If you're a healthcare administrator, HR leader, or hiring manager trying to fill open clinical roles, you've likely encountered two options: permanent placement and contract staffing. Both have their place in a modern healthcare workforce strategy, but understanding the difference is critical to making the right decision for your organization, your budget, and your patients.
At Search Station, we specialize in both types of placements for healthcare organizations across the United States. In this guide, we'll break down how each model works, when to use it, and what to watch out for.
What Is Permanent Placement in Healthcare?
Permanent placement, sometimes called direct hire, is when a staffing agency recruits a candidate who becomes a full-time, permanent employee of your organization. The agency handles sourcing, screening, and vetting, then presents qualified candidates for you to interview and hire.
Once the candidate accepts your offer, they're on your payroll. The staffing agency typically charges a one-time placement fee, usually a percentage of the candidate's first-year salary.
Best for:
Filling core clinical roles you need long-term
Physician, APP, and nursing leadership positions
Organizations prioritizing cultural fit and retention
Building a stable, committed workforce
What Is Contract Staffing in Healthcare?
Contract staffing, now commonly referred to as contingent staffing, locum tenens, and per diem work, involves placing a healthcare professional with your organization for a defined period, often 13 weeks for travel nurses or a few months for locum physicians.
The professional remains an employee of the staffing agency, which handles payroll, benefits, and malpractice coverage.
You pay the agency a higher hourly or daily bill rate, but you avoid the overhead of benefits and onboarding a permanent employee.
Best for:
Covering sudden staffing gaps or seasonal surges
Filling roles while conducting a permanent search
Testing a candidate before committing to a permanent hire
Short-term, project-based clinical needs
Key Differences at a Glance
Permanent placement costs more upfront (placement fee) but saves money long-term through retention and reduced turnover. Contract staffing has higher ongoing costs but gives you flexibility.
Permanent hires are invested in your culture and mission; contract staff may rotate through multiple facilities.
The best healthcare organizations use both models strategically: permanent placement for core staff, contract coverage for gaps and surges.
Which Model Is Right for Your Organization?
Ask yourself these questions:
Is this a role you'll need indefinitely?
Do you need someone who will grow into leadership?
Is cultural alignment a priority?
If you answered yes to most of these, permanent placement is likely the better fit.
On the other hand, if you have a sudden vacancy, a seasonal uptick in patient volume, or a budget that doesn't support a new full-time employee right now, contract staffing buys you the coverage you need while you plan.
How Search Station Can Help
Search Station is a Fort Worth, Texas-based search firm specializing in temporary (contract), permanent, and executive search for healthcare organizations nationwide. We place caring physicians, advanced practice providers, nurses, and allied health professionals with a people-first approach that prioritizes cultural fit, not just credentials.
Whether you're filling a single critical role or building out an entire department, our team brings the experience, expertise, and network to make it happen.
Ready to start your temporary or permanent placement search? Contact Search Station at +1 (214) 884-8461 or visit searchstation.org/search-talents to tell us about your open role.