Health Care Provider Shortage Minimization Act of 2025
The Health Care Provider Shortage Minimization Act of 2025 would amend the Internal Revenue Code to explicitly classify certain temporary healthcare providers as independent contractors for tax purposes. Specifically, it creates a new rule (Section 3513) for qualified locum tenens physicians and advanced care practitioners who perform temporary services at a site under a written contract for up to one year. Under this rule, the individual would not be treated as an employee, and the site, contracting agency, or payor would not be treated as an employer with respect to these services; the compensation for the services would not be treated as employment income. The bill targets improving staffing in underserved areas by making it easier for hospitals and clinics to hire temporary providers without triggering employment-related tax obligations. In short, the bill is designed to facilitate flexible, temporary physician and advanced care practitioner coverage by clarifying their tax status as independent contractors, thereby potentially expanding access to care in shortage areas.
Key Points
- 1Establishes a new tax rule: Section 3513, Treatment of Locum Tenens Physicians and Advanced Care Practitioners, to designate certain temporary providers as non-employees for tax purposes.
- 2Qualified locum tenens defined: An individual who provides temporary physician or advanced care practitioner services for up to one continuous year at a site, is licensed in the relevant field, and works under a written contract stating they will not be treated as an employee for purposes of this subtitle.
- 3Definitions included: Advanced care practitioner means a nurse practitioner, physician’s assistant, or certified registered nurse anesthetist.
- 4Scope of non-employer status: The entity where services are performed, any contracting agency, and any payor are not treated as employers; remuneration for the services is not treated as employment income.
- 5Effective date: Applies to wages for services performed after the date of enactment.