H.R.1160 - Health Care Provider Shortage Minimization Act of 2025 (119th Congress)
Summary
H.R.1160, the Health Care Provider Shortage Minimization Act of 2025, aims to address physician shortages, particularly in underserved areas, by clarifying the tax treatment of locum tenens physicians and advanced care practitioners. The bill amends the Internal Revenue Code of 1986 to classify these professionals as independent contractors rather than employees. This reclassification affects how they are taxed and treated under employment laws.
Expected Effects
The primary effect of this bill would be to change the employment status of locum tenens physicians and advanced care practitioners for tax purposes. This could lead to more flexible staffing arrangements for healthcare facilities, especially in underserved areas. It may also impact the benefits and tax obligations of the healthcare professionals involved.
Potential Benefits
- Increased Healthcare Access: By reducing administrative burdens and clarifying employment status, the bill may encourage more physicians and advanced practitioners to work as locum tenens, filling gaps in healthcare coverage, especially in underserved areas.
- Greater Flexibility for Healthcare Professionals: Independent contractor status provides more autonomy and flexibility in choosing assignments and managing their careers.
- Reduced Administrative Burden for Healthcare Facilities: Facilities may find it easier to hire temporary staff without the complexities of traditional employment.
- Potential Cost Savings: Healthcare facilities might experience cost savings due to reduced employer-related expenses (e.g., payroll taxes, benefits).
- Encourages staffing in underserved areas: The bill specifically targets underserved areas, which may incentivize practitioners to work in these locations.
Potential Disadvantages
- Loss of Employee Benefits: Reclassifying healthcare professionals as independent contractors could result in a loss of employer-provided benefits such as health insurance, retirement plans, and paid time off.
- Increased Tax Burden on Individuals: Independent contractors are responsible for paying self-employment taxes, which can be higher than employee payroll taxes.
- Potential for Exploitation: Without employer protections, locum tenens physicians and advanced practitioners may be vulnerable to unfair contract terms or payment practices.
- Reduced Healthcare Facility Oversight: Facilities may have less direct control over independent contractors compared to employees, potentially affecting quality control.
- Possible decrease in care quality: Due to the temporary nature of the position, the care provider may not be as invested in the long term health outcomes of the patients.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily through the implied power of Congress to regulate taxation and interstate commerce (Article I, Section 8). By amending the Internal Revenue Code, the bill exercises Congress's power to lay and collect taxes. The bill does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).