency reputation.” We found that the “perfect job description” sells the value propositions of locum tenens, like flexibility and work-life balance, while highlighting specific job responsibilities, third-party validation, and assignment benefits in a concise, bulleted format.
The Untold History of Locum Tenens is Told
Kicking off our celebration of Locum Tenens Week 2023 in August, we published the first conclusive history of locum tenens told through the lens of those who founded the industry in the late 1970s. Through countless hours of research and interviews with several living industry founders, we were able to piece together the full story. Our account details the wild journey from locum tenens’ humble beginnings in rural Western communities to the industry’s evolution as an essential model of healthcare staffing.
- From ‘Ski Bum’ to Locums Legend: We first interviewed locum tenens founding fathers Dr. Alan Kronhaus, founder of KRON Medical, and Dr. Therus Kolff, who founded the first locum tenens staffing company, CompHealth. Dr. Kronhaus was a longtime locums vet who recruited the first locums physicians through the Health Systems Research Institute (HSRI) in the early 1970s.
- Around the World and Back Again: Dr. Kolff explained how and why he created the first locum tenens business, taking us from his journey around the world to the halls of Harvard University and then back to Utah, where he planted his flag in locum tenens history forever. He spared no details, covering where this name came from, the many “stupid mistakes,” victories, and pivotal moments that shaped the locums landscape into what we know it as today.
- Jackson Coker’s Impact on Physician Recruiting: We also interviewed Max Reiboldt, CEO of Coker Group, who shared with us the impact his predecessor, Jackson C. Coker, had on physician recruitment, as well as his insights into how the industry has changed from an outsider’s point of view.
- AI Interview with the Late Dr. Ken: Through the magic of ChatGPT, we interviewed the late Dr. Ken Tuefel, founder of Interim Physicians, who served as Medical Director of the company until he died in 2021. Dr. Ken, as he was affectionately known by the staff at Interim, is also credited with co-founding locum tenens.
Welcome to Locumpedia Board
In 2023, six more locums agencies began posting jobs on our free locum tenens job board, bringing the total to 22 agencies who’ve posted over 4,000 jobs. The newbies were:
Locum Tenens Providers of the Year Award Returns
Every year, tens of thousands of physicians and advanced practice providers perform heroic work across the country while working on a temporary basis — not an easy feat to accomplish. A decade ago, the now-defunct LocumLife magazine would annually spotlight the providers who stood out the most that year, and we thought it was time to revive that tradition.
So, in late 2022, we announced the inaugural Locumpedia Providers of the Year Award to recognize outstanding locum tenens caregivers. We asked locums agencies to nominate their providers who had gone above and beyond to serve patients over the past year. Our expert panel of judges combed through the providers list to select five winners out of 19 entries.
The winners of the Locumpedia Providers of the Year Award for 2022 were Dr. Ala Shiyab (of Weatherby Healthcare), PA-C Josef Burwell (Wilderness Medical Staffing), Dr. Aeriel Avery (Floyd Lee Locums), Dr. Leo Alonso (Barton Associates), and Dr. Anoop Rao (Health Carousel Locum Tenens, now Caliber Healthcare Solutions).
In October 2023, we accepted nominees for our Second Annual Locum Tenens Providers of the Year award campaign. This year, we received 30 nominations, and we’ll announce the winners at the 2024 NALTO/NAPR conference in March.
Breaking Down Our News Coverage
Locumpedia isn’t just another news outlet – we’re your go-to gurus for everything that goes down in the locum tenens world. With our exclusive mission, we’ve had a front-row seat to the action, serving up juicy insights and invaluable nuggets of wisdom for staffing agencies, healthcare organizations, and locum tenens providers.
In 2023, we published 83 news stories (an average of nearly 7 stories per month) across five departments: Feature Stories, Locums Digest, Locums CME, Locums Briefs, and Locum Profiles.
Our Top 10 Most Popular Stories of 2023
The stories that resonated with our readers the most last year covered the growth of the industry, artificial intelligence, and the previously untold history of locum tenens.
Our Top 10 stories comprised two Locums Digests, two Locums CMEs, five Feature Stories, including two from our Locums Legends series, and one Locums Brief.
The Top 10 Topics in Locum Tenens
The most common themes Locumpedia News covered last year were similar to years past, with issues such as staffing shortages, provider wellness, and burnout taking on extra importance. As with the business world at large, a new topic crept into the top 10 in 2023: artificial intelligence and the impact it’s expected to make on healthcare in the months and years ahead.
- NALTO’s support for the Healthcare Provider Shortage Minimization, as well as leadership changes and event coverage.
- The factors contributing to physician burnout, such as administrative burdens and lack of support, and methods to address burnout in the industry.
- Locum tenens careers, their benefits, and why doctors choose to work in locum tenens roles in the first place.
- Addressing physician wellness and improving burnout by offering programs tailored for locums and incorporating wellness metrics into healthcare delivery.
- Artificial intelligence, including the integration of ChatGPT into healthcare, and AI’s impact on the overall healthcare industry.
- How telehealth changes and advancements increased access for remote and underserved communities and streamlined patient-doctor interaction.
- Rural healthcare, often overlooked, remained a focal point for coverage in 2023. We published articles examining the unique challenges and triumphs in rural healthcare settings.
- Our reporting shed light on the growing recognition of mental health issues among healthcare workers.
- Staff shortages, physicians leaving the field of medicine, and the impact of locum tenens filling in staffing gaps.
- We explored physician compensation trends and how those are impacting the locum tenens sector.
