Health Care Provider Shortage Minimization Act of 2025
Health Care Provider Shortage Minimization Act of 2025
Plain Language Summary
# Health Care Provider Shortage Minimization Act of 2025 - Summary **What the bill does:** This legislation would officially classify temporary healthcare workers—specifically doctors, dentists, and other medical professionals who fill in for short periods (called "locum tenens")—as independent contractors for federal tax purposes. Currently, these temporary medical workers operate in a legal gray area regarding their tax status. The bill would clarify that they're self-employed, meaning they'd handle their own taxes rather than having employers withhold them. **Who it affects:** Temporary healthcare providers who work short-term assignments (up to one year at a location) would be most directly affected, including physicians, dentists, optometrists, and podiatrists.
The change could also indirectly impact hospitals and healthcare facilities that hire these temporary workers, as well as patients in areas with healthcare shortages that rely on locum tenens staff. Supporters argue it could help address doctor shortages in underserved areas by making it easier for medical professionals to take temporary positions. **Current status:** The bill is currently in committee (HR 1160, introduced by Rep. Buddy Carter, a Republican from Georgia) and has not yet been voted on by the full House or Senate.
CRS Official Summary
Health Care Provider Shortage Minimization Act of 2025This 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).
Latest Action
Referred to the House Committee on Ways and Means.