Top 10 Questions and Answers about Locum Tenens Billing and Reimbursem*nt (2024)

Locum tenens, or reciprocal billing arrangements, present challenges when it comes to billing and reimbursem*nt. We have compiled a list of the top 10 questions and answers to help clarify this process. Read on to gain a comprehensive understanding of the guidelines and requirements for accurate coding and billing in locum tenens scenarios.

Q1: What does locum tenens mean, and how does it impact billing and reimbursem*nt?
A1: The Latin phrase “locum tenens” refers to the practice of hiring substitute physicians to fill in for regular physicians during their absence. It allows the regular physician to bill and receive payment for the substitute physician's services as if they provided the care themselves.

Q2: When should modifier -Q5 be used in locum tenens billing?
A2: Modifier -Q5 should be used when locum tenens physicians have their own practice.

Q3: When should modifier -Q6 be used in locum tenens billing?
A3: Modifier -Q6 should be used when a locum tenens physician does not have a separate practice.

Q4: Do locum tenens physicians bill Medicare directly?
A4: Locum tenens physicians do not directly bill Medicare. Payment for Medicare-covered services is made in the name and billing number of the medical group that employed the locum tenens physician.

Q5: Can post-operative visits be billed separately in locum tenens arrangements?
A5: No. Post-operative visits should not be billed separately since the medical group has already received the global fee for the procedure.

Q6: Are newly hired physicians without credentials considered locum tenens?
A6: No. Newly hired physicians who are not yet credentialed do not fall under the locum tenens category. Patients should be scheduled with physicians within the practice who are credentialed with their insurance, and billing should be conducted using their own National Provider Identifier (NPI).

Q7: Do the billing requirements differ for non-Medicare payers in locum tenens arrangements?
A7: Yes. The billing requirements may vary for non-Medicare payers. It is important to verify whether they recognize locum tenens arrangements and if any payer specific paperwork or in-network status is required.

Q8: How should I bill for a locum tenens physician providing services in a temporary capacity?
A8: Utilize the appropriate modifier (-Q5 or -Q6) based on whether the locum tenens physician has their own practice or not, and ensure the billing is done through the employing medical group.

Q9: How long may a locum tenens substitute for a physician?
A9: According to Medicare, locum tenens physicians are used in temporary situations of no more than 60 days where the practice physician cannot see patients. The time frame may also be unique to the payer, so verify with each payer.

Q10: Are there specific guidelines for billing when a practice hires a locum tenens physician for an extended period?
A10: Yes. If a locum tenens physician is employed for an extended period, special considerations may apply. It is advisable to consult payer policies to ensure compliance with their guidelines.

Examples

Here are five case examples to help illustrate how these questions and answers apply to real-life situations.
1. Retina specialist Dr. Johnson is on vacation for two weeks and arranges for Dr. Smith, a locum tenens physician without a practice, to provide eye care services to Dr. Johnson’s patients at the practice during that time.
Billing Modifier: Use -Q6 because the service was furnished by a substitute physician under a reciprocal billing arrangement.

2. Dr. Singh, a comprehensive ophthalmologist, hires a new associate, Dr. Patel, who has not yet been credentialed with insurance payers. Dr. Patel sees patients at the practice while going through the credentialing process.
Billing Modifier: Since Dr. Patel is not a locum tenens physician and is a new associate, do not use either of the locum tenens modifiers. The billing should be done under Dr. Patel's own NPI and once the credentialing process is complete.

3. Dr. Garcia is on maternity leave for three months. Dr. Rodriguez, a physician who works part time with another local practice, is hired to cover her patient load during her absence.
Billing Modifier: Use -Q5 since the service was furnished by a substitute physician under a reciprocal billing arrangement with the practice.

4. Dr. Lee needs to attend a medical conference for four days. Dr. White is contracted to provide eye care services at Dr. Lee's clinic during that period. Dr. White sold a practice and was getting ready to retire.
Billing Modifier: Use -Q5 because the service furnished by a substitute physician without a separate practice under a reciprocal billing arrangement.

5. Dr. Nguyen, a pediatric ophthalmologist, hires Dr. Wang, a newly graduated and credentialed pediatric ophthalmologist without a separate practice on a long-term basis to establish his own practice within Dr. Mitchell's clinic.
Billing Modifier: In this scenario, Dr. Wang is not acting as a substitute or temporary physician, but rather establishing his own practice within the clinic. Do not use either of the locum tenens modifiers since it would not be appropriate. Dr. Wang should bill under his own NPI as a separate practicing physician.

