Official Summaries

Health Care Provider Shortage Minimization Act of 2025

This 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).

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1160 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1160

To amend the Internal Revenue Code of 1986 to clarify the treatment of 
locum tenens physicians and advanced care practitioners as independent 
    contractors to help alleviate physician shortages, including in 
                           underserved areas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2025

 Mr. Carter of Georgia (for himself, Mr. Dunn of Florida, Ms. Tenney, 
 Mr. Crenshaw, and Mr. Weber of Texas) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify the treatment of 
locum tenens physicians and advanced care practitioners as independent 
    contractors to help alleviate physician shortages, including in 
                           underserved areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Care Provider Shortage 
Minimization Act of 2025''.

SEC. 2. TREATMENT OF LOCUM TENENS PHYSICIANS AND ADVANCED CARE 
              PRACTITIONERS.

    (a) In General.--Chapter 25 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section:

``SEC. 3513. TREATMENT OF LOCUM TENENS PHYSICIANS AND ADVANCED CARE 
              PRACTITIONERS.

    ``(a) General Rule.--For the purposes of the taxes and other 
obligations imposed by this title, in the case of services performed as 
a qualified locum tenens physician or advanced care practitioner--
            ``(1) the individual performing such services shall not be 
        treated as an employee,
            ``(2) neither the persons for whom such services are 
        performed, nor any agency that contracts with a qualified locum 
        tenens physician or advanced care practitioner, shall be 
        treated as an employer,
            ``(3) any payor shall not be treated as an employer, and
            ``(4) the remuneration paid or received for such service 
        shall not be treated as paid or received with respect to 
        employment.
    ``(b) Qualified Locum Tenens Physician or Advanced Care 
Practitioner.--For purposes of this section--
            ``(1) In general.--The term `qualified locum tenens 
        physician or advanced care practitioner' means an individual 
        if--
                    ``(A) such individual provides temporary physician 
                or advanced care practitioner services as a locum 
                tenens physician or locum tenens advanced care 
                practitioner for a period of not more than one 
                continuous year at a site of service,
                    ``(B) such individual is--
                            ``(i) a doctor of medicine, osteopathy, 
                        dental surgery, or dental medicine legally 
                        authorized to practice medicine, surgery or 
                        dentistry in the State, territory, or 
                        possession in which the individual performs 
                        such services,
                            ``(ii) a doctor of podiatric medicine or 
                        doctor of optometry legally authorized to 
                        perform podiatric or optometry functions in the 
                        State, territory, or possession in which the 
                        individual performs such services,
                            ``(iii) a physician, as defined in section 
                        1861(r) of the Social Security Act Section (42 
                        U.S.C. 1395x(r)) or section 8101(2) of title 5, 
                        United States Code, or
                            ``(iv) an advanced care practitioner, and
                    ``(C) the services described in subparagraph (A) 
                performed by the individual are performed pursuant to a 
                written contract and such contract provides that the 
                individual will not be treated as an employee with 
                respect to such services for purposes of this subtitle.
            ``(2) Advanced care practitioner.--The term `advanced care 
        practitioner' means a nurse practitioner, physician's 
        assistant, or certified registered nurse anesthetist.''.
    (b) Clerical Amendment.--The table of sections of chapter 25 of 
such Code is amended by adding at the end the following new item:

``Sec. 3513. Treatment of locum tenens physicians and advanced care 
                            practitioners.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to wages for services performed after the date of the enactment 
of this Act.
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