The Real Cost of Locum Agencies

Locum agencies dominate the locum doctor market in Australia, but their fees and contracts often increase costs for hospitals and reduce pay for doctors. Hidden markups and restrictive agreements affect staffing, especially in rural and regional areas.

1. Hidden Markups

Many locum agencies charge hospitals 10 to 30% on top of the doctor’s pay. Hospitals end up paying significantly more, while doctors receive less than advertised.

For example, in Queensland, hospitals may post a 7-day locum shift at $3,000 per day, totalling $21,000. After agency fees, the doctor may receive:

• 15 percent cut → $17,850
  
  
• 20 percent cut → $16,800
  
  
• 25 percent cut → $15,750
  
  

StatDoctor takes a different approach. We charge a flat rate of $99 per shift, or nothing if the hospital is on an annual subscription. This ensures doctors receive more of the pay offered, and hospitals save money.

2. Restrictive Contracts

Another issue is restrictive agency contracts, which can limit the availability of locum doctors. Many agencies include a buy-out clause or other restrictive agreements, which can prevent doctors from taking shifts elsewhere.

This is especially problematic in rural and regional areas, where the permanent workforce has declined sharply. Hospitals rely heavily on locums to maintain rosters, but agency restrictions can make it harder for doctors to work flexibly and for hospitals to fill gaps efficiently.

3. The StatDoctor Advantage

StatDoctor removes unnecessary barriers. Doctors can connect directly with hospitals, avoiding agency cuts and restrictive clauses. Hospitals benefit from transparent pricing, simpler rostering, and more reliable coverage, while doctors retain flexibility and fair pay.

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