Questions about Locums Contracts

[doctorette]

About to sign for my first job after Residency. I have a few questions about locums contracts and hope those here with experience can help.

There is a "non-compete" clause that says once contract is signed you cannot work for the hospital through a different agency or directly with the hospital. But what if you can figure out which hospital this recruiter is representing and then contact and sign with them directly prior to signing a contract with locums. Would that be a loophole? I know the recruiter takes a massive cut of the amount the hospital pays it to hire hospitalists, hence a hospitalist hired directly by the hospital would get paid more instead of one through a locums group.

Seems like it is too good to be true. I am not a lawyer so I am seeing if someone may be able to help.

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[rokshana]

About to sign for my first job after Residency. I have a few questions about locums contracts and hope those here with experience can help.

There is a "non-compete" clause that says once contract is signed you cannot work for the hospital through a different agency or directly with the hospital. But what if you can figure out which hospital this recruiter is representing and then contact and sign with them directly prior to signing a contract with locums. Would that be a loophole? I know the recruiter takes a massive cut of the amount the hospital pays it to hire hospitalists, hence a hospitalist hired directly by the hospital would get paid more instead of one through a locums group.

Seems like it is too good to be true. I am not a lawyer so I am seeing if someone may be able to help.

once you are presented to the company, that part of the contract is in effect, even if you end up not taking the job or they decide to take another candidate...the locums companies will check to see if you have been presented by someone else. The programs will be wary of working with someone directly after they were presented by a company...their is generally a finders fee the programs agree to pay to the locums company if they decide to directly employ you....its not a forever thing, typically 2 years from presentation.

this is usually in the master contract you sign with the locums company, so would be difficult to figure out the hospital except for the first place they are presenting to you...locums companies typically take half...meaning if you are getting say, $150/hr, they get $150/hr as well...the hospital is paying $ 300/hr for you. They are not in for altruistic reasons after all, they are a business and want to make money...but they use that for covering your med mal, credentialing costs, license costs, travel cost, etc, so makes sense they get something too.

 

[doctorette]

once you are presented to the company, that part of the contract is in effect, even if you end up not taking the job or they decide to take another candidate...the locums companies will check to see if you have been presented by someone else. The programs will be wary of working with someone directly after they were presented by a company...their is generally a finders fee the programs agree to pay to the locums company if they decide to directly employ you....its not a forever thing, typically 2 years from presentation.

this is usually in the master contract you sign with the locums company, so would be difficult to figure out the hospital except for the first place they are presenting to you...locums companies typically take half...meaning if you are getting say, $150/hr, they get $150/hr as well...the hospital is paying $ 300/hr for you. They are not in for altruistic reasons after all, they are a business and want to make money...but they use that for covering your med mal, credentialing costs, license costs, travel cost, etc, so makes sense they get something too.

Yes, I am talking about the first place they present to me, along with the master contract. They revealed the name of the first place, and I haven't signed anything. But you're saying because I was likely already presented to the first place, even if I contact them directly, they won't be able to hire me?

 

[IMGASMD]

You can, if you’re good, the probably negotiate a better rate. But you’d also have to consider you’d have to get your own malpractice, arrange lodging and transportation. Lastly, if it’s a job you ultimately don’t like, you may have burned a bridge. (Locum companies are usually so desperate, you likely won’t be affected more than a few month....)

Good luck.

 

[rokshana]

Yes, I am talking about the first place they present to me, along with the master contract. They revealed the name of the first place, and I haven't signed anything. But you're saying because I was likely already presented to the first place, even if I contact them directly, they won't be able to hire me?

if you have been formally presented to the hospital/clinic system by the locums company, then for them to hire you directly, then they will have to pay a finders fee to the company...this is usually in the 10-20K range, so they are going to really want you to pay that much money....usually this happens if one is wanting to join permanently...then its a small amount to pay to get a physician that fits in their program, but rarely are they going to want to cough up that kind of money for a temporary employee.

I wouldn't worry about some perceived imbalance in pay...one of the advantages of working locums is you can negotiate your terms...ask for a higher per hour rate...if you get the amount you feel is appropriate for compensation, then it doesn't really matter what the companies cut is...

 

[IMGASMD]

if you have been formally presented to the hospital/clinic system by the locums company, then for them to hire you directly, then they will have to pay a finders fee to the company...this is usually in the 10-20K range, so they are going to really want you to pay that much money....usually this happens if one is wanting to join permanently...then its a small amount to pay to get a physician that fits in their program, but rarely are they going to want to cough up that kind of money for a temporary employee.

I wouldn't worry about some perceived imbalance in pay...one of the advantages of working locums is you can negotiate your terms...ask for a higher per hour rate...if you get the amount you feel is appropriate for compensation, then it doesn't really matter what the companies cut is...

If op wants to stay for long term, then things can be worked out.
my first job, I asked for an increase within the first 5 shifts, and got it. I was working for a locum company, but I went directly to the site medical director. The workload was a high and night shift. 125 —> 150. 20% increase, I thought I did good.

 

[rokshana]

If op wants to stay for long term, then things can be worked out.
my first job, I asked for an increase within the first 5 shifts, and got it. I was working for a locum company, but I went directly to the site medical director. The workload was a high and night shift. 125 —> 150. 20% increase, I thought I did good.

lol...you did!

the locums companies usually have a 20% leeway that they can approve without having to renegotiate the contract...so asking for an increase generally will work if they like you and you have a good reputation ...or the place is really desperate