Health Care Provider Shortage Act

Summary#

This bill adds a new section to the Internal Revenue Code that says certain short-term "locum tenens" doctors and advanced care practitioners are not employees for federal tax purposes. It says the individual, the organization that hires them, any agency that contracts with them, and any payor shall not be treated as an employer, and the pay for those services shall not be treated as wages for employment taxes. A "qualified" locum tenens individual must provide temporary services at a site for no more than one continuous year, be licensed to practice in the state where they work, perform services under a written contract that says they will not be treated as an employee, and fall into listed provider categories (doctors, podiatrists, optometrists, nurse practitioners, physician assistants, or CRNAs). The change applies to services performed after the bill is enacted.

What it means for you#

  • For clinicians: If you work as a locum tenens physician or as an advanced care practitioner for up to one continuous year at a site and have a written contract saying you are not an employee, the bill says you are not an employee for purposes of the Internal Revenue Code.
  • For clinics, hospitals, staffing agencies, and payors: The bill says they would not be treated as an employer for those specific temporary services and the payments for those services would not be treated as wages for employment tax rules.
  • For licensing and contract requirements: Providers must be legally authorized to practice in the state where they work, and the services must be provided under a written contract that states the individual will not be treated as an employee.
  • Timing: The rule applies to services performed after the bill becomes law.

Expenses#

No publicly available information on estimated federal costs, revenue effects, or other fiscal impacts is included in the bill text or the provided metadata.

Proponents' View#

The bill’s title and text state the purpose is to help alleviate physician shortages, including in underserved areas, by clarifying that short-term locum tenens clinicians and certain advanced care practitioners are independent contractors for federal tax purposes.

Opponents' View#

No publicly available information on opponents' views or formal objections is included in the bill text or the provided metadata.