Whether you’re finishing residency, looking for a career reset, or just ready for a change, the choice between locum tenens and a permanent position is one of the most important decisions you’ll make as a healthcare provider.

Both options offer unique advantages — and potential trade-offs. Your personal goals, specialty, and lifestyle preferences will shape the best path for you. Here's a breakdown of how they compare across the categories that matter most.

1. Flexibility

Locum Tenens: Ultimate freedom. You choose when, where, and how often you work. Want a month off between assignments? No problem. Want to try rural Texas and then shift to coastal California? You can.

Permanent: Predictable hours, but limited flexibility. Vacation and time off must be approved. Schedules are often rigid, especially in hospital-based roles.

2. Compensation

Locum Tenens: Typically offers higher hourly/daily rates than permanent roles, particularly in underserved areas or urgent needs. Travel and housing are usually covered, and you may qualify for tax benefits as an independent contractor.

Permanent: May offer signing bonuses, production incentives, and long-term financial stability. Total comp can be high over time — especially if equity or partnership is involved.

3. Job Security & Benefits

Locum Tenens: No long-term contract, which means less job security but more autonomy. You’ll need to arrange your own retirement planning and often your own health insurance (unless the agency provides options).

Permanent: Comes with benefits like health insurance, paid time off, CME stipends, malpractice with tail, and sometimes retirement matching. If benefits are a priority, a full-time position might offer more structure.

4. Career Growth

Locum Tenens: Ideal for building diverse experience and clinical agility. You’ll work in a variety of settings, meet different teams, and adapt quickly. Great for those who thrive on change and learning.

Permanent: Better suited for providers who want to climb administrative ladders, take on leadership roles, or build long-term patient relationships.

5. Work-Life Balance

Locum Tenens: You control your calendar. Want 6 months off per year to travel? Want to work weekends only? You can make it happen. It's especially attractive for parents, travelers, and those seeking less burnout.

Permanent: More stability, but fewer options to customize your work schedule. Burnout risk may be higher in demanding roles without proper support.

6. Licensing & Credentialing

Locum Tenens: You’ll likely need licenses in multiple states. Fortunately, the Interstate Medical Licensure Compact (IMLC) simplifies this process in over 30 participating states. Your agency will also help with credentialing, which must be completed for each new facility.

Permanent: Only one license needed. Credentialing is required once during onboarding and re-credentialing every few years.

7. Ideal For...

• Locum Tenens: New graduates, semi-retired physicians, providers who value flexibility and travel, those seeking higher short-term income, or clinicians exploring different practice settings.
• Permanent: Providers who want to build deep patient relationships, take on leadership roles, settle in a community, or access strong employee benefits.

Conclusion

Locum tenens and permanent jobs both offer rewarding career paths — but they serve different goals. Locums gives you control, mobility, and high earning potential with lower commitment. Permanent roles offer stability, long-term growth, and comprehensive benefits. The best choice is the one that aligns with your personal and professional priorities — and that may evolve over time.