Starting An Agency

Nurses Entrepreneurs

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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.

suzanne4,

thank-you so much for your prompt reply! and yes, i will be e-mailing you again soon for more info! i have so many questions at this point. i am in the process of drafting a business plan while working full time - not very easy! anyway, thanks again!

p.s. what is a pm?

natalyia.

solicitation removed.

Specializes in ER, ICU.

Natalyia:

I have read Suzanne4 postings commend her for her candor. I think she fails to tie it all together with what I have come to find is the most critical point and most often missed by new start ups - CAPITALIZATION and what that starting point is for a staffing agency.

Be VERY aware of those people who state that you can start with nothing. That just doesn't happen! Suzanne correctly points out that there are so many hidden expenses that you will have to deal with and sometimes pay up front.

Nine years ago I started my agency. We have now expanded in two different states and serve over 40 different health care facilities. Our growth has been both "organic" (expansion purely within the internal business structures) and through acquisition (purchase of other small agencies). We (my company) has seen the pitfalls and reaped the rewards of this growth.

PLEASE - do not get sucked in by these postings of "START UP FOR NOTHING!" or "I DID IT WITH LESS AN $100!" Ultimately I believe that these people will be selling you something. Continue to talk with people like Suzanne who are experienced and realistic.

Good luck.

Michael

hello suzanne4,

just a few questions about your last comment re:starting an agency. you wrote about expenses that one would need to worry about, what sort of expenses are involved other than the obvious supplies needed, and a cushion of money in the bank to pay nurses bi-weekly in lieu of payment from the hospital? Also, what type of insurance are you referring to? is the insurance for your agency and for the nurses separate? and like thompsonlpn, i too would like info on what the current bill rates are. i understand your point that there are other issues to consider but we still need to know the competiton's rates otherwise we may get laughed out the office when trying to garnish a contract!

please help!

thanks,

natalyia.

Just wanted to let you know that I had my own agency and it failed. Hospital's account payables are horrible. The average time from the invoice being submitted to me receiving my pay was 60 - 90 days. In the meantime I had to pay my nurses. Don't forget that most facilities require you to have professional liability of 1 million on the front end and three million on the back end. I know it sounds good to be self employed. The reality is it can bankrupt you quick. It took me four years to recover. I currently work for the largest per-diem agency in the country and the pay is good. Make sure you talk to a financial advisor before you get in over your head.:)

Just wanted to let you know that I had my own agency and it failed. Hospital's account payables are horrible. The average time from the invoice being submitted to me receiving my pay was 60 - 90 days. In the meantime I had to pay my nurses. Don't forget that most facilities require you to have professional liability of 1 million on the front end and three million on the back end. I know it sounds good to be self employed. The reality is it can bankrupt you quick. It took me four years to recover. I currently work for the largest per-diem agency in the country and the pay is good. Make sure you talk to a financial advisor before you get in over your head.:)

Specializes in ER, ICU.
Just wanted to let you know that I had my own agency and it failed. Hospital's account payables are horrible. The average time from the invoice being submitted to me receiving my pay was 60 - 90 days. In the meantime I had to pay my nurses. Don't forget that most facilities require you to have professional liability of 1 million on the front end and three million on the back end. I know it sounds good to be self employed. The reality is it can bankrupt you quick. It took me four years to recover. I currently work for the largest per-diem agency in the country and the pay is good. Make sure you talk to a financial advisor before you get in over your head.:)

Excellent points gsnga!

Michael

Hi Michael! Will you be in Mi towards the end of July? Planning on a visit then.............. :balloons:

Specializes in ER, ICU.
Hi Michael! Will you be in Mi towards the end of July? Planning on a visit then.............. :balloons:

Suzanne:

I'll be here. . . this IS the headquarters for everything. . . Give me a call when you get in. . .

Michael

edited by The Moderator to remove solicitation. :confused:

This is a violation of TOS; if you have any questions feel free to PM me. ;)

Hi there I live in NYC and i too will like to start a homebased temp nurse staffing agency but I will like to know how much should i pay my RN's and how much should i charge? Also How does scheduling work? Do hospitals call 24hrs in advance to order nurses.when and how do they ley you know they are looking for prn that you have availble? what do you do if you have nurses that change the times they can work? Can you please help me to understand the how a temp agencyis runned?

thanks

sherese

Hi to all I live in NYC and i will like to start a nurse staffing agency. Can anyone give me some advice as to how much agencies charge in NYC. i will be in competition with agencies like White glove ( a huge local agency) Also Can anyone tell me what running an agency is like. do hospitals call way in advance to order nurses? what if they call you and you dont have any nurses available?How do you get contracts and recruit nurses to join your agency? and do nurses who already have fulltime jobs also work 13 wk assignments.Who are these nurses that work on 13wk assignments do they have regular jobs?

I think that you need to do alot more research into this before deciding that this is what you want to do? Do you have unlimited resources as far as funding your operation? Remember that the facility may not pay you for 60 to 90 days but you will be expected to pay your nurse long before that money comes in.

Best thing for you to do is make an appt with your accountant................

And find out what the rules are in NY..................

Have you ever worked agency?

White Glove is an international agency that recruits from all over the world.

Every facility will pay different rates, there is not one figure. You need to do your own negotiating for your contracts.

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