Starting An Agency - page 7

I'm exploring the possibility of starting an agency. I've worked agency for several years in an urban area with many hospitals (and agencies). I have a pretty good feel for what hospitals are paying... Read More

  1. by   LadyNASDAQ
    Quote from Haywire58
    I'm exploring the possibility of starting an agency. I've worked agency for several years in an urban area with many hospitals (and agencies). I have a pretty good feel for what hospitals are paying agencies for nurses. I am thinking about a small recruitment of 12-20 experienced RNs, most of whom I have worked with and know to be excellent caregivers. And they are motivated to work. I know that I can charge less than any agency in the area, and at the same time pay my nurses more than anyone else, and still make money. My overhead will be very low, as I will run this from an office at home. I'm prepared for long hours and legwork. Certainly there are obstacles, not the least of which relates to payroll. I do not have the cash reserves to buffer against hospital billing cycles which can be anywhere from 2-4 weeks or more. Obviously, I want my nurses getting paid on time.
    Any folks out there running an agency, or experienced in these matters? I'd appreciate any feedback.
    I remember my Dad urging my sis and I to start an agency and me saying NO WAY! The cost is enormous and the leg work is horrendous. To compete with the big biys is laughable because the hospitals want so much from you and so much from the Nurses themselves. It's easy to get into deep financial debt and when you know that if the business fails, it does impact your credit whereas in the past they were separate and apart. Look at the new laws and it will dissuade you from even thinking about it. It also takes months for a hospital to pay their bills and you'll have to have a lot of money to back up your payroll.

    It's a wonderful thought but as for me, I wouldn't touch it. I've been a Nurse for 28 years. My sis and I went to Nursing school together. Both of us wouldn't dream of doing this knowing that if it fails, there goes our personal credit.
  2. by   busnurs
    hi kev97rach

    just wondering if i could ask you a few questions...get some tips from you as i am also intersted in this type of business. please email me when you have time...

    thanks

    Quote from kev97rach
    some of you are saying that it is expensive and need a lot of capital to start your own agency, but let me tell you what we did. i started my agency with $0.00 in the bank. that's right, zero! i was able to get my first contract with the local hospital (it's all about who you know!) if you've worked at a hospital before and got to know the staff and directors, then that's a big plus. i spent $100.00 on a package i received off the internet that came with a book and sample contracts to get me started. once i got my contract, i pulled all the shifts in the beginning that way i got all the money i didn't have to pay any employees. by the way, i'm only an lpn and charged $32.00-$33.00 per hour. just after two weeks, i hired about six more employees and they started pulling shifts. it also works out good because the hospital pays my invoice every two weeks, the same time they do their payroll. so, i pay my employees every two weeks when i get the check from the hospital. i realize not every hospital will do this, but if you can find one that will and get that contract, it really is not expensive to start. also, you can purchase a program like quickbooks for about $200.00 to process your payroll, it's really easy. any questions, please feel free to email me. hope this helps!
    personal e-mail addresses are not permitted to be posted here for your safety.
    Last edit by suzanne4 on Mar 8, '07
  3. by   rtinkam
    SUZANNE4 to help:

    I would appreciate if you can kindly check your PM and reply to my PM.
    Thanks.
    Last edit by rtinkam on Mar 17, '07
  4. by   pedsnurse79
    I have 10years of staffing experience. I can help you out. What areas are you wanting to cover and do you have your workers comp and liability set up?
  5. by   pedsnurse79
    Im a recruiter with 10 years experience, are you looking for staffing lists or a recruiter?
  6. by   Boomer69
    I hope you don't get too discouraged with the financial end of your endeavor. I know there are many start up agencies that found ways to finance their payrolls. Even if you have to rely on factoring companies for awhile. They may take a cut but you can still make a profit until you get more established. Check them out on the web and make some inquiries. Let me know if this helped you. Good Luck and don't give up! I'm in the same situation and I will research until I exhaust every possibility. The market for opportunities in this field are growing and it can only get better.
  7. by   HealthChoice
    I agree, Nurses should take more control. I am in the process of becoming and independent contracted nurse. Its going to be a lot of work but I think I will be happier with the results instead of waiting for someone else to sucure the contract for me. Thier interests lies in getting the contract for themselfs. They are making money on our skills and ther isn't any reason why we can't do this for ourselfs.
    Most hospitals know nothing about the agency thier working with. I think it would be easier to deal with an individual person. We would have more control and so would the hospital. setting up the first few contracts would be difficult but there is always a learning curve, and besides the people who are getting our contracts aren't nurses in the first place and usually have no idea what it is we do.
  8. by   HealthChoice
    I agree, Nurses should take more control. I am in the process of becoming and independent contracted nurse. Its going to be a lot of work but I think I will be happier with the results instead of waiting for someone else to sucure the contract for me. Thier interests lies in getting the contract for themselfs. They are making money on our skills and ther isn't any reason why we can't do this for ourselfs.
    Most hospitals know nothing about the agency thier working with. I think it would be easier to deal with an individual person. We would have more control and so would the hospital. setting up the first few contracts would be difficult but there is always a learning curve, and besides the people who are getting our contracts aren't nurses in the first place and usually have no idea what it is we do.
  9. by   saralee777
    Quote from kev97rach
    Some of you are saying that it is expensive and need a lot of capital to start your own agency, but let me tell you what we did. I started my agency with $0.00 in the bank. That's right, zero! I was able to get my first contract with the local hospital (it's all about who you know!) If you've worked at a hospital before and got to know the staff and directors, then that's a big plus. I spent $100.00 on a package I received off the internet that came with a book and sample contracts to get me started. Once I got my contract, I pulled all the shifts in the beginning that way I got all the money I didn't have to pay any employees. By the way, I'm only an LPN and charged $32.00-$33.00 per hour. Just after two weeks, I hired about six more employees and they started pulling shifts. It also works out good because the hospital pays my invoice every two weeks, the same time they do their payroll. So, I pay my employees every two weeks when I get the check from the hospital. I realize not every hospital will do this, but if you can find one that will and get that contract, it really is not expensive to start. Also, you can purchase a program like Quickbooks for about $200.00 to process your payroll, it's really easy. Any questions, please feel free to email me. Hope this helps!
    anymore info you have would be helpful. We are 2 travel RN's looking to start our own company. How do you go about finding hospitals etc? thanks, sara
  10. by   saralee777
    Quote from WyomingRN
    Both me and my husband are independent contractors. Technically speaking, all agencies are independent contractors. My husband is a construction contractor. I took his 14 years of experience and applied it to nursing and am now a nursing contractor. Like my husband, sometimes I am the only employee of the business. Like my husband, sometimes I hire a few employees when the need arises.

