Is There an Oversupply of Locum Tenens Physicians in 2026?

Supply, Demand, & Pay of Locum Tenens Physicians in 2026

The U.S. healthcare system is evolving, and so is the role of locum tenens physicians. Once seen as a temporary or “between jobs” option, locum tenens (Latin for “to hold the place of”) has become a major force in healthcare workforce planning. As a physician recruiting firm that interviews hundreds of new physician job seekers per week, it feels like there are more physicians looking for locum assignments than there are locum openings.

Is There an Oversupply of Locum Tenens Physicians?

This comprehensive guide explores whether there’s an oversupply of physicians available for locum work, which specialties need them most, how much they earn compared to permanent physicians, and whether the use of locums has grown over the past 5–10 years.

What Is a Locum Tenens Physician?

A locum tenens physician is a doctor who works on a temporary contract basis, filling in for permanent physicians on leave, covering staffing gaps, or supporting clinics that can’t yet hire permanent staff. Assignments can range from a few days to several months, and locums work in hospitals, private practices, urgent care centers, rural clinics, and more.  Typically, locum tenans staffing companies mark up their billable hourly rate to the medical group by 30-50% above the rate they pay the physician. 

Is There an Oversupply of Physicians Looking for Locum Tenens Work?

Short answer: Not exactly.

While the number of physicians exploring locum tenens roles is increasing, the healthcare system overall faces a physician shortage, not a surplus. According to recent industry data from ZipDo:

• 68% of U.S. hospitals report difficulty filling permanent physician positions.
• The U.S. is projected to face a shortage of 122,000 physicians by 2030 due to rising demand and aging demographics.

At the same time, many physicians are opting for locum tenens work for lifestyle reasons, including flexibility, travel opportunities, and better control over schedules. One survey found that more than 63% of physicians are already working in or considering locum tenens roles within the next five years.

Hospitals Tightened Locum Tenens Budgets

Compared to 2020–2022, Locum Tenen Budgets are changing:

• CFOs are scrutinizing locum spend heavily
• Systems are pushing internal coverage models
• Many groups are trying to convert locums to permanent
• PE-backed groups are cutting staffing costs

So demand has not grown at the same pace as physician interest in a locum tenens opportunity.

That creates a temporary imbalance.

So while more physicians are engaging in locum work, this isn’t because the market is saturated; it’s driven by physician preference and growing demand for temporary coverage in underserved regions and high-burnout specialties.

Why More Physicians Are Considering Locum Tenens Work

Several factors are contributing to the rise of locum tenens popularity:

1. Physician Burnout & Work-Life Balance: Many doctors seek locum roles to reduce burnout by controlling their schedules and reducing administrative burdens.
2. Retirement Wave: A significant portion of the physician workforce is approaching retirement age, creating openings that hospitals struggle to fill permanently.
3. Lifestyle Flexibility: Locum physicians can choose assignments that fit their desired pace, location, and duration.
4. Enhanced Compensation Options: Locum tenens physician salaries are typically more competitive than permanent work salaries, especially when travel and housing stipends are factored in.

Looking Ahead at Locum Tenens Physicians Trends

Looking ahead, locum tenens will likely play an even larger role as physician shortages, burnout, and patient demand continue to be issues. The physicians who thrive will be the ones who use locum work intentionally, choosing assignments that align with their values, lifestyle, and long‑term career goals rather than taking whatever comes along.

If you’re exploring locum tenens jobs or considering a change from your current role, our team at NOW Healthcare Recruiting can help you sort through the noise, understand real‑world pay and demand, and match you with opportunities that fit your priorities instead of forcing you into a one‑size‑fits‑all job. Connect with us to talk confidentially about your options and see what the 2026 locum market really looks like from a recruiter’s seat.