Vendor Management News

From Stopgap to Strategy: How Locum Tenens Staffing Is Powering Revenue Stability in 2025

Written by Ringo | 12/18/25 6:21 PM

As healthcare systems continue to navigate tightening margins, workforce shortages, and rising patient demand, locum tenens is no longer a reactive stopgap — it’s increasingly a strategic lever for sustaining access, protecting revenue, and enhancing operational performance. For executives focused on both financial health and clinical continuity, integrating locum tenens into workforce strategy is now table stakes — not an afterthought.

Why Locum Tenens Matters in Today’s Market

One of the most pressing challenges facing U.S. healthcare leaders is the growing physician shortage. According to the Association of American Medical Colleges, the U.S. is projected to face a shortfall of up to 86,000 physicians by 2036, driven by retirements, heavy workloads, and limited residency capacity.

Locum tenens staffing assignments — temporary placements of physicians and advanced practice providers — fill crucial gaps when permanent staff departures, leaves, or recruitment delays threaten access and revenue. Nearly 82% of healthcare facilities are now relying on locum tenens providers to bridge workforce gaps, especially in rural and underserved areas [Locumpedia].

This isn’t just anecdotal. A recent industry report found that locum tenens usage jumped 25% as hospitals and health systems leaned into temporary providers to counter staffing shortfalls — and that unfilled clinician roles can cost an organization upwards of $2.6 million in annual revenue per vacancy [Business Wire].

These figures underline a fundamental truth for executive decision-makers: the financial stakes of workforce gaps extend well beyond staffing costs — they can directly erode service line viability and margins.

Reframing Locum Tenens from Cost to Strategic Asset

Forward-thinking health systems aren’t treating locum staffing as a short-term patch; they’re using it as a core component of workforce strategy that protects patient access, enhances financial performance, and supports full-time staff sustainability. Here’s how:

1. Protecting Access and Revenue
Temporary clinicians ensure that high-demand service lines remain staffed and productive, especially during recruitment gaps or peak patient volumes. Instead of losing revenue from cancelled appointments or deferred surgeries, organizations with strategic locum programs maintain capacity and continuity.

“My experience using Ringo for locums healthcare staffing has been fantastic. The platform is user-friendly and efficient, making the staffing process seamless.”Marc Naya, Epic Physician Staffing

 

This kind of operational reliability directly feeds into financial predictability — an imperative for CFOs and system presidents.

2. Reducing Administrative Burden and Errors
A major hidden cost in locum staffing is administrative friction: manual credentialing, timesheet errors, dispersed vendor communication, and slow billing cycles can all erode margins. Digitizing these processes frees teams to focus on strategy rather than paperwork.

“Entering timesheets in Ringo is easy and transparent. I have clear visibility into all the rates and hours for the providers. This feature mitigates errors and alerts me to any potential discrepancies.” Christine Thomson, Nationwide Anesthesia Services, Inc.

 

This level of clarity doesn’t just save hours — it reduces costly mistakes and strengthens financial controls.

3. Enabling Forecasting and Workforce Agility
Healthcare workforce needs are fluid — seasonal trends, epidemic waves, and specialist shortages can emerge unpredictably. Locum tenens programs, when tied to data and analytics, allow leaders to forecast demand, model spend, and pre-position talent before gaps become crises.

“Ringo delivers consistency and transparency. My recruiters love the visibility — they always know where the candidate is during the entire process.”Jamie Trainor, Howard Sloan Search

 

Visibility into deployment status and performance allows hospital leaders to make proactive decisions about workforce optimization.

How Ringo Helps Leaders Transform Locum Strategy

Optimizing a locum program requires more than spreadsheets and siloed communications — it requires a centralized, vendor-neutral system of record that drives visibility, compliance, and strategic execution. That’s where Ringo’s platform redefines temporary staffing:

  • Centralized visibility: Real-time dashboards and reporting provide insights into hours, costs, performance, and deployment efficiency.
  • Compliance automation: Credentialing and onboarding workflows reduce risk and accelerate time-to-productivity.
  • Vendor-neutral management: Equitable access to agency partners ensures competitive pricing without preferential bias.
  • Scalable insights: Data-driven forecasting helps leaders align workforce supply with patient demand.

“Ringo has improved our workflow and level of service with temporary agencies … increasing our efficiencies and keeping our costs down.”JCCA

 

This kind of strategic alignment — between clinical staffing requirements and financial performance — is what separates high-performing systems from reactive ones.

Actionable Steps for Healthcare Executives

If your organization still treats locum tenens tactically, here are key steps to transform it into a strategic asset:

  1. Audit your locum deployment and financial impact — move beyond fill rate to revenue contribution.
  2. Integrate locum data into workforce planning — align temporary staffing with long-term demand forecasts.
  3. Invest in automation and visibility tools — reduce manual processes and strengthen controls.
  4. Choose a vendor-neutral partner that supports transparent pricing and equitable access.

Conclusion

In 2025 and beyond, locum tenens will continue to play a pivotal role in helping hospitals and healthcare systems adapt to workforce volatility and financial pressures. Rather than reacting to shortfalls, organizations that embed locum strategy into their workforce planning — supported by transparent, data-driven technology like Ringo — will protect revenue, maintain access, and achieve greater workforce resilience.

Ready to see how Ringo can transform your locum tenens and contingent workforce strategy?
Schedule a demo to discover how a vendor-neutral VMS gives you clarity, control, and confidence across staffing, compliance, and spend.