Did Travel Nurse Agencies kill the field?

msmx3 · Mar 7, 2009

I tend to agree.....before I became a traveler, I always heard travel nurses refer to recruiters as "used car salesmen"...I thought "surely not!" But I have seen firsthand the funny math, phonecall screening/dodging, ripping off, etc. I guess it's the nature of the beast- the hospital pays the agency a set amount for each hour a nurse works, and as much of that money they can keep for themselves instead of giving to the nurse, the better. I can only hope that they would at least treat the facilities with more respect, but Im sure the greediness isnt only directed to the nurses doing all the work.

Luckily I have found recruiters from a few companies that have been good to me and treated me fairly. Thats the key!! Ive been with Access Nurses now for over 2 years and have been happy for the most part...athough they claim "they do not give completion/renewal bonuses", but Im sure my recruiter is probably getting a bonus every time I renew or complete a contract! Things that make you go hmmmm......

eriksoln, BSN, RN · Mar 8, 2009

Yes, you are right about the bonuses. No wonder they are so nice to you. An experienced traveler once told me: "If not contract completion bonus is offered, they are keeping it. Every contract has one. If they dont at least offer a small bonus, go to another agency."

I never investigated how true it is, but I've had a completion bonus every contract, except when I renewed once.

DavidinAustin · Mar 13, 2009

As someone who has been reading these boards for years, I've never found it necessary to respond to a posting before this. Erik, you're so incorrect...excuse me, misinformed, that I hardly know where to begin, but I will do my best.

"...They make more off a contract than you do and don't do a thing for it". Oh really? An agency makes that much off of each contract? Let's do the math, shall we? If an agency is billing a hospital $60/hr, you are probably being paid $30/hr. The remaining $30/hr goes towards your housing, your insurance, your travel, your licensing, your drug testing, your mileage...and we haven't even gotten to agency overhead to pay for the office, the phones, their insurance, compliance, jhaco accrediation, liability, etc etc. How much do you think is really left over?

"If no contract completion bonus is offered, they are keeping it". What a joke!! Hospitals almost NEVER offer completion bonuses, the travel nurse agency does!! And you're paying for it!! The bonus just comes from money that could have gone into your hourly pay, just withheld then paid as a completion bonus. Hospitals NEVER offer it. Well, I take that back, they sometimes do and if it is withheld from you, it was worked into your hourly pay to make sure you got what you wanted.

Profit margin on a typical assignment for a travel nurse is somewhere between 15-25%, and most of that goes to overhead. Again if you have been paid a completion bonus, it was in lieu of a higher hourly rate. I can guarantee you this.

Again, LOL at the absurd notion that an agency is making more off you than you are.

amy0123, BSN, RN · Mar 13, 2009

David- How would you know? :saint:

DavidinAustin · Mar 13, 2009

because common sense dictates

eriksoln, BSN, RN · Mar 15, 2009

OK then. Explain why, I as the well informed and more....assertive traveler........often have my sign on and the exact same hourly wage as my coworker travel nurses (same company). Did they get scammed of the higher hourly wage AND the sign on? People often are amazed that I have an apartment with washer/dryer, king size bed, and move at least 7 days prior to begining the assignment (not 2). I demand these things, my recruiters know not to offer me a contract if those things arent available. Yet, I talk to newer travelers and........same wage, no sign on, were told they couldnt get any additions to their housing (king size bed etc).

I know a number of experienced travel nurses who drilled it into my head that they had gone years without a sign on bonus...........and they made the same hourly wage as I and everyone else who didnt have one.

15-25% profit, for the company. I dont buy it. I'd need to see figures.....real data, not speculation.

Ivygal36 · Mar 15, 2009

I am an independant nurse contractor. Which means I've cut out the middle man (the agency). I am my own agency. I know what the hospitals are paying agencies for nurses. By the time I pay my own housing, health insurance, travel exp, etc...well, I definately agree with DavidinAustin. The agencies aren't making that much money off us. Of course, it depends on the agency also. They would like to make as much money off you as possible and will if you let them.

loricatus · Mar 15, 2009

There are other forums and websites that explain your topic further; and, this is where I got the info I am about to post.

The average billable hour for a nurse traveler that is not a rapid response, runs between $55.00-$70.00 (depending on the specialty, the region, and the hospital). Each agency negotiates a billable rate and whether or not a completion bonus will be included. The average gross profit margin is between 25-35%. Net profit is another story and is based mostly upon the overhead expenses, operating costs and salaries-this is why it seems to be more profitable for a traveler to use a smaller agency (less operating, overhead and internal salary costs).

What I have been hearing is that hospitals have been cutting back on their traveler needs and many agencies are cutting the billable hour rate to get a client. That in turn will lower the rate offered to the traveler, or reduce the perks (housing, travel reimbursements, etc). Whatever an agency offers comes out of the billable rate received. You get nothing free from any agency since there is only one pie to cut the pieces from. Yes, some are getting greedy, in that they do not want to reduce their net profit while they expect a traveler to work for less pay-but, with the way the economy is now, they will be the first to close shop.

You can choose to go IC; but be prepared to cover your own insurance and pay quarterly taxes (including the other part of SS), negotiate contracts and wait at least one month for your check after you have billed the hospital.

eriksoln, BSN, RN · Mar 15, 2009

25-35% is very different from 15-25%. His max is your min. My company is one of those who expected the traveler to take the loss completely. Hence, they lose myself and my wife, two salaries. Truth is, I doubt we would've stayed with them without the paycut, much less with it.

Do you have links to these sites? I'd like to investigate further, see if David is as far off as I think or not.

I'll add too that, David disagreed with my figures, but had nothing to say about my assertion that Travel Agencies ruined a good thing. I know how petty they were with me, thought nothing of using dirty tactics to make me responsible for whatever they could, never kept their word on a lot of things. I think these practices were with the hospitals as well as with the nurses, hence the joy over the field of travel nursing becoming almost extinct. I dont want to deal with them any more, why would hospitals think differently?

bagladyrn, RN · Mar 16, 2009

Question for you to think about: Assuming you have negotiated a payrate and benefits (housing, etc.) that you are satisfied with (otherwise why would you take the contract) why does it matter how much more the company is making from your contract? My thought is that if they are able to make a good margin off my services it makes me a more valuable commodity and they are going to do what they can to keep me happy and employed. Seems to be working for me so far - 12 yrs steadily employed with the same company at rates, etc. that are satisfactory to me.

eriksoln, BSN, RN · Mar 16, 2009

I dont mind them making money too. My concern is/was (since I am done travel nursing) is if they went too far with things (as they often did with me) and force the hospitals hand in getting rid of travel nurses? I've never seen anyone write anything good about the company I was with. That may have been my problem. I dont doubt they nickle/dimed hospitals into a rage.