Locum tenens work has been part of American healthcare for decades, but in 2026 it looks fundamentally different than it did even five years ago. What was once viewed primarily as a gap-filling measure, a way for hospitals to cover vacations or staffing shortfalls, has evolved into a mainstream career path that an increasing number of physicians are choosing intentionally. If you have been curious about locum tenens but are not sure whether it fits your situation, here is what you actually need to know.
What Locum Tenens Actually Means
Locum tenens is a Latin phrase meaning “to hold the place of.” In healthcare, it refers to physicians, nurse practitioners, or physician assistants who temporarily fill in for other providers, whether to cover staff on leave, assist during peak patient demand, or support facilities facing staffing shortages.
In practice, a locum tenens physician might work a two-week assignment at a rural hospital in need of emergency coverage, spend several months filling in at a community health center while a permanent hire is recruited, or rotate through a series of assignments in different regions and settings as a deliberate long-term career strategy. The arrangement is far more flexible and varied than the term suggests.
The Market Is Growing Fast
Locum tenens is not a niche corner of healthcare staffing anymore. The U.S. locum tenens market reached an estimated $9.6 billion in 2025 and is projected to grow to $9.9 billion by 2026, driven by persistent physician shortages, rising patient demand, and greater reliance on flexible workforce solutions. Locum tenens is the only area of temporary healthcare staffing that has grown every year since 2021, and 80% of healthcare organizations plan to maintain or increase their locum tenens usage going forward.
An estimated 56,000 physicians now work as locum tenens, a number that reflects a shift from locums as periodic coverage to a strategic career choice. That is not a small niche. That is a significant and growing slice of the physician workforce.
Why Demand Is So Strong Right Now
Several converging forces are driving demand for locum physicians to levels that show no sign of easing.
The physician shortage is the most significant. The AAMC projects the U.S. could face a shortage of up to 86,000 physicians by 2036, with more than 20% of practicing physicians already 65 or older and retirement rates accelerating. As experienced physicians retire faster than new ones complete training, the gap between supply and demand widens, and locum tenens coverage fills much of that gap in the short term.
HRSA forecasts steep shortages through 2037, with particularly pronounced deficits in vascular surgery, thoracic surgery, and family medicine. The bottleneck of limited residency slots combined with high physician retirement rates means U.S. healthcare will remain structurally short-staffed for the foreseeable future.
Burnout is also a driver on the supply side. With 55% of physicians reporting debilitating stress and 54% reporting burnout at levels comparable to the height of the pandemic, more physicians are turning to locum tenens as a way to reduce those pressures while continuing to practice.
Finally, telehealth changes taking effect in 2026 are shifting utilization across virtual and in-person care settings, with limits on home-based telehealth moving more services back to hospitals and driving higher demand for in-person coverage in primary care, geriatrics, and outpatient areas.
Which Specialties Are in Highest Demand
Locum tenens demand spans a wide range of specialties, but some areas are seeing particularly intense need right now.
Anesthesia tops the demand projections with a 55% expected increase, while psychiatry and behavioral health remain critically underserved, with over 160 million Americans living in areas with mental health provider shortages. Emergency medicine, hospitalist medicine, internal medicine, and family medicine consistently rank among the most requested locum tenens specialties, largely because these are the front-line roles where staffing gaps have the most immediate impact on patient access.
In 2024, internal medicine and family medicine were the two most in-demand locum tenens specialties, underscoring the outsized role locums play in supporting primary care access nationwide.
What Physicians Actually Like About It
The appeal of locum tenens goes well beyond novelty. Physicians who make the switch consistently point to several concrete benefits.
Autonomy over schedule. Locum tenens physicians choose when and where they work. There is no mandatory call, no internal committee obligations, and no pressure to hit productivity metrics set by a health system whose priorities do not always align with yours.
Competitive compensation. With demand for locum providers continuing to rise, locum tenens compensation remains highly competitive across specialties, and some specialists including surgeons and oncologists have seen their pay increase over the past year.
Exposure to different practice environments. Working across multiple settings gives locum physicians a breadth of clinical experience that permanent positions rarely offer. Many physicians find this variety professionally energizing after years in a single system.
A path back from burnout. By removing long-term administrative obligations and internal productivity pressures, locum tenens allows clinicians to focus on patient care, giving some physicians the reset they need to stay in medicine longer than they otherwise would have.
What to Consider Before Making the Move
Locum tenens is not the right fit for every physician, and going in with realistic expectations matters.
Licensing across multiple states takes time and involves real administrative work, though many agencies assist with this process. Benefits like health insurance and retirement contributions are typically not included in locum arrangements, so physicians need to account for those costs when evaluating compensation. And while the flexibility is real, the lifestyle of moving between assignments is not for everyone, particularly physicians with deep community ties or family situations that make frequent travel impractical.
The financial picture also requires some planning. Locum tenens income is typically 1099, meaning you are responsible for self-employment taxes and need to set aside money accordingly. Working with an accountant familiar with physician finances makes a meaningful difference here.
Is 2026 a Good Time to Explore Locum Tenens?
By most measures, yes. Within healthcare staffing, the locum tenens segment remains strong with 4% growth expected in 2026, reflecting sustained reliance on locum physicians and advanced practitioners as organizations work to maintain coverage and sustain service lines amid ongoing workforce constraints. Facilities need coverage, compensation is competitive, and the infrastructure around locum tenens placement including credentialing support, housing assistance, and travel coordination has matured significantly.
Locum tenens has evolved from a temporary fix into a core staffing strategy for health systems and a sustainable career path for clinicians, offering flexibility, autonomy, and meaningful clinical work in a high-demand market.
The Bottom Line
Whether you are a new attending looking to explore different practice settings before committing to a permanent role, a mid-career physician burned out by administrative burden, or an experienced doctor who wants to keep practicing on your own terms, locum tenens in 2026 offers options worth understanding. The demand is real, the compensation is strong, and the stigma that once surrounded locum work has largely dissolved.
MD Preferred connects physicians with locum tenens and permanent opportunities across specialties nationwide. If you are exploring what flexible practice could look like for your career, we can help you find the right fit.