    As a nursing contractor, I work out of my home; as do many independent contractors including my husband. I started off as the only employee and had very little expense. One month, I paid for my yellow page advertising; the next month I paid for insurance for the LLC so that I could hire employees when the need arose. Cost can be spread out as you earn money. My entire start-up expense is paid in full and within my first two months, I recouped the entire cost working no more than 12 days. We printed up our own advertising flyers right here on the computer as we needed them. We designed and printed my business cards right here on the computer. They both look very professional and cost us a fraction of having others do it (and if want to change something, I'm not stuck with hundreds of cards). I now have a contract with two facilities and am negotiating with another.

    Of course you do have the option of borrowing tons of money, renting a fancy office, buying a new computer instead of making due, ordering 500 business cards all at one time, and hiring a professional marketing agent, etc. You can run your start-up costs up as high as you like.

    As to the question of what to charge, we know that there is no one answer. In preparing to go independent, I simply started asking the DON's and staffing personal at various facilities "how bad is agency zyz ripping you off?" I was surprised at the information they were willing to divulge. The love to moan and complain about how bad the facility was being ripped off. The cheapest rate we have found is $65 for an RN for our area. Every facility we have talked to in the last year has made it a point to tell us about all the extras that agencies add above the basic rate for things like a nurse working as "charge", shift differential, housing costs and travel expenses. In our area, the agencies pass everything on to the facility. So there is room to negotiate and maneuver.

    Check out the information on these threads also:
    Independent Nurses providing medical care?
    PRN vs Independent Contract
    Independent Contracting and Protecting Your License
    RN Independent Contractor

    This information helps you out.
    there are 2 of us who are rn's and we specialize in psych. we are looking at starting our own agency or going independent. any info or tips you could give us would be greatly appreciated. thanks, sara and caron
  11. by   saralee777
    Quote from Nightngale
    I still find it amazing, that people who truly "do not know the business" are those who seek out contracts.

    Nurses, can, and do, get their own contracts and benefit from cutting out the middle man in Agency Nursing.
    I am a travel nurse and would love to do this. Can you advise me how to? thanks, sara
  12. by   saralee777
    Quote from HealthChoice
    I agree, Nurses should take more control. I am in the process of becoming and independent contracted nurse. Its going to be a lot of work but I think I will be happier with the results instead of waiting for someone else to sucure the contract for me. Thier interests lies in getting the contract for themselfs. They are making money on our skills and ther isn't any reason why we can't do this for ourselfs.
    Most hospitals know nothing about the agency thier working with. I think it would be easier to deal with an individual person. We would have more control and so would the hospital. setting up the first few contracts would be difficult but there is always a learning curve, and besides the people who are getting our contracts aren't nurses in the first place and usually have no idea what it is we do.
    can you please let me know how you are going about doing this? thanks, sara
  13. by   inursing
    I just started my agency about a month ago and one of the hardest thing is financing the business because client facilities/hospitals would pay 30-60 days after the service has been provided and we have to pay our nurses. Competition sometimes offers to pay the day after. But what I did is to just be slow but sure, I am an RN and my husband too so we kept our full time jobs (to have a steady income to supprt the newly started business) and then pick-up shifts when our client call PRN, also I have my friends (RN's, LPN's & CNA's ) who supported us and left their part time jobs to work for us, i love them.... and right now that we are starting , we really have to focus on the business first until it grows and become stable tso we need to make more sacrifices. We treat our workers as partners by giving incentives (though small ones - to provide more motivation for work) , can be gas cards, gift cards, movie tickets, etc... after certain hours completed and they are so happy about it. It means a lot to us as workers if we are given importance & appreciation and that is what we are trying to do.
    Last edit by inursing on Nov 21, '07

close
Starting An Agency