Locums ROI

Caring for your patients and your bottom line.

Successful organizations use permanent staff, contingent labor, and workforce technologies to strengthen their clinical workforce and care delivery. We'll help you optimize a critical part of your contingent workforce strategy by making locum tenens a revenue driver.

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Cost management meets revenue generation.

It all comes down to payor enrollment and consistent billing processes. With the average physician generating millions in annual revenue, getting a locum into an unfilled position stems losses and gets revenue flowing.

It takes up to 226 days to fill a specialty care position, resulting in up to $4.5 million* in lost revenue
It takes up to 189 days to fill a primary care position, resulting in up to $1.9 million* in lost revenue
80% – 90% of all healthcare organizations utilize locum tenens, often to prevent revenue loss gaps**
However, our analysis shows that 50% of locums providers' services go unbilled due to payor enrollment issues

*Days to fill position based on AAPPR 2024 Benchmarking Report

**Locums utilization based on State of Locums 2024 report

Organizations that effectively bill for locums services average 600% ROI. Some health systems see up to 800% ROI.

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Our experts can help you make locums a revenue generator.

Analyzing multiple clearinghouses allowed us to see how many gross billable dollars were submitted to insurance payors for our locums providers on behalf of the health systems that utilized them. We found our best-in-class HCOs are seeing an 8x return on investment for every dollar spent on locums coverage.

See your potential locums revenue.

It's easy to visualize the positive impact of locums on your bottom line. Simply select a specialty from the list below and you'll see the typical costs, as well as revenue generated, from a single day of coverage.

Your inputs

Specialty examples

Hospital collection %

Estimated cost results

Projected gross profit or loss

$13,637

Gross ROI multiplier

10.2x

Total billable charges

$16,998

Total locums investment*

$1,661

*Actual claims data for CHG Healthcare providers. Aggregated from 73% of all claims data in the U.S., leveraged with a blend of commercial, CMS, and proprietary claims data from multiple payors and clearing houses. Compiled quarterly, with a six- to nine-month lag.

Note: Data is directional. Claims represent actual provider billings and not reimbursement (hospital collection). Reimbursement or payor mix will vary for specific hospitals.

How locum tenens drives additional revenue.

Strategically using and billing for locums helps you maximize your system's key revenue driver — physicians. In addition to revenue collected by billing for our locums, here are six other ways they can add money to your organization and support your cost-containment strategy:

Brings in additional revenue collected from facility fees, imaging/diagnostics, lab work, therapy services, etc
Frees up FTE physicians to focus on higher-margin procedures with locums handling lower-acuity cases and follow-up care
Maintains strong referral flow from primary care to high-revenue specialties
Assists with patient retention because maintaining appropriate staffing levels keeps patients from defecting to competitors

Ready to put the power of CHG to work for your organization?

Let’s work together to find lasting solutions that maintain your high standard of care and provide a boost to your financial health.

866.588.5996

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Expert support from our Advisory Services team.

Our Advisory Services team has more than 40 years of clinical workforce design experience. They start by listening to your insights and challenges, and then collaborate on developing the right solutions.