Bill Locum Tenens Per CMS Guidelines (2024)

Substitute physicians can contribute to a practice’s revenue stream when modifier Q6 is used properly.

By LuAnn Jenkins, CPC, CPMA, CMRS, CEMC, CFPC

Locum tenens is a Latin phrase that means “(one) holding a place.” In the medical field, locum tenens are contracted physicians who substitute for a physician who has left the practice, or who is temporarily unavailable (e.g., on medical leave, on vacation, etc.). The Centers for Medicare & Medicaid Services (CMS) allows payment for services provided by locum tenens physicians, but you’ll need to follow the guidelines closely.


Identifying Locum Tenens

The locum tenens physician does not have to be enrolled in the Medicare program or be in the same specialty as the physician for whom they are filling in, but this person must have a National Provider Identifier (NPI) and possess an unrestricted license in the state in which he or she is practicing.
A locum tenens physician cannot be used to cover expansion or growth in a practice. Medicare beneficiaries must seek to receive services from the regular physician, and services may not be provided by the interim provider over a continuous period of more than 60 days (with the exception of the temp filling in for a physician who is a member of the armed forces called to active duty).

Note: Check with the state’s Medicaid office and commercial carriers on their policies for locum tenens; some may follow CMS policy, but others may require enrollment.

Billing for Locum Tenens

Locum tenens physicians may not bill Medicare; they should be paid on a per diem or similar fee-for-time basis.

Claims payment is made under the name and billing number of the physician or the practice (in the event the physician has left the practice) that hired the locum tenens physician. If the physician has left the practice, every claim still must have a rendering provider, so the practice would still use his or her name and NPI with modifier Q6 Services furnished by a locum tenens physician appended to the procedure code to indicate the service was furnished by an interim physician.

The practice must keep on file a record of each service furnished by the locum tenens physician, with his or her NPI or Unique Provider Identification Number (UPIN).

Do not bill for services provided by a temp while waiting for a physician to be credentialed with Medicare. (For more information on this, see Michael D. Miscoe’s, JD, CPC, CASCC, CUC, CCPC, CPCO, CHCC, article “Risks Abound for Non-credentialed Physicians Using Incident-to Rule” in the January 2014 issue of Healthcare Business Monthly.) If the physician is hired, the practice should submit the enrollment forms and wait for enrollment to be completed.

Avoid Common Misunderstandings

The locum tenens provision is widely used, but often misunderstood, which puts practices at risk if the guidelines are not followed. A big concern has been incorrect or misunderstood advice from companies placing locum tenens. Many are reputable companies that clearly understand CMS rules, but others may mislead offices to think they can keep these temps long term, or use nurse practitioners as locum tenens.

Section 1842(b) (6) (D) of the Social Security Act clarifies that this is a “physician for physician services” provision. In other words, services provided by non-physician practitioners (e.g., nurse practitioners and physician assistants) may not be billed under the locum tenens provision.

Ultimately, it is the responsibility of the physician or group practice to know and follow the applicable guidelines.

UPDATE: Effective June 23, 2017, CMS changed its locum tenens policy, and expanded it to include physical therapists. To cover both under one policy, CMS has removed the term “locum tenens” and now refers to this as “fee-for-time.”

Modifiers Q5Services provided by a substitute physician under a reciprocal billing arrangementand Q6Services furnished under a locum tenens physiciancontinue to be used, and will be allowed for physical therapists (the descriptors will be updated in a future quarterly update).

CMS also clarified that when a physician or therapist is called or ordered to active duty as a reserve member the Armed Forces for a continuous period of more than 60 days, payment may be made under reciprocal or fee-for-time arrangement for the entire period. Otherwise, the fee-for-time cannot extend past a continuous period of more than 60 days.

Change Request 10090

LuAnn Jenkins, CPC, CPMA, CMRS, CEMC, CFPC, is the president of MedTrust, LLC, a practice management consulting and medical billing firm located in Michigan. She speaks on coding and reimbursem*nt issues for the Michigan State Medical Society, is past president of the Michigan Medical Billers Association, and was named 2006 AAPC Coder of the Year. She is a member of the Grand Rapids, Mich., local chapter.

Reference: Medicare Claims Processing Manual, section 30.2.11

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Bill Locum Tenens Per CMS Guidelines (2024)

FAQs

How do you bill locum tenens according to CMS guidelines? ›

Billing for Locum Tenens

Locum tenens physicians may not bill Medicare; they should be paid on a per diem or similar fee-for-time basis. Claims payment is made under the name and billing number of the physician or the practice (in the event the physician has left the practice) that hired the locum tenens physician.

