The Real Cost of Locum Agencies
[5 min read | Marketplace vs Agency | May 2026]
TL;DR: Locum agencies in Australia often impose high fees and restrictive contracts, increasing costs for hospitals and reducing pay for doctors. Hidden markups can significantly affect the earnings of locum doctors, particularly in rural areas. Direct-to-hospital platforms like StatDoctor offer a transparent alternative, saving money for both parties. ABC News
- Locum agencies charge hospitals 10 to 30% above doctors' pay.
- Restrictive contracts can limit locum doctors' availability.
- Direct-to-hospital platforms can reduce costs and increase flexibility.
Sources: 2 cited below ↓
How do hidden markups affect locum doctors?
Locum agencies in Australia often charge hospitals a substantial markup, typically ranging from 10 to 30% on top of the doctor's pay. This practice means hospitals end up paying significantly more than the advertised rate, while doctors receive less. For instance, a locum shift in Queensland advertised at A$3,000 per day might see the doctor receiving only A$2,550 after a 15% agency cut.
These markups can have a significant impact on both hospitals and doctors. Hospitals face inflated staffing costs, which can strain budgets, especially in regional areas where reliance on locums is high. Doctors, on the other hand, may find their earnings reduced, affecting their willingness to take on locum work through agencies.
StatDoctor offers a different approach by charging a flat rate of A$99 per shift, or nothing if the hospital subscribes annually. This model ensures doctors receive a larger portion of the pay, and hospitals benefit from reduced costs.
A$15,750/day
is the potential doctor pay after a 25% agency cut on a A$3,000/day shift, ABC News (2026)
What are the issues with restrictive contracts?
Restrictive contracts are another significant issue with locum agencies. Many agencies include clauses that limit a doctor's ability to take shifts elsewhere, such as buy-out clauses. These restrictions can be particularly problematic in rural and regional areas where the permanent medical workforce has declined.
Hospitals in these areas rely heavily on locums to fill staffing gaps. However, agency-imposed restrictions can make it difficult for doctors to work flexibly, and for hospitals to efficiently fill their rosters. This can lead to staffing shortages and increased pressure on existing medical staff.
StatDoctor eliminates these barriers by allowing doctors to connect directly with hospitals. This approach provides more flexibility for doctors and ensures hospitals can maintain reliable coverage without the constraints of restrictive contracts.
💡Smart Tip
Consider direct-to-hospital platforms to avoid agency restrictions and improve earnings.
What does this mean for locum doctors in Queensland?
For locum doctors in Queensland, the presence of agency markups and restrictive contracts can significantly impact their work and earnings. Queensland's healthcare system, particularly in rural and regional areas, relies heavily on locum doctors to maintain service levels. However, the costs associated with agency fees can deter doctors from taking on locum roles.
By using direct-to-hospital platforms like StatDoctor, locum doctors in Queensland can bypass these agency fees and restrictions. This approach not only increases their take-home pay but also provides greater flexibility in choosing shifts and locations.
Hospitals in Queensland can also benefit from reduced staffing costs and improved roster management. By eliminating agency fees, hospitals can allocate more resources to patient care and other critical areas.
Direct-to-hospital platforms offer a cost-effective and flexible alternative for locum work in Queensland.
