As the healthcare landscape evolves, more and more physicians are stepping outside traditional employment models and choosing to work as independent contractors (1099 physician). Whether you’re exploring locum tenens, telemedicine, or flexible part-time roles, working independently can offer freedom, higher earning potential, and better work-life balance.
But with that freedom comes new responsibilities—especially when it comes to taxes, liability, and contracts. If you’re a physician considering the leap into independent work, this guide is for you.
What is a 1099 Independent Contractor Physician?
Unlike W-2 employed physicians who receive a salary and benefits through a hospital or health system, 1099 independent contractors are self-employed. That means:
- You bill for your services as an individual or through a business entity
- You’re responsible for your own taxes (income, self-employment, etc.)
- You choose your assignments and negotiate your own contracts
- You provide your own benefits, including health insurance, retirement savings, and malpractice insurance (unless otherwise offered)
Many 1099 physicians work through locum tenens staffing firms or agencies like Docs Who Care, providing flexible coverage in rural and community hospitals that need temporary support.
Benefits of Working as an Independent Contractor
✅ Higher Pay Rates: Since employers aren’t covering benefits or overhead, 1099 roles often pay more per hour or per shift.
✅ Freedom to Choose Assignments: Take control of your schedule and work where and when you want.
✅ Tax Deductions: As a business owner, you can deduct expenses such as travel, licensing, CME, medical equipment, and more.
✅ Work-Life Balance: Build a practice around your life—not the other way around.
✅ Professional Autonomy: Focus on patient care without the politics of hospital employment.
Considerations Before Going 1099
Being your own boss comes with added responsibility. Here are key things to think through:
1. Understand the Tax Implications
- You’ll receive a 1099 form instead of a W-2.
- You’re responsible for quarterly estimated taxes and self-employment tax.
- Consider working with a CPA who understands healthcare contracting.
2. Form a Legal Business Entity
Many physicians choose to operate under:
- Sole Proprietorship
- LLC (Limited Liability Company)
- S-Corp (for potential tax savings)
Each has pros and cons. Consult a legal or financial advisor to choose what’s right for your situation.
3. Secure Malpractice Insurance
Some agencies or hospitals may provide coverage, but often, you’re responsible for purchasing and maintaining your own policy.
At Docs Who Care, we offer malpractice insurance for our independent contractor providers, making it easier to step into assignments with peace of mind.
4. Review Every Contract Carefully
As a 1099 physician, you should:
- Negotiate rates and terms
- Clarify responsibilities and schedule
- Confirm liability coverage and cancellation clauses
Always read the fine print—and never be afraid to ask questions before you sign.
5. Track Your Income and Expenses
You’ll need to:
- Keep organized records of every dollar earned and spent
- Set aside money for taxes (usually 25–35%)
- Use tools like QuickBooks, FreshBooks, or a simple spreadsheet system
This is where working with a financial advisor or tax professional can save you serious time and money.
What Types of Assignments Can 1099 Physicians Take?
Some of the most common roles for independent contractors include:
- Locum Tenens Work (short- or long-term hospital assignments)
- Urgent Care or Emergency Department Coverage
- Telehealth Services
- Consulting or Advisory Roles
- Weekend or Holiday Shift Coverage in rural hospitals
Docs Who Care offers independent contractor physicians the opportunity to serve in rural communities, support faith-aligned healthcare missions, and enjoy flexible, meaningful work with support from our experienced team.
Why Docs Who Care?
We’ve supported independent physicians for nearly 30 years. As a partner, we help you:
- Find assignments that fit your schedule and calling
- Handle logistics, credentialing, and scheduling
- Offer malpractice coverage or refer you to a trusted broker
- Support your autonomy while reducing your administrative load
Whether you’re looking to supplement your income or make 1099 work your full-time path, we’re here to make the transition simple, ethical, and rewarding.
Final Thoughts: Is Independent Contracting Right for You?
If you’re looking for:
- More control over your time
- The ability to serve where you’re needed most
- Better financial outcomes and autonomy
- A meaningful alternative to burnout culture
Then becoming a 1099 physician might be your next best step.
Let’s Talk About Your Future
Docs Who Care is here to help you navigate the world of independent practice with confidence and clarity.
👉 Contact Us to learn more about 1099 opportunities with Docs Who Care
