Introduction: Supplemental Income in a Shifting Healthcare Economy
For years, locum tenens work has been the default option for physicians seeking additional income. The appeal is clear: high hourly pay, flexible scheduling, and opportunities to work in a variety of clinical settings. But in 2026, the landscape is changing. Physician burnout is at an all-time high, travel-dependent work has lost much of its appeal, and many doctors are reconsidering whether locums is still the most sustainable choice.
Meanwhile, clinical precepting—teaching medical students in the clinic—has quietly become one of the most rewarding and strategically valuable side income streams for physicians. Although precepting may not offer the same immediate pay as locums, it delivers a combination of financial incentives, emotional fulfillment, professional development, and burnout reduction that locums simply cannot match.
This article breaks down the realistic financial comparisons, state-level incentives, wellness benefits, and long-term advantages that make precepting a superior choice for many physicians in 2026.
The Financial Reality: Locums Pays More per Hour, but Less Over Time
Locum tenens compensation remains strong in 2026, with physicians typically earning between 150 and 300 dollars per hour depending on specialty, location, and contract (CHG Healthcare, 2024). On paper, this makes locums appear to be the higher-earning side option. But the headline rate is only part of the truth.
Locums income is often reduced by
- travel and lodging expenses
- inconsistent scheduling
- unpaid onboarding time
- gaps between assignments
- licensing and credentialing fees
- fatigue associated with constant transitions
When accounting for these factors, the true effective hourly rate of locums work is almost always lower than the advertised rate.
Precepting, on the other hand, integrates into a physician’s existing practice, meaning there is no lost productivity, no travel, and no downtime between work periods.
Precepting Creates Predictable, Sustainable Supplemental Income
While preceptors are not typically paid directly by schools, nearly every state now offers meaningful incentives for teaching medical students. These include tax credits, CME reimbursements, stipends, and grants.
Examples in 2026 include
- Georgia: up to 8,500 dollars per year in tax credits
- Hawaii: 5,000 dollars per year
- Colorado: rural incentives of 5,000 to 10,000 dollars
- Virginia: tuition support and preceptor stipend programs
- Many states: CME credits for every student supervised
A physician who precepts 4 to 8 students per year can generate an effective financial value of 6,000 to 20,000 dollars annually when combining tax incentives, CME value, and institutional support. Unlike locums, this income does not require leaving one’s primary practice or sacrificing nights and weekends.
Even more importantly, precepting income is stable. Physicians know exactly how many students they will take, how incentives apply, and how it fits into their existing schedule—with no surprises.
Burnout Prevention: The Benefit Locums Cannot Offer
Burnout is one of the defining issues in medicine, with Medscape’s 2024 data showing that nearly half of physicians report symptoms of emotional exhaustion. While locums can offer temporary relief from administrative burdens, it often introduces new stressors, including travel fatigue, unfamiliar environments, and lack of continuity.
Precepting, by contrast, consistently correlates with
- increased meaning and purpose in work
- improved professional satisfaction
- greater connection to the next generation of physicians
- strengthened sense of mastery and confidence
Research from the AMA and AAMC shows that teaching physicians report higher professional fulfillment and lower emotional exhaustion compared to non-teaching peers. Similarly, studies on resilience interventions show reductions in burnout symptoms by 20 to 40 percent depending on program design (West et al., JAMA 2016).
Teaching is not a cure-all, but it provides something locums cannot: purpose-driven work that enhances rather than drains emotional energy.
Precepting Strengthens Clinical Skills and Professional Identity
While locums often involves repetitive short-term clinical work, precepting challenges physicians to articulate their thinking, stay current, and maintain a strong professional identity. Benefits include
- deeper mastery of clinical decision-making
- improved communication skills
- better diagnostic clarity through teaching reflection
- staying updated on guidelines and standards
- increased confidence through mentorship
- enhanced leadership development
Many physicians report that precepting makes them better clinicians, not just better teachers. Locums rarely offers these kinds of long-term professional rewards.
