The Top 2 Most Common Licensure Contract Options with Locum Tenens Agencies
When it comes to obtaining a new state license through your locum agency, there are often a few different types of contracts to choose from. Which locum agency healthcare contract for licensure is right for you?
We talk about the benefits of going locum and working with a locum agency quite a lot, and that’s simply because there are so many! Along with work schedule flexibility and higher earning potential, there are also endless opportunities to travel across the states.
Many healthcare professionals wonder how they will be able to travel where and when they want, simply because they lack the state licenses needed to travel with such freedom. Luckily, many locum tenens agencies like Barton Associates offer licensure services for locum professionals who want to obtain new licenses to use on assignments.
At Barton, we are committed to taking the headache out of obtaining new state licenses. That’s why we have a dedicated licensing team that works to make the entire process as easy as possible. Our representatives communicate with medical boards on a medical providers’ behalf, and simplify the often difficult instructions, requirements, rules, and regulations provided by med boards.
Most agencies who offer this service, including Barton, offer it at little to no cost to the healthcare provider. This is a huge money-saver for locums, considering the expensive associated application, registration, and renewal fees, which have a habit of adding up within the blink of an eye!
Of course, for any free benefit offered by a managed services agency, the lack of purchased services most often comes in exchange for some form of other commitment or obligation. This trade-off will be outlined in your health care licensure contract or service agreement.
It is expected that your recruiter should understand the service contract options available to you, and be able to explain what they entail in easy-to-understand, non-legalese language. Needless to say, you should always carefully read any licensing agreement to mitigate risks before you seal the deal.
But if you’re curious about obtaining new state licenses through a locum agency, we’ve outlined the top most common types of healthcare state licensure contracts offered by agencies, so you know what to expect in the travel healthcare industry!
The Time-Bound Healthcare Contract for New State Licensure
The most common licensure agreement that your locum tenens agency may offer is some form of the time-bound licensure agreement. If your agency has more than one licensure agreement to choose from, the time-bound licensure healthcare contract will likely be the first option your recruiter proposes, as this agreement generally gives both parties the most “bang for their buck”.
Under the time-bound licensure contract, your locum agency undertakes the responsibility for fully financing any and all costs associated with the acquisition of your new state license up front. This means that the locum provider doesn’t have to pay a single penny throughout the entire process; from the start of the application, up until their certificate of licensure is in their hands.
In exchange for receiving their new state license on-the-house, when a locum signs a time-bound licensure agreement, they are obliged to maintain loyalty to working locum tenens jobs solely through the issuing agency for some specified amount of time. This time commitment can differ from agency to agency, but is generally binding for a six- to twelve-month period, give or take.
One common worry that healthcare professionals have about the time-bound licensure agreement is that pledging to work locum assignments through only one agency for such a long period of time is obviously a large and lengthy commitment.
However, this concern also usually comes along with the misconception that the locum will be forced to work locum jobs with that agency throughout the entire time they are under contract, even when they don’t want to.
While, naturally, your agency financed and obtained your license for you because they want you to use it on locum assignments through them, taking away your freedom and flexibility of schedule would defeat some of the greatest benefits of working locums. In reality, even under a time-bound licensure agreement, you’re under no obligation to take any locum jobs you don’t want, as no agency would want to suck the joys out of locum work for their valued medical providers.
The Reimbursement Healthcare Contract for New State Licensure
If you’d rather trade off up-front funding for your desired license in exchange for a lesser commitment, then the reimbursement licensure healthcare contract may be a better option for your needs. A reimbursement licensure contract is pretty much exactly what it sounds like, and, unlike a time-bound agreement, providers have unlimited time to fulfill their end of the deal.
Under a reimbursement agreement, while the locum agrees to front all costs and fees associated with the licensure process out of their own pocket, they retain the capability to receive repayment in full from their agency following the provider’s completion of the outlined stipulations.
Generally, the condition that must be met by the locum in order to collect their reimbursement is to complete a certain amount of workdays on a locum assignment through the issuing agency, within the state in which the new license was obtained/granted.
Like time-bound license agreements, the terms of reimbursement contracts may also vary between agencies, however, the number of completed work days required to secure reimbursement commonly falls somewhere near 30 days.
These workdays can typically be completed entirely on the provider’s own time, as long as the newly issued license is being utilized in the state in which it was issued. This means that the locum not only has unlimited time to meet the required stipulations for reimbursement, but they can also compound days worked in the state of licensure from separate assignments.
With this contract option, given that the reimbursement requirements are fulfilled as detailed by the agency, locums still get the benefit of receiving a shiny new state license at no personal expense, but with a far greater level of flexibility, and no hard and fast commitments.
At Barton, we are dedicated to making the licensure process as painless as possible for our locum medical providers. That’s why no matter what route to licensure you choose through us, our licensing team shoulders the hard work in order to get you working and traveling faster!
Interested in getting your next state license under your belt? Get in contact with a recruiter today!