Overview
Title
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.
ELI5 AI
The bill wants to make sure that doctors who temporarily fill in at hospitals and special advanced care workers are seen as independent helpers and not employees, hoping this helps get more doctors to places that need them. It also says these workers must have an agreement saying they aren't employees, which may help keep things fair and organized.
Summary AI
H.R. 1160 aims to change the tax code to treat locum tenens physicians and advanced care practitioners as independent contractors. This change is meant to help address doctor shortages, especially in underserved areas, by clarifying that these healthcare professionals are not employees for tax purposes. The bill defines criteria for who qualifies as a locum tenens physician or advanced care practitioner and ensures they are not considered employees if they work under a contract that specifies this status. The changes would apply to wages for services performed after the bill becomes law.
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AnalysisAI
General Summary
The proposed legislation, titled the "Health Care Provider Shortage Minimization Act of 2025," aims to amend the Internal Revenue Code of 1986. The primary objective is to address healthcare provider shortages by categorizing locum tenens physicians and advanced care practitioners, who provide temporary medical services, as independent contractors rather than employees for tax purposes. The bill specifies the qualifications necessary for these roles and outlines that their work must be covered by a contract stating they will not be treated as employees.
Summary of Significant Issues
Several issues arise from the provisions of this bill. One concern is the lack of clarity in defining the duration allowed for services rendered by locum tenens, specified as "not more than one continuous year." This vagueness could lead to legal challenges and confusion about when a locum tenens service transitions to regular employment.
Additionally, the provision stipulating that neither the persons nor agencies employing these professionals be classified as employers could cause uncertainty in liability, especially in cases of malpractice or misconduct. The bill's exclusion of tax and employment obligations might incite misuse, permitting entities to classify their regular employees as locum tenens to evade taxes.
Furthermore, the narrow definition of "advanced care practitioner" potentially leaves out other critical healthcare roles, posing a barrier to inclusivity. The requirement for a contract declaring the individual will not be treated as an employee might create loopholes for organizations to avoid providing worker protections. The technical jargon throughout the bill may also hinder comprehension among individuals unfamiliar with legal or healthcare fields.
Impact on the Public Broadly
For the general public, this legislation has the potential to improve access to healthcare services, particularly in underserved areas. By simplifying the tax obligations for temporary healthcare providers, the bill may encourage more professionals to take on locum tenens roles, thus addressing provider shortages. However, the ambiguous terms and potential for misuse might reduce state and federal tax revenues, impacting public services.
Impact on Specific Stakeholders
Healthcare Workers
Healthcare professionals working as locum tenens could benefit from the bill's classification, potentially making the roles more financially attractive. However, they might lose conventional employee benefits, such as healthcare coverage and retirement plans.
Healthcare Institutions
Hospitals and clinics, especially those in rural and underserved areas, might find it easier to recruit temporary staff, thus mitigating shortages and improving patient care. Yet, the classification shift might introduce complications in liability management and worker obligations.
Government and Regulatory Bodies
While seeking to promote healthcare access, the bill might inadvertently reduce tax revenues if entities exploit the classification for tax avoidance. This necessitates careful monitoring and potential regulatory adjustments.
The General Workforce
In the broader context, this approach to contractor classification could influence labor policies, challenging the boundaries of employment versus independent contracting, and setting precedents that affect various industries beyond healthcare.
The bill's goals to enhance healthcare delivery address crucial gaps, yet care must be taken to address the issues and ambiguities that could arise from its implementation.
Issues
The lack of clear criteria for defining 'a period of not more than one continuous year' for locum tenens service duration could lead to legal challenges and ambiguity in enforcement (Section 2).
The provision that neither the persons nor agencies for whom services are performed shall be treated as employers could create confusion regarding liability and responsibility in cases of medical malpractice or professional misconduct (Section 2, SEC. 3513(a)(2)).
The exclusion of tax and employment obligations might lead to misuse, where regular employment is misclassified as locum tenens work to avoid taxes, potentially reducing revenue for government bodies (Section 2, SEC. 3513(a)(4)).
The definition of 'advanced care practitioner' might be too narrow, potentially excluding other similar roles not explicitly named, such as clinical nurse specialists and emerging healthcare roles (Section 2, SEC. 3513(b)(2)).
The requirement for a contract stating that the individual will not be treated as an employee could create loopholes for organizations to avoid tax liabilities and reduce protections for workers (Section 2, SEC. 3513(b)(1)(C)).
The technical language used in the bill may not be easily understood by non-experts, potentially leading to misunderstanding or misinterpretation of the provisions (General issue with Section 2).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section states that the law may be referred to as the "Health Care Provider Shortage Minimization Act of 2025."
2. Treatment of locum tenens physicians and advanced care practitioners Read Opens in new tab
Summary AI
The section amends the Internal Revenue Code to specify that locum tenens physicians and advanced care practitioners, such as doctors, nurse practitioners, and physician’s assistants providing temporary services, are not classified as employees. It clarifies that payments to them should not be regarded as wages from employment and applies to services after the law's enactment.
3513. Treatment of locum tenens physicians and advanced care practitioners Read Opens in new tab
Summary AI
The section explains that locum tenens physicians and advanced care practitioners are not considered employees for tax purposes when they provide temporary services for up to one year. It defines who qualifies as a locum tenens physician or advanced care practitioner and specifies that their work must be under a contract that states they will not be treated as employees.