# What This Bill Does

This bill makes it easier for temporary doctors and advanced medical practitioners to work as independent contractors rather than employees. Specifically, it clarifies that when doctors, nurse practitioners, physician's assistants, and similar healthcare providers work temporary assignments (called "locum tenens" work) at a location for up to one year, they should be treated as self-employed contractors, not employees. This means the healthcare facilities or agencies that hire them won't have to treat them as employees for tax and employment purposes.

# Who This Affects and Why

The bill targets a real problem: many rural and underserved areas struggle to find enough doctors and medical professionals. The idea behind this bill is that by making it simpler and cheaper for healthcare facilities to hire temporary doctors and practitioners as contractors rather than employees, more of these professionals will be willing to work in areas that need them. When someone is an employee, the employer has to pay payroll taxes, provide benefits, and follow various employment regulations. As a contractor, those obligations disappear, which could reduce hiring costs and make it more attractive for facilities to bring in temporary help.

# The Practical Impact

For healthcare workers, this means they could potentially find it easier to pick up temporary assignments in different locations without being classified as employees. For hospitals and clinics, especially those in rural or struggling areas, this could lower the cost of filling temporary staffing gaps. However, there's a tradeoff: contractors typically don't receive employee benefits like health insurance or retirement plans, and they're responsible for paying their own self-employment taxes. The bill only applies to temporary assignments lasting no more than one continuous year at the same location, so it doesn't affect permanent medical staff positions.

Health Care Provider Shortage Minimization Act of 2025

Carter, Earl L. "Buddy"

Health Care Provider Shortage Minimization Act of 2025This bill provides statutory authority to classify qualified locum tenens physicians and advanced care practitioners as independent contractors for federal tax purposes. (Locum tenens generally refers to an individual who temporarily fulfills the duties of another individual and is commonly used to refer to temporary staffing in the healthcare industry.)Under current law, independent contractors are considered self-employed for federal tax purposes and, thus, are required to make quarterly estimated income tax payments and pay self-employment taxes (Social Security and Medicare taxes). (Other federal tax reporting requirements and obligations apply.)The bill defines a qualified locum tenens physician or advanced care practitioner as an individual who provides temporary services for not more than one continuous year at a site of service as (1) a doctor of medicine, osteopathy, dentistry, optometry, or podiatry (authorized to provide such services by the state, U.S. possession, or U.S. territory in which such services are performed);&nbsp;or (2) a nurse practitioner, physician’s assistant, or certified registered nurse anesthetist.&nbsp;The term also includes an individual who provides such temporary services and is otherwise considered a physician under the Social Security Act (e.g., certain chiropractors).