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To amend the Internal Revenue Code of 1986 to clarify the treatment of locum tenens physicians and advanced care practitioners as independent contractors to help alleviate physician shortages, including in underserved areas.
2/12/2025, 9:01 AM
Summary of Bill HR 1160
The bill recognizes the important role that locum tenens physicians and advanced care practitioners play in providing healthcare services, especially in areas where there is a lack of healthcare professionals. By classifying these individuals as independent contractors, it is hoped that more healthcare providers will be encouraged to work in underserved areas, thereby helping to alleviate the physician shortage crisis.
Overall, Bill 119 HR 1160 seeks to support and incentivize healthcare professionals to work in areas where they are most needed, ultimately improving access to healthcare services for all Americans.
Congressional Summary of HR 1160
Health Care Provider Shortage Minimization Act of 2025
This bill provides statutory authority to classify qualified locum tenens physicians and advanced care practitioners as independent contractors for federal tax purposes. (Locum tenens generally refers to an individual who temporarily fulfills the duties of another individual and is commonly used to refer to temporary staffing in the healthcare industry.)
Under current law, independent contractors are considered self-employed for federal tax purposes and, thus, are required to make quarterly estimated income tax payments and pay self-employment taxes (Social Security and Medicare taxes). (Other federal tax reporting requirements and obligations apply.)
The bill defines a qualified locum tenens physician or advanced care practitioner as an individual who provides temporary services for not more than one continuous year at a site of service as (1) a doctor of medicine, osteopathy, dentistry, optometry, or podiatry (authorized to provide such services by the state, U.S. possession, or U.S. territory in which such services are performed); or (2) a nurse practitioner, physician’s assistant, or certified registered nurse anesthetist. The term also includes an individual who provides such temporary services and is otherwise considered a physician under the Social Security Act (e.g., certain chiropractors).
