How Staff Worx is Revolutionizing the Industry: Price Transparency

Intro to Locum Agencies Pricing Structure

To give you some background, we come from the Locum Tenens world where we held roles such as Physician Recruiters, Credentialing Specialists, and Hospital/Clinic Representatives. During our time there we were able to gain insight into the value that Locum agencies provide and how they structure pricing around different specialties. The majority of the time Healthcare Providers have no idea what Locum agencies charge the Healthcare Facility. And on the flip side, Healthcare Facilities have no clue what the Locums agencies are paying the Providers, leaving a massive grey area that agencies have taken advantage of over time to slowly increase their profit margins.

Depending on the specialty of the assignment a Locum Tenens agency's margins can be anywhere between 30% and 250%. Transparency of pricing structures is a critical aspect that can impact locum assignments in a positive way when implemented. In this blog, we will emphasize the significance of 100% transparent pricing in locum assignments to ensure proper compensation and avoid any misunderstandings. Discover how transparent pricing can benefit both locum agencies and providers in terms of locums pay and negotiating fair locum tenens salaries.

Misalignment and Hidden Fees

Transparent pricing is crucial for avoiding potential issues. For example, when working for a Locums Agency discrepancies can arise when the rate structure on the provider side does not align with the hospital or clinic side. Here are a few examples that highlight the importance of understanding and clarifying pricing structures upfront:

Nightly Pager Fee: Lack of transparency occurs when locum agencies bill hospitals or clinics for a nightly pager fee without passing on any payment to the physician. Such practices can create confusion and leave providers feeling undervalued.

Delayed Call Back Payments: Another common discrepancy involves call back hours. Frequently, a locum agency engages in separate negotiations with both the client and the provider, resulting in significantly contrasting agreements that only benefit the locum agency. For instance, the agency may charge the client for a weekday pager service but neglect to compensate the provider for being on call. Similarly, they may bill the client for 24-hour call coverage and start charging for callback hours right away, despite already factoring in 4 hours of work in the provider's payment rates.

‍Misleading Rate Negotiations: Transparent pricing is crucial during rate negotiations. Locum agencies may cite the client's inability to afford a requested rate to justify offering a lower compensation package to the provider. However, undisclosed mark-ups (typically 30-250%) charged by the agency may already burden the client. Such misleading negotiations can erode trust and hinder providers from receiving fair compensation.

The Benefits of Transparent Pricing

Staff Worx aims to completely remove the middleman from Healthcare Staffing. In doing so, this eliminates large overhead expenses that current Locum agencies have to account for in their pricing structure. With the Staff Worx Client/Provider marketplace the cost of finding coverage is drastically reduced allowing us to pay our Providers more. Before an assignment is confirmed, both parties (Client and Provider) will see a breakdown of rates and charges including Staff Worx malpractice fees and placement fee. On average we save our clients around 60% and pay our providers about 20% more. Transparent pricing in locum assignments offers several benefits for both locum agencies and providers:

Trust and Professionalism: Transparent pricing fosters trust, establishing a professional relationship built on mutual understanding and respect between locum agencies and providers.

Fair Compensation: Transparent pricing empowers providers to negotiate fair compensation by providing full visibility into the pricing structure. This transparency helps avoid situations where providers may unknowingly receive inadequate payment or be taken advantage of.

Enhanced Decision-making: Transparent pricing allows providers to make informed decisions about locum assignments. With access to all relevant financial information, providers can select opportunities that align with their financial goals and expectations.

Conclusion

Transparent pricing is a crucial aspect of locum assignments that should not be overlooked. By ensuring 100% transparency, locum agencies and providers establish trust, facilitate fair compensation, and make informed decisions. Open communication about financial arrangements is vital, avoiding hidden fees, delayed payments, and misleading negotiations. Ultimately, transparent pricing benefits everyone involved, creating a more equitable and satisfying locum tenens experience with fair locum tenens salaries and locums pay.