# Plain Language Summary: Health Care Provider Shortage Minimization Act of 2023

This bill changes how the government treats temporary doctors and advanced healthcare practitioners for tax and employment purposes. Right now, when hospitals or clinics hire temporary physicians, nurse practitioners, physician's assistants, or nurse anesthetists to fill short-term gaps, there's confusion about whether these workers should be classified as employees or independent contractors. This bill clarifies that these temporary healthcare workers should be treated as independent contractors, not employees, as long as they meet certain conditions.

Here's what that means in practical terms: Temporary healthcare providers who work at a location for no more than one continuous year would not be considered employees of the hospital or clinic where they work. This means the healthcare facility wouldn't have to pay payroll taxes, provide employee benefits like health insurance, or follow certain employment regulations for these workers. The temporary providers themselves would be responsible for paying their own self-employment taxes and handling their own benefits. The bill requires that these arrangements be documented in a written contract that explicitly states the worker won't be treated as an employee.

The goal is to make it easier and cheaper for hospitals and clinics to hire temporary doctors and advanced practitioners, especially in areas that struggle to attract permanent medical staff. By reducing the administrative burden and costs associated with hiring temporary providers, the bill's supporters believe more healthcare facilities will be willing to bring in temporary workers to fill gaps in care. This could help address doctor shortages in rural areas and other underserved communities where it's hard to recruit permanent physicians. However, this also means these temporary healthcare workers would lose typical employee protections and benefits that come with traditional employment.

Health Care Provider Shortage Minimization Act of 2023

Carter, Earl L. "Buddy"

Health Care Provider Shortage Minimization Act of 2023This 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); or (2) a nurse practitioner, physician’s assistant, or certified registered nurse anesthetist. 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).