Navigating the intricacies of locum tenens billing and reimbursem*nt is essential for accurate and compliant coding and billing practices. Always refer to payer policies and guidelines for specific information and ensure compliance with the appropriate modifiers and documentation requirements to streamline the billing and reimbursem*nt process.

    Top 10 Questions and Answers about Locum Tenens Billing and Reimbursem*nt (2024)

    FAQs

    What is the modifier for locum tenens billing? ›

    The Q6 modifier is a procedure code modifier used on medical claims for the billing of services for a locum tenens physician.

    How does loc*ms billing work? ›

    The regular physician bills and receives payment for the substitute physician's services as though he or she performed them. Services should be reported with modifier Q6, and the time period cannot exceed 60 days.

    What is the highest paid locum tenens specialty? ›

    Neurological surgery

    While rates have not increased significantly since 2022, a persistent shortage of neurosurgeons still makes this one of the top-paying locum tenens specialties. Neurosurgeons can earn between $300 – $400 per hour, with rates as high as $5000 per day when meeting the needs of stroke patients.

    How long can you bill 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.

    What is the 52 modifier for reimbursem*nt? ›

    Modifier -52 is used to indicate partial reduction or discontinuation of radiology procedures and other services that do not require anesthesia. The modifier provides a means for reporting reduced services without disturbing the identification of the basic service.

    How to code for locum tenens? ›

    As illustrated below, Medicare requires claims for services provided by a locum tenens physician to include the Q6 modifier, which designates services were performed by a locum tenens physician, in box 24D of the CMS-1500 form. The regular physician's provider identification number goes in box 24J.

    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.

    Do locum tenens need to be credentialed? ›

    The answer is yes. State and federal laws require hospitals to have a process in place to screen all applicants and assess their professional abilities. That's why physicians, physician assistants, and nurse practitioners must undergo a thorough credentialing process prior to taking on a locum tenens assignment.

    What is the Q5 modifier used for? ›

    Services furnished by a substitute physician under a reciprocal billing arrangement. On an occasional reciprocal basis, a patient's regular physician will arrange for a substitute physician to provide visit/services, including emergency visits or related services.

    What are the trends in locum tenens? ›

    Locum tenens industry trends

    Healthcare organizations continue to increase their use of locum tenens physicians. Nearly half (46%) increased loc*ms usage in 2022 compared to the prior year, while 20% stayed about the same. Only 29% reported decreased usage.

    What does locum stand for? ›

    The concept was named after the Latin phrase locum tenens, which means to hold a place. “Locum” definition: A locum, or locum tenens, is a person who stands temporarily for someone in the same profession, usually in reference to physicians or clergy.

    What is per diem vs locum tenens? ›

    Per diem offers more day-to-day flexibility, as professionals can choose shifts that fit their schedules. Locum tenens provides flexibility over longer periods, allowing for extended breaks between assignments.

    What is the modifier for locum billing? ›

    How Do You Code For a Locum Tenens Physician? There are two critical steps associated with using the Q6 modifier, in order to properly note that another physician is filling in for the regular physician: Add the Q6 modifier in box 24 D after the CPT/HCPCS code.

    What are the cons of locum? ›

    Loc*ms are paid by the hour, so your income may fluctuate depending on how many shifts you work each month. You may need to organise your own tax payments which can be extra work. There may also be times when there is less work available in your preferred region or department.

    What is modifier 26 in medical billing? ›

    • Modifier 26 is appended when a physician provides the professional component only of the global fee. and when the physician prepares a written interpretation and report. • Modifier 26 should only be appended to codes which are listed in the CMS NPFSRVF as modifier 26. appropriate.

    What is the difference between Q5 and Q6 modifier? ›

    It's important to understand that these modifiers are not interchangeable. These modifiers recently had their descriptions changed to clarify some of the problems previously associated with them. Use Q5 when there is a reciprocal billing arrangement and use Q6 when there is a fee-for-time compensation arrangement.

    What is a 74 modifier used for? ›

    Use modifier 74 for discontinued outpatient hospital/ambulatory surgical center (ASC) procedure after administration of anesthesia. This modifier is not for physician use. It is only appropriate for the ASC. For physician reporting of discontinued procedures, refer to modifier 53.

    What is the difference between 58 and 79 modifier? ›

    Modifiers 58 and 78 are always for procedures related to another procedure. With modifier 79, it doesn't matter whether the procedure was planned or unplanned during the previous procedure, because there's no connection between the different operations.

    What is the 52 and 73 modifier? ›

    Modifier 73 and modifier 74 are for facility use only and are used to report discontinued outpatient hospital/ASC procedures. Modifier 52 is used to indicate partial reduction, cancellation, or discontinuation of services and may be used for facility charges when anesthesia is not planned.

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