Federal Healthcare Career Paths: Contracts vs. Other Employment

Choosing between a contract or permanent position is a decision many face at some point in their careers. If you’re at that crossroads right now, you’re not alone. The important thing to know is that both options come with their perks and challenges, and the right choice depends on what fits your goals, lifestyle, and career stage. In this guide, we’ll break down the pros and cons of each path to help you decide what’s best for you. 

What is the Difference Between a Contract Job and a Permanent Job? 

First, let’s start with a definition of what these roles mean. A contract position is temporary—you’re hired for a set amount of time, often through a staffing agency or a government contractor. These jobs can last anywhere from a few months to a few years. On the other hand, a permanent or full-time position means the federal government directly employs you with no end date in sight. It’s more stable and often comes with long-term perks. 

Now that we’ve cleared that up, let’s dive into what makes each worth considering. 

Why Choose a Contract Position? 

Contract positions are great if you like variety and flexibility. They’re a little like testing the waters—whether that’s trying out different specialties, working in new locations, or just seeing what fits your style. Here’s a breakdown of the key advantages: 

Better Pay 

One of the biggest reasons people choose contract positions is the paycheck. Contract positions often pay more than permanent work because you’re not getting the same benefits package. Some even include extra perks like housing stipends or travel reimbursements, which can add up if you work away from home. 

According to a recent survey, 67% of healthcare workers said they would consider temporary healthcare roles precisely because of the opportunity for higher wages and more frequent pay.¹ This setup can be particularly appealing if you’re looking to save up quickly—whether it’s to pay off loans, fund travel, or build an emergency fund. 

Flexibility and Freedom 

Contract work offers unmatched flexibility, allowing you to design your career around your life rather than vice versa. Do you want to explore a new city every year? Or maybe you’d like to take a break between assignments to travel or focus on personal goals? Contract roles allow you to create a schedule that works for you. 

Diverse Career Paths 

If you’re not 100% sure about your long-term career goals, contract roles let you dip your toes in different specialties without committing. With each new contract, you can work in various healthcare settings—rural clinics, large hospitals, or specialty units—with diverse patient populations. This exposure keeps your work engaging and helps you build a broad and versatile skill set. 

Why Choose a Permanent Position? 

On the flip side, full-time roles are ideal if you’re looking for stability and a long-term career path. These positions come with different benefits that can make life easier and more predictable. 

Job Security and Stability 

There’s no denying the peace of mind that comes with being a full-time employee. You don’t have to worry about what happens when a contract ends because your position is secure. That stability can be very valuable if you support a family or plan for your future. 

Career Growth 

Full-time jobs offer plenty of opportunities to grow if you’re in it for the long haul. The federal system supports professional development through leadership training, certifications, or even tuition reimbursement for further education. Plus, staying in one organization long-term can open doors to promotions and leadership roles. 

How to Choose Between Being a Contract Worker and a Permanent Employee? 

It’s not always an easy decision, but here are some things to think about to help you decide: 

1. How Do You Like to Work? 

Do you enjoy variety, or do you prefer routine and structure? The way you like to work plays a big role in deciding between a contract or permanent position. 

Permanent roles in government healthcare often come with a set schedule and structured work environment, making it easier to plan around your personal life. These roles also tend to have a better patient-to-provider ratio, which can reduce stress and prevent burnout. If you thrive in a stable setting where you can build long-term relationships with colleagues and patients, a permanent position may be the right fit. 

On the other hand, contract roles offer more flexibility and variety, which appeals to those who like to “spice things up”. While some assume contract jobs are always short-term, many contracts actually last months or even years, giving you a level of stability without the long-term commitment of a permanent role.  

Contract work also provides more opportunities to gain new skills and experience in different healthcare settings, helping you avoid falling into a repetitive routine. If you prefer having more control over your career progression and the freedom to explore different roles, contract work might be a better fit. 

2. What Stage Are You at in Your Career? 

If you’re early in your career, contract work might be an excellent way to gain experience, explore specialties, and build a strong resume. For seasoned professionals, a full-time job could provide the stability and leadership opportunities you seek. Of course, there’s no rule—you can pivot at any point. 

3. How Important Is Work-Life Balance? 

Contract work can allow you to take extended breaks between assignments, which is a big plus if you value downtime or personal projects. Full-time work, on the other hand, offers more predictable schedules and leave policies, which can be better for those juggling family responsibilities. 

4. Are You Open to Relocating? 

If you’re not tied to a specific location, contract positions offer the chance to explore different parts of the country—or even the world. It’s a great way to broaden your horizons. But full-time employment might be a better fit if you’re settled in one place. 

Common Concerns About Making the Switch 

It’s okay to have doubts. Here are some common concerns and answers to help clarify them. 

Would It Be Difficult to Transition to a Permanent Role Later? 

Not at all. In fact, contract work can make you a stronger candidate for full-time roles. The diverse experience you gain through different assignments can give you a competitive edge when applying for long-term positions. 

What If I Want Both Stability and Variety? 

You don’t have to choose one path forever. Many federal healthcare workers switch between different roles throughout their careers. For example, you might take on contract work for a few years to explore other areas and then transition to a permanent position when you’re ready for more stability. 

A good example of this is Marida Etherington.² Etherington is a nurse with a background in acute-care mental health. During the pandemic, she decided to create opportunities for herself by transitioning from hospital work to providing online therapy for frontline workers. She started by volunteering, and from there, she expanded her practice to include psychotherapy for clients and coaching services for nurses exploring their career changes.  

Final Thoughts: Trust Yourself 

Choosing between a contract or a permanent position is a deeply personal decision. Both paths have advantages; the right choice depends on your unique circumstances. Take the time to reflect on what matters most to you—financial flexibility, job security, career growth, or work-life balance. 

Talk to colleagues or mentors who’ve been in your shoes, and don’t hesitate to ask recruiters for more details about what each role offers. Most importantly, trust yourself. Whether you choose the variety of contract work or the stability of a permanent position, you’re making a valuable contribution to federal healthcare—and that’s something to be proud of. 

Read more: Advancing Your Career in Federal Healthcare Through Mentorship and Networking Connections 

Get expert guidance from Matrix Providers to improve your job search. 

You don’t have to navigate this journey alone. At Matrix Providers, we specialize in connecting healthcare professionals like you with opportunities that match your goals, preferences, and lifestyle. Whether you’re drawn to the flexibility of a contract position or the stability of permanent employment, we offer a wide range of positions and will support you every step of the way. 

Start by exploring the opportunities on our career page and apply to the ones that align with your goals. We're here to listen and provide guidance if you’d like to discuss your concerns or specific job preferences first. Connect with us today by filling out this short form—we’re here to help you find your perfect fit. 

References 

1. “2025 U.S. Healthcare Staffing Report” Everee, 2025, 8588609.fs1.hubspotusercontent-na1.net/hubfs/8588609/2025HealthcareStaffingReportvF.pdf. 

2. Kutscher, Beth. “Nurses have more career options than perhaps ever before. Here are the top Jobs on the Rise” LinkedIn, 20 Jan. 2022, www.linkedin.com/pulse/nurses-have-more-career-options-than-perhaps-ever-before-kutscher?utm_source=share&utm_medium=member_ios&utm_campaign=share_via.