Precepting Enhances Career Growth and Professional Reputation
Precepting builds strong, lasting relationships with medical schools and academic institutions. These connections frequently lead to
- faculty appointments
- academic titles
- opportunities for speaking, research, and leadership
- enhanced credibility with patients
- recognition within the medical community
In contrast, locums physicians are often disconnected from continuity of care and seldom build long-term professional relationships at the same pace.
A physician who precepts consistently for several years can develop a recognizable professional presence in the regional medical education community—an asset that translates into career security, leadership opportunities, and additional revenue streams such as consulting or academic stipends.
Financial Incentives That Make Precepting Even More Appealing
Apart from tax credits, precepting carries additional indirect financial advantages.
These include
- CME credits worth 1,000 to 3,000 dollars annually
- enhanced recruitment for private practices
- access to early-career physician talent
- reduced burnout-related productivity loss
- improving practice reputation and patient trust
Importantly, precepting hours are often valued for maintenance of certification and quality metrics, which can contribute to bonuses and value-based reimbursement programs.
When these benefits are factored in, the effective financial value of precepting can rival or exceed supplemental locums work for many physicians—without the workload strain.
Precepting Supports Physician Wellness and Long-Term Career Sustainability
One of the most overlooked aspects of precepting is how strongly it supports long-term wellness. Physicians who teach report
- increased gratitude and empathy
- improved team morale
- greater engagement with their patients
- renewed enthusiasm for medicine
- stronger sense of community
Teaching grounds physicians in the purpose behind their work. For many, it rekindles the passion that led them into medicine in the first place.
Locums may offer high pay, but it rarely builds emotional or professional momentum that supports a sustainable career.
The Bottom Line: Precepting Is the More Balanced Side Income Stream for 2026
Locum tenens remains a viable and often lucrative option for physicians who want short bursts of high hourly income. But in 2026, physicians increasingly seek side work that is financially worthwhile, emotionally sustainable, professionally meaningful, and compatible with work-life balance.
Clinical precepting checks all those boxes. It provides
- consistent annual value
- tax credits and CME benefits
- reduced burnout
- strengthened clinical ability
- professional identity and leadership opportunities
- better continuity, better lifestyle, and better long-term impact
For physicians looking for supplemental income without burning out, precepting offers the most balanced and rewarding path forward.
About FindARotation
FindARotation connects medical students with high-quality clinical experiences while supporting the preceptors who shape the next generation of physicians. Our platform empowers clinicians, students, and institutions with resources that strengthen education and enhance professional well-being.
Explore more at FindARotation.com
Burnout, Wellness, Teaching Benefits
- AMA. “Creating the Medical School of the Future: AMA Accelerating Change in Medical Education Consortium.” 2023–2024.
- AMA. “2024 National Burnout Benchmarking Report.”
- AAMC. “Physician Specialty Data Report.” 2024.
- West CP, Dyrbye LN, Shanafelt TD. “Interventions to Prevent and Reduce Physician Burnout: A Systematic Review.” JAMA. 2016;316(22):2383–2396.
- AAMC. “Medical School Faculty Teaching and Professional Satisfaction Survey.” 2024.
Locums & Workforce Trends
- CHG Healthcare. “2024 Locum Tenens Market Report.”
- Bureau of Labor Statistics. “Physicians and Surgeons: Occupational Outlook.” 2024.
- Staff Care / AMN Healthcare. “2024 Review of Temporary Physician Staffing Trends.”
Preceptor Incentives, CME, Tax Credits
- Georgia Department of Community Health. “Preceptor Tax Incentive Program.” 2024.
- Hawaii Department of Health. “Hawaii Preceptor Tax Credit.” 2024.
- Colorado Rural Provider Program. “Colorado Rural Preceptor Tax Incentives.” 2024.
- AAFP. “State Preceptor Tax Incentives and CME Programs.” 2024–2025.
- ACCME. “CME Credit Systems and Valuation.” 2024.
General Physician Workforce & Fulfillment
- Medscape. “Physician Lifestyle & Happiness Report 2024.”
- Medscape. “Physician Compensation Report 2024.”
- National Academy of Medicine (NAM). “Clinician Well-Being Knowledge Hub.” 2024.
