Long-Term Independent Contracting: The New Age of Healthcare Employment

The landscape of healthcare employment is shifting rapidly. Traditional full-time roles for you are being supplemented—and sometimes replaced—by more flexible, entrepreneurial arrangements. Chief among these is the rise of the long-term independent contractor model, which empowers you to work with greater autonomy and adapt their professional lives to meet personal and career goals. If you are considering a more flexible career path, the world of independent contracting might be just what you need to align your expertise, professional freedom, and income potential.

Let’s explore what kinds of organizations are embracing it, why employers are turning to this model, and why this might be the right move for you.

Who Are These Employers?

The Innovators

Firstly, there are the innovators. These are typically forward-thinking healthcare organizations that recognize the value of flexibility and expertise that independent contractors bring. They are often at the forefront of medical technology and services, looking to attract top talent in various specialties without the constraints of traditional employment models.

• Telemedicine Companies: Many telehealth platforms hire physicians as independent contractors to provide remote consultations. These companies, like Teladoc and MDLive, are at the cutting edge of healthcare technology, offering flexible work schedules for doctors across various specialties.

• Health Tech Startups: Startups that are developing new medical technologies or apps often seek physicians to consult on a contractual basis. These roles can range from advising on product development to providing clinical insights.

The Flexibility Seekers

Then, there are the flexibility seekers. These employers value the ability to scale their workforce up or down based on patient demand. By engaging doctors as independent contractors, they can ensure that they have the right number of practitioners at the right times, without the overhead of full-time salaries during slower periods.

• Locum Tenens Agencies: Firms like CompHealth and Weatherby Healthcare specialize in temporary or short-term contracting options for you. They match you with short-term assignments that can often bridge into multiple months or annual assignments, allowing healthcare facilities to adjust their workforce based on fluctuating patient volumes.

• Urgent Care/Occupational Health Chains: National and regional urgent care providers often hire physicians as contractors to meet the variable demand of walk-in patients. Examples include Concentra and American Family Care.

The Specialists’ Havens

Specialist centers, such as those focusing on elective procedures or specific treatments, also lean towards hiring long-term independent contractors. They require doctors with niche skills for prolonged periods but may not have the need or resources to bring them on as full-time employees.

• Outpatient Surgery Centers: These centers may contract surgeons and anesthesiologists for specific procedures, allowing them to maintain a roster of specialized physicians without the commitment of full-time employment.

• Diagnostic Imaging Centers: Radiologists are frequently hired as independent contractors by imaging centers like RadNet, which provides a range of diagnostic imaging services.

Hospitals Using Employment Lite

Hospitals and healthcare corporations are utilizing the employment lite model as a hybrid alternative to conventional employment arrangements, numerous hospitals are now adopting this innovative long term independent contracting approach as a means to support doctors' success while simultaneously reducing the administrative burdens and financial costs associated with managing employees. In this forward-thinking paradigm, hospitals maintain primary control over the doctor's professional services and business throughput, ensuring that organizational standards and patient care quality are upheld. Meanwhile, doctors benefit from greater professional autonomy, allowing them to make more independent decisions regarding their practice. Additionally, doctors can leverage the micro-business structure for its tax efficiency advantages, which can result in significant financial benefits.

This model creates a win-win scenario where both the healthcare institutions and medical professionals can operate more effectively within their respective roles.

Read More: Every Physician Needs To Know About Employment Lite

Those Engaged in Recruitment and Retention Battles

The healthcare employment landscape is increasingly recognizing the value of flexible work arrangements, particularly when it comes to recruiting and retaining physicians. Here’s why certain types of employers might be more inclined to consider long term independent contracting:

1. Academic Medical Centers

Academic medical centers are often at the forefront of medical innovation and education. They may find independent contracting appealing for several reasons:

• Attracting Talent: These centers can attract physicians who are interested in balancing clinical practice with research and teaching opportunities

• Flexibility: Offering flexible contracts can help retain staff who might otherwise leave for private practice or other opportunities that offer more autonomy over their schedule

• Professional Development: Non-employee contracts can be structured to include time for professional development, which is attractive to physicians who are eager to advance their careers through continuous learning and research.

2. Medical Groups or Practices

Medical groups or practices, especially those focusing on primary care, specialty care, or urgent care, might adopt independent contracting arrangements for reasons such as:

• Work-Life Balance: These contracts can offer a better work-life balance, which is a significant factor in physician job satisfaction and retention

• Specialization: They allow practices to bring in specialists for specific periods or procedures without the long-term commitment of traditional employment, which can be cost-effective and efficient

3. Rural or Underserved Areas

Employers in rural or underserved areas face unique challenges in recruiting and retaining physicians. Employment lite or long-term contracting can be particularly beneficial in these settings:

• Recruitment Advantage: By offering a contractual alternative to traditional employment, smaller employers can compete with large national companies who are often less flexible.

