Start a Locum Tenens Staffing Agency

1. 1

   Build physician-level credentialing capability

   Locum tenens, Latin for to hold the place of, places licensed physicians, CRNAs, psychiatrists, and advanced practice providers, and provider credentialing is far more complex than nursing. You must verify active licensure, malpractice coverage, DEA registration, and board certifications, and manage facility privileging timelines. Credentialing is the gate on cash; build the engine or your placements stall.

2. 2

   Solve malpractice and tail coverage

   The agency carries or arranges malpractice coverage, typically folded into the bill rate. Understand occurrence-based versus claims-made policies and the tail coverage that protects against claims filed after a policy ends. This is a non-negotiable part of the full locum package and a healthcare attorney should review how you structure it.

3. 3

   Price for high dollars, tight percentages

   Provider rates are high (senior specialists can bill several hundred dollars an hour), so markups of roughly 30 to 50 percent produce large dollar spreads even though the percentage is tighter than nursing. Think in dollars per placement, not markup percentage. The full package (malpractice, credentialing, travel, housing, per diem) is the premium tier; offer a lighter contract variation for providers who handle their own logistics.

4. 4

   Fund the heavier float

   Physician-level payroll rates mean much larger weekly outlays, and facilities often pay on net 45 to 60 terms, so working capital matters more here than on standard contract. Size your capital to the provider rates you place, because one delayed collection at physician rates is a serious cash event.

5. 5

   Sell the revenue leak, not the resume

   A facility without a qualified provider or medical director cannot perform the clinical functions required to bill, admit, or stay compliant, so the vacancy is a revenue leak that compounds daily. Lead with that financial exposure. Target facilities with known provider turnover, rural sites that struggle to recruit permanently, and new openings that need a medical director while they build a permanent team.

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Best for: Healthcare staffing operators with capital and credentialing depth

Not for: Not for the undercapitalized, because physician-level payroll float and malpractice coverage demand real working capital. Not for anyone unwilling to build serious credentialing capability, since provider credentialing and privileging are the gate on every placement. And not for operators who need fast cash, as the credentialing runway pushes first revenue out and rewards patience and capital.