Would you work for a hospital as an Independent Contractor? - page 2

by btoddrn

5,214 Visits | 16 Comments

If you were able to work for a hospital as an independent contractor and made more money, do you think it would be worth paying your own malpractice insurance, health insurance, self employment taxes (quarterly) and social... Read More


  1. 2
    I've been doing just that since 2004. It is a lot more than $5 difference. Agencies take on average of around 20 to 35 percent of the bill rate. That is yours when you set up your own agency.
    tewdles and lindarn like this.
  2. 1
    I pay for my own malpractice insurance anyway, and encourage every other nurse to do the same; health insurance is a lot more expensive if you're shopping for it as an individual, and there are other benefits provided by many employers that aren't listed above -- e.g., life insurance; dental and/or vision insurance; short- and long-term disability insurance, and some employers still provide some degree of matching funds for retirement savings. The typical nursing compensation "package" is quite a bit more than the actual paychecks we take home. One could always choose to do without the extra insurance, etc., but, if you wanted to be safe and have them, that proposed additional $10-20k/year would get whittled down quite a bit.
    tewdles likes this.
  3. 2
    That 20 to 35% agency margin I quoted is after all direct traveler costs, including health insurance, housing, per diem, and the employer's share of FICA, unemployment compensation, and workers comp. As far as getting your own insurance, with one pre-existing I am paying less than half of what group health would cost. I know that can't work for everyone, however everyone can COBRA existing insurance for 18 months at the exact same cost as the agency (plus 2%). So that margin is truly extra for the independent traveler.

    There is a lot more in the way of benefits - for one, I only am negotiating for one person, me. I don't have to lowball to get the contract and try to squeeze in many more travelers to the same hospital. I usually have the highest bill rate of any agency. When you have a corporation, you can deduct a lot of expenses first dollar - which is far better than itemizing a 1040 as an employee. All my healthcare costs are paid, including mileage to the drugstore for aspirin.

    Running your own business takes a certain mindset that is not for everyone. But there is no doubt that it pays more.
    tewdles and lindarn like this.
  4. 2
    The CRNAs at my hospital are all independent contractors. There are 8 that I know of personally. They consider themselves as a small business, something to do with filing paper work that makes an LLC or something. In any case they have to file for taxes quarterly but they all share the same accountant. In any case the CRNAs get to use a lot of those corporate loop holes and end up making more money than if they were a regular employee.

    I asked about how complicated filing for taxes must be, and they all told me the accountant handles all that. All they do is turn in paperwork. I wouldn't mind having that level of autonomy. The idea of being my own boss has always intrigued me.
    tewdles and lindarn like this.
  5. 0
    Agencies do exactly the same. They offload accounting, payroll, housing, and even recruiting!
  6. 0
    Quote from NedRN
    Agencies do exactly the same. They offload accounting, payroll, housing, and even recruiting!
    What does "offload accounting" mean?
  7. 0
    Hire someone else to do it rather than do it in-house.


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