LAdoc,
Given the insane cost of dental school these days and the cost of buying a dental practice, do you still think dentistry is a better gig than medicine overall?
Yes. Somewhere between 110 and 150% sure on that one..
In terms of tracking locums pay vs. full time pay, I agree sometimes they dont track but one trend is clear: Locums pay is almost always on average HIGHER than annualized than FT pay.
There is literally no field in healthcare where the opposite trend is clear. NONE.
For example, a CLS in my area average pay is roughly $40/hr. Locums coverage for a CLS is priced out at $75-80/hr
Nursing is the same thing.
Different for physicians you say?
Moving on higher level medical fields. Hospital based neurosurgical pay is around $400-450,000 but annualized locums coverage is priced out at over $625,000 (over $2,500 per diem) .
The inverse Locums: FT pay relationship within Pathology is an incredibly negative trend I dont think Ive seen anyone mention outloud yet. But it will absolutely affect new hire pay levels in negative and real way soon. If I can get locums coverage for 1/2 the price tag of a new hire, why the hell would hire YOU?
Locums are superior in almost all ways:
1.) I can dump a locums very quickly if the personalities are a bad fit or it just doesnt work for some reason, there is literally no risk
2.) Im not paying for ANY benefits, meaning no significant re-jigging of 401Ks to create safe harbors etc
3.) Locums have often significant experience meaning they leap into jobs and dont require 3 months of hand holding
and the best part: If I feel like working extra hard for X period of time and making some extra scratch for some stretch goal (say a down on a house in Maui), I just dont bring the Locums in at all!
This is catastrophe for trainees IMO. The math just isnt there anymore.
In business terms what Pathology staffing is experiencing is a "Death's Cross" variant from investing. The irony of course is none of this will translate into lower prices for payors/insurers. There is no way for them to access this oversupply to re-settle prices in their favor. The way medicine is organized, those lucky few with contracts essentially can monopolize the product. With growing vertical and horizontal practice integration it is an even more invincible fortress.
Lets say in an area Aetna drops global (and thus TC as well as PC) Pathology reimbursement rates. In this area, there is not only a Pathology group at the local hospital, there is a podlab spead to local GI, GU and Derm offices. The local Path group drops Aetna and the local subspec practices not to be outdone and lose revenue also drop Aetna. Aetna, now at risk of losing vastly more than they bargained for, relents to prior rates OR just leaves the market (or even worse stays in causing their customers to get soaked for massive out of network charges for 4 different medical fields, not just 1).
Vertical/Horizontal practice integration, ACOs etc will make those lucky few with contracts an Iron Fortress.