Health Care Provider Shortage Minimization Act of 2025
Summary
HB1160, titled the Health Care Provider Shortage Minimization Act of 2025, would amend the Internal Revenue Code to create a specific federal tax treatment for locum tenens physicians and certain advanced care practitioners. Under the bill, qualifying temporary providers would not be treated as employees for purposes of the tax code, and the entities or agencies that contract with them, as well as payors, would not be treated as employers for those services. The bill is aimed at making it easier for health care systems to use temporary clinicians to fill staffing gaps, especially in underserved areas.
The bill defines a qualifying locum tenens physician or advanced care practitioner as someone providing temporary services for no more than one continuous year at a site of service, working under a written contract that states the individual is not an employee for those services. It includes physicians and certain other licensed practitioners, and specifically defines advanced care practitioners to include nurse practitioners, physician assistants, and certified registered nurse anesthetists. The changes would apply prospectively to wages for services performed after enactment.
Impact
If enacted, HB1160 would add a new section to chapter 25 of the Internal Revenue Code and clarify that qualifying locum tenens medical professionals are treated as independent contractors rather than employees for federal tax purposes. This would affect payroll tax and related employer-employee obligations for hospitals, clinics, staffing agencies, and payors that use temporary physicians and advanced care practitioners. The bill would not broadly change licensure or labor law, but it would create a targeted federal tax rule for a defined category of temporary health care workers.
Sentiment
The available context suggests generally favorable intent, with the bill framed as a workforce and access-to-care measure to help address physician shortages. There are no recorded committee transcripts or votes in the provided material, so there is no evidence of formal opposition or support beyond the bill’s introduction and referral. The sponsor list and the bill’s title indicate a bipartisan or at least cross-member effort to improve staffing flexibility in health care delivery.
Contention
The main policy issue is the classification of locum tenens physicians and advanced care practitioners as independent contractors rather than employees for tax purposes. Supporters are likely to view this as a practical way to expand access to care and reduce administrative barriers to temporary staffing, while potential critics could be concerned about narrowing employee protections, creating tax classification exceptions, or affecting payroll tax compliance. Another possible point of debate is the scope of the definition, including which practitioners qualify and the one-year limit on temporary service.