How long can you bill for a locum? ›

Locum tenens occurs when the substitute physician covers for the regular physician during absences not to exceed a period of 90 continuous days. Reciprocal billing occurs when substitute physicians cover the regular physicians during absences and/or on an on-call basis not to exceed a period of 14 continuous days.

Can you bill for a nurse practitioner locum tenens? ›

The CMS billing guidelines for locum tenens physicians do not apply to nurse practitioners and physician assistants. The directions for billing locum tenens NP and PA services differ from state to state. Contact your local Medicare Administrative Contractor to find out if using modifier Q6 is appropriate.

Can you bill locum tenens while credentialing? ›

Most payers will allow billing for a locum under the regular physician's name and NPI. However, some payers will want to credential the locum physician prior to billing and will require you to bill under the locum name. If the payer has delegated credentialing to you, the timeline for this can be quite short.

How much does CMS reimburse per RVU? ›

2024 Physician Fee Schedule Updates

The 2024 Conversion Factor is $32.74 for each Relative Value Unit, which is a decrease of $1.15 or 3.4% from the 2023 Conversion Factor ($33.89). The annual change to the Conversion Factor generates much of the discussion around decreasing healthcare reimbursem*nt.

What is a locum tenens and reciprocal billing arrangement? ›

Q5 Definition: Services furnished by a substitute physician under a reciprocal billing arrangement. Locum tenens' are substitute physicians who assume professional practices in the absence of a regular physician for reasons such as illness, pregnancy, vacation, or continuing medical education.

How long can locum tenens work? ›

It varies from assignment to assignment, but most locum assignments last between two weeks and two months, depending upon the situation and need. Physicians select the assignment length that suits their interests. In some cases, locum tenens physicians receive permanent offers from their assigned facility.

What modifier to use for locum tenens? ›

The Q6 modifier is important to healthcare because it allows healthcare facilities to identify and bill for locum tenens services.

What is the profit margin for locum tenens? ›

It's estimated that the gross margin achieved by hospitals and facilities that bill for locum tenens primary care provider services ranges from 200%-344%. That greatly exceeds the average loc*ms daily rate paid by a healthcare facility.

What is per diem vs locum tenens? ›

Per diem positions typically offer hourly rates, compensated on a per-shift basis. Meanwhile, locum tenens positions typically offer competitive compensation packages, including a fixed salary or hourly rates, and sometimes additional benefits like housing.

Can you bill locum tenens for a CRNA? ›

This brings up a key point. From time to time, we will have groups ask us about a using a CRNA as a locum. While you can certainly bring in an anesthetist on a temporary contract basis, you would not be able to bill that CRNA's services in the name and NPI of anyone in your group.

What is the difference between Loc*ms Tenens and PRN? ›

Locum work is typically short-term and involves a more substantial commitment of time compared to PRN work, which is characterized by its intermittent and flexible nature.

How long can you bill for locum tenens? ›

Physicians may retain substitute physicians to take over their professional practices when they are absent for reasons such as illness, pregnancy, vacation or continuing medical education. It is not appropriate to bill Fee-For-Service Time Compensation for longer than 60 days.

What is a locum tenens in CMS? ›

The term "locum tenens," which has historically been used in the CMS Internet Only manual to mean fee-for-time compensation arrangements, is being discontinued because the title of section 16006 of the 21st Century Cures Act uses "locum tenens arrangements" to refer to both fee-for-time compensation arrangement ...

How does loc*ms billing work? ›

Planned Duration of Locum Tenens Need > 60 Days

prior to their start date or as soon as possible upon starting. At the end of the Medicare 60-day window, you would then bill under the locum tenens physician NPI number as if they were a permanent physician.

What are the billing guidelines for CMS 99457? ›

To bill 99457, clinical staff must spend a minimum of 20-minutes in a calendar month conducting the monitoring activities. Time spent on patient care must be documented in case of an audit. In addition, the clinical staff must have at least one live or synchronous, two-way, interactive call with the patient.

What is the billing guideline for CMS G0378? ›

Report HCPCS code G0378 (hospital observation service, per hour) under the appropriate revenue code (0762) with units that represent the hours in observation care (rounded to the nearest hour). Observation service code G0378 will only be considered for reimbursem*nt when the observation period meets or exceeds 8 hours.

How do I bill modifier Q6? ›

You submit claims the same way you would for your primary physician except you add a Q6 modifier in box 24d after the procedure code. You may need to check with your billing program provider to ensure that this area of 1500 is populating correctly.

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