LUGPA Policy Brief: Health Care Provider Shortage Minimization Act

April 2025

The United States is facing a growing healthcare workforce shortage, with the Association of American Medical Colleges (AAMC) estimating a shortfall of up to face a physician shortage of up to 86,000 physicians by 2036. Nearly one-third of current physicians are expected to retire in the next decade, exacerbating the need for solutions that maintain and expand access to care, particularly in underserved and rural communities.

To address this crisis, Congressman Earl L. “Buddy” Carter (R-GA), Congressman Dan Crenshaw (R-TX), Congressman Neal Dunn (R-FL), Congresswoman Claudia Tenney (R-NY), and Congressman Randy Weber (R-TX) introduced HR 1160, the Health Care Provider Shortage Minimization Act. This bill seeks to codify locum tenens providers as independent contractors, ensuring they can continue filling critical staffing gaps in healthcare facilities across the country.

Hospitals and healthcare facilities often rely on temporary, highly skilled physicians and advanced practitioners, known as locum tenens, to cover workforce shortages. These providers step in when permanent staff are on vacation, parental leave, or when facilities face long-term staffing shortages.

A 2022 survey by AMN Healthcare study found that 88% of healthcare organizations reported using locum tenens providers in 2021, highlighting their essential role in maintaining patient care. Each year, 52,000 locum tenens providers deliver care to over 7.5 million Americans.

Key Provisions of the Bill:

• Codifies locum tenens status as independent contractors (1099 employees) to provide regulatory clarity and ensure continued nationwide service.
• Supports rural and underserved communities by ensuring access to temporary healthcare providers who help sustain hospital operations.
• Protects physician flexibility and autonomy, allowing providers to work in multiple locations and specialties on a short- or long-term basis.
• Ensures healthcare continuity by preventing disruptions in patient care due to workforce shortages.

Why This Matters for Independent Practices:

• Preserving Workforce Stability: With ongoing workforce shortages, independent practices benefit from locum tenens providers to maintain patient access during staffing transitions.
• Expanding Access to Care: Rural and community-based practices often rely on temporary coverage to meet patient demand.
• Maintaining Physician Autonomy: The ability to work as independent contractors ensures physicians have flexible career pathways while continuing to provide high-quality care.

LUGPA supports legislative efforts that address the physician workforce crisis and maintain access to specialty care. The Health Care Provider Shortage Minimization Act is a strong step toward ensuring that locum tenens providers can continue delivering essential services, particularly in underserved and rural areas. As the physician shortage intensifies, safeguarding locum tenens providers' ability to operate as independent contractors will help sustain access to quality healthcare nationwide.

LUGPA will continue to engage with policymakers to advocate for workforce solutions that protect independent physician practices and patient access to specialty care.