• Incentivizing Relocation: Flexible contracts can include incentives that make relocation to these areas more attractive, such as signing bonuses or housing allowances.

• Addressing Shortages: They provide a means to fill gaps in care where there may not be enough work to justify a full-time position but where a physician’s services are still critically needed.

Employment lite contracts offer a win-win solution for both employers and physicians, aligning the needs of healthcare organizations with the desires of modern healthcare professionals for flexibility and autonomy in their roles. As the healthcare industry continues to evolve, we can expect to see an increase in the adoption of such agreements to meet the changing demands of the workforce and patient populations.

Which Employers Are The Most Resistant?

On the other hand, employers who are inflexible or unwilling to offer employment lite contracts often have more traditional and rigid operational structures. These may include:

• Urban Hospital Systems: The labor pool for physicians is significantly larger, therefore these employers have the power to be inflexible with their contracts.

• Large Hospital Systems: They may prefer the control and consistency associated with W-2 employment.

• Organizations with Complex Governance: Where integration into the system’s practices and culture is essential, there might be less flexibility for employment lite contracts.

• Practices with a Strong Emphasis on Teamwork: In such settings, the continuity provided by W-2 employment can be seen as crucial for maintaining team dynamics and patient care standards.

Employers may also be hesitant due to concerns about the legal and financial implications of non-traditional employment contracts, such as compliance with labor laws and potential loss of control over work schedules and quality of care.

Why Doctors Are Choosing Independent Contracting

1. Economic Realities

Healthcare institutions are increasingly turning to independent contracting due to economic constraints, and this shift presents a compelling opportunity for you. By embracing this model, you can significantly reduce administrative burdens while taking direct control over your income management. Operating as a single-member professional micro-corporation offers you a strategic advantage: a tax optimization playbook that enables you to retain 10-15% more of your income compared to traditional W-2 employees. This approach not only enhances your financial well-being but also empowers you with greater autonomy in your professional journey.

Read More: Retained Income: How to Keep More & Work Less

2. Work-Life Balance

To those of you, especially among the younger generations, who seek the freedom and autonomy that independent contracting offers, know that you are paving a path toward empowerment. Choosing a career as an independent contractor allows you to practice medicine on your own terms, granting you the power to harmonize personal commitments with professional responsibilities. Embrace this journey as it opens doors to a fulfilling and balanced life where your passions and obligations coexist beautifully.

3. Reducing the Hazards of Being A Corporate Employee

The reality is that burnout among doctors employed by corporations is approaching 60%, a concerning statistic that highlights the impact of losing professional autonomy and control over one's career in large corporate settings. To navigate this challenge, it's crucial to empower yourself in the marketplace by considering self-employment as a micro-business owner. This path offers an opportunity to regain control and foster a more fulfilling professional life.

Ready to Embrace Independent Contracting? SimpliMD Has Resources for You

If the benefits of long-term contracting appeal to you, here’s what you need to know to make it work for you. Independent contracting requires planning, business savvy, and tools that empower you to operate as a self-employed physician with confidence and effectiveness.

Take Action Today

1. Start with a Personalized Micro-Business Consult for Only $99 My consult includes a one-year SimpliMD membership, granting you access to over $2,500 in business resources that simplify your entry into independent contracting.

2. Enroll in Our Course: Creating a Practice Without Walls If you’re ready to build a micro-corporation, this course will guide you through the essentials. You’ll learn to create a business that aligns with your career goals, increases your earning potential, and maximizes your autonomy in the healthcare marketplace. If you follow this link, today only, I’ll give you access to this course for 50% off! Don’t miss out!

3. Gain Access to My Business Planning Bundle :The SimpliMD Business Planning Bundle includes our Business Plan Template specifically crafted for self-employed doctors, a Micro-Corporation Budget Template that saves hours of time, and a SWOT Analysis Template to optimize your planning. These tools are designed to streamline your transition to independent contracting.

The healthcare employment landscape is evolving, and those willing to embrace new models will be best positioned to succeed. Independent contracting offers doctors a unique balance of flexibility, financial benefits, and professional satisfaction. For those ready to redefine their career path, SimpliMD offers the tools, guidance, and support to make the transition a success.