# What This Bill Does

This bill changes how the government treats temporary doctors and advanced healthcare practitioners for tax purposes. Right now, when a doctor or nurse practitioner works temporarily at a hospital or clinic as a "locum tenens" (a fill-in provider covering for someone else), there's confusion about whether they're employees or independent contractors. This bill clarifies that they should be treated as independent contractors, not employees, for federal tax and employment law purposes.

# Who This Affects and Why It Matters

The main people affected are temporary healthcare providers—doctors, nurse practitioners, physician's assistants, and certified nurse anesthetists who work short-term assignments. Under this bill, they would not be classified as employees of the hospitals or clinics where they work, even if they're there for up to a year. This means the healthcare facilities wouldn't have to pay employer payroll taxes, provide employee benefits, or follow certain employment regulations for these workers. The temporary providers themselves would be responsible for their own taxes and benefits as self-employed contractors.

# The Real-World Impact

The bill's supporters argue this will help fill doctor shortages, especially in rural and underserved areas, by making it easier and cheaper for hospitals to hire temporary providers without the burden of employee obligations. However, this could mean less job security and fewer benefits for temporary healthcare workers. They'd need to arrange their own health insurance, retirement plans, and pay both the employer and employee portions of payroll taxes. For patients, the theory is that easier hiring of temporary doctors means better access to care in areas that struggle to attract permanent physicians, though the actual impact would depend on whether hospitals actually use this flexibility to expand services in underserved communities.

Health Care Provider Shortage Minimization Act of 2022

Carter, Earl L. "Buddy"

Health Care Provider Shortage Minimization Act of 2022This 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).