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In This Guide
What is the Real Definition of Locum and How Does It Compare to Traditional
8 min read | Marketplace(/blog/locum-marketplace-vs-agency-understanding-your-options) vs Agency | August 2026
TL;DR: Locum doctors temporarily fill in for permanent staff, providing flexibility and variety. Locum marketplaces offer transparent rates and direct access to shifts, unlike traditional agencies, which often impose higher fees and act as intermediaries. Choosing between the two involves weighing factors such as lifestyle, workload, and management of credentials.
📌Key Facts
Locum Definition: Temporary doctors filling in for absent permanent staff.
Marketplaces vs Agencies: Marketplaces offer direct shift access; agencies act as intermediaries.
Self-Managed Costs: Locums manage their own superannuation and insurance.
Buyout clauses can restrict permanent role options
What is a Locum Doctor and How is the Term Defined?
A locum doctor is a medical professional who temporarily fills in for permanent staff. This role is crucial in ensuring healthcare service continuity, especially during staff shortages or when regular doctors are on leave. In Australia, locum doctors are typically registered with the Australian Health Practitioner Regulation Agency (AHPRA) and must maintain their registration and continuing professional development (CPD) requirements to practice legally (AHPRA).
Locum work provides flexibility and variety, allowing doctors to choose when and where they work. This flexibility makes locuming an attractive option for many practitioners who seek to balance their professional and personal lives. However, locum doctors operate as independent contractors, which means they must manage their own superannuation, tax, and professional indemnity insurance (AHPRA).
How Do Fee Structures Differ Between Locum Marketplaces and Agencies?
Fee structures are a significant consideration when choosing between locum marketplaces and traditional agencies. Traditional agencies often charge hospitals a substantial markup on top of the doctor's pay. This practice means that while a locum shift might be advertised at a high rate, the doctor receives significantly less after the agency's cut. For example, a locum shift in Queensland might see a doctor receiving only a portion of the advertised rate due to agency fees.
In contrast, locum marketplaces like StatDoctor provide more transparency in rates. These platforms allow doctors direct access to available shifts, reducing the gatekeeping often experienced with traditional agencies. This transparency helps doctors make informed decisions about where and when to work, without the uncertainty of hidden costs or fees (StatDoctor).
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Transparency Advantage
Marketplaces offer clearer fees and direct shift access, enhancing decision-making for locum doctors.
How Does Lifestyle Compare for Locum Doctors in Marketplaces vs. Agencies?
The lifestyle of a locum doctor can vary significantly depending on whether they work through a marketplace or an agency. Marketplaces offer the freedom to select shifts that align with personal schedules, providing greater control over work-life balance. This flexibility is a primary motivator for doctors choosing locum work (StatDoctor).
On the other hand, working through an agency might involve more curated shift options. Agencies often select and present shifts to doctors, which can limit the available choices. This approach can be advantageous for doctors who prefer not to manage their own schedules actively but may not suit those seeking maximum flexibility.
ℹInfo
Pro tip: Consider your lifestyle preferences when choosing between marketplaces and agencies. Marketplaces can offer different scheduling options, while agencies typically have set schedules.
What Are the Workload and Flexibility Differences Between Locum Marketplaces and Agencies?
Locum marketplaces and agencies offer different experiences in terms of workload and flexibility. Marketplaces provide direct access to a wide range of shifts, allowing doctors to choose assignments that fit their desired workload. This flexibility can lead to a more balanced and manageable work-life integration (StatDoctor).
In contrast, agencies may impose more restrictions on workload by offering only selected shifts. While this can simplify decision-making for some doctors, it may also result in less control over one's schedule. Additionally, agency-represented shifts may not always materialise as promised, leading to potential gaps in work (StatDoctor).
✓Key Takeaway
Marketplaces offer greater control over workload and scheduling, while agencies may provide more structured but limited options.
How Do Buyout Clauses and Credential Management Compare Between Marketplaces and Agencies?
Buyout clauses and credential management are critical considerations for locum doctors. In traditional agency contracts, buyout clauses can restrict doctors from accepting permanent roles at facilities where they have worked as locums unless a fee is paid to the agency. This can be a significant barrier for doctors considering a transition to a permanent position.
Credential management also differs between marketplaces and agencies. Agencies often handle credentialing on behalf of doctors, but this can come with delays and less transparency. In contrast, locum marketplaces typically streamline the credentialing process, offering doctors more control and direct access to the necessary documentation (StatDoctor).
ℹInfo
Locum doctors must maintain their professional indemnity insurance to keep AHPRA registration, which is managed independently (AHPRA).
Which Should You Choose: Locum Marketplaces or Agencies?
Deciding between locum marketplaces and traditional agencies depends on individual preferences and priorities. If transparency, flexibility, and direct access to shifts are important, a locum marketplace may be the better choice. Marketplaces offer more control over work schedules and fees, providing a clear view of available opportunities.
Conversely, if structured support and less direct involvement in scheduling and credentialing are preferred, an agency might be more suitable. However, it's essential to consider the potential trade-offs, such as higher fees and less flexibility. Ultimately, the decision should align with your professional goals and lifestyle preferences.
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Important Decision
Evaluate your priorities, transparency and flexibility versus structured support, when choosing between marketplaces and agencies.
Frequently Asked Questions
A locum doctor works temporarily to fill in for permanent staff, providing coverage during absences or staff shortages. Permanent doctors have ongoing employment contracts and receive benefits such as [superannuation](/blog/superannuation-for-locum-doctors-in-australia-what-you-actually-need-to-know) and paid leave, which locum doctors must manage independently.
Locum doctors must manage their own superannuation, tax, and professional indemnity insurance, which can be considered hidden costs compared to salaried positions where these are employer-covered expenses ([AHPRA](https://www.ahpra.gov.au/)).
A buyout clause is a contractual term that restricts locum doctors from accepting permanent roles at facilities where they have worked as locums unless a fee is paid to the agency. This clause can limit career opportunities and transitions.
Agencies often manage credentialing on behalf of doctors, which can lead to delays. Marketplaces typically offer more streamlined processes, allowing doctors direct access to and control over their credentials ([StatDoctor](https://statdoctor.app)).
As Reported By
Coverage from news agencies and institutions cited in this article
Dr. Anu Ganugapati is a medical doctor, entrepreneur, and advocate for healthcare innovation. He is the Founder and CEO of StatDoctor, Growth Development Manager at eMedici, and Head of Integrated Health and Education at Health104.
Editorial note·AI-assisted research · Clinically drafted · Medically reviewed
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