How to become a Nurse Recruit Agency?

suzanne4, RN · Mar 20, 2006

To do it legally and properly, you need to set up a corporation and go the proper legal channels. There is actually much work that gets done on the side of the agency if you set one up. They do not just get handed a referral bouns.

Unless you actually have a few hundred thousand dollars in American money sittin garound, do not even consider setting up and agency. Especially dealing with foreign nurses.

yxj124 · Mar 20, 2006

Hi suzanne4, what you mean proper legal channels? And where can I find related information?

nightingale, RN · Jun 11, 2006

There is a lot of investment of time in researching the business aspects of setting up an Agency. The finances needed to this are tremendous. I do not think Suzanne was saying you need an MBA but you do not support and knowledge of the business aspects (and investment required) to maintain an Agency.

Again, I must refer to my sticky on researching of a Business Plan to begin researching this type of venture.

yxj124 · Jun 11, 2006

Dear all,

Thank you for the suggestions. Actually, I've started a Corp. for a while and recruited 6 international RNs already. 4 of them have been in the States and will start to work after getting EAD card. 2 of them will come to the States through CP cause they are unable to afford themselves during AOS. The reason I posted my question was I "thought" it must be very difficult to contract with hospitals since I didn't have any business experience. But, I simply wrote a business plan and discussed with the HR in my hospital. I guess I am the lucky one ^_^. But, which doesn't mean my dream come true from air. I have a contracted attorney, who is one of my husband's best friends, and a CPA, who is my neighbor and his wife is a RN too. We had hundreds meetings and I flied to Asian and South Africa several times within 2 months. It's not an easy work, honestly.

Through the networking from my husband, I'll go to Hong Kong and Singapore for several RN presentations next month. I really appreciate Suzanne, Nightngale and all of you here. The idea of my work is from all of you, although I am unable to share my profit with you ^_^. BTW, I agree with 6four230 somehow. "Starting your business is very possible in America" is what I learn in the States. And, it's very true "Possible not easy".

suzanne4, RN · Jun 11, 2006

But then, you are no longer in Taiwan as your location shows. Things are different when you are already in the US legally, but if you are trying to do things out of the country, and have never been to the US, then there are many issues involved.

Adn it does invlove alot of work.

caroladybelle, BSN, RN · Jun 11, 2006

If you listened to people like Susan you'd never get your biz off the ground. Disregard her MBA, most successful entrepreneurs dont have one. Also, more importantly most of them dont start with "hundreds of thousands" in the bank. If I had my guess I'd suspect the people that are discouraging others from starting an agency tried and failed themselves. Doesnt mean you will. I know they mean well but you can be the exception.
Dave G., CPA, MS

And how much experience with starting such an agency do you have, Dave?

yxj124 · Jun 12, 2006

But then, you are no longer in Taiwan as your location shows. Things are different when you are already in the US legally, but if you are trying to do things out of the country, and have never been to the US, then there are many issues involved.
Adn it does invlove alot of work.

To Suzanne,

Taiwan is my nationality, not where I'm located. As in my first post, I work for a hospital in the States that how I help international nurses relocate. I was getting referral bonus from my hospital before. It's why I planed to start a Nurse Recruit Agency. Since there's a demand in my hospital, and there are many international nurses wanna work in the States. I simply built a bridge for both of them. You are right, it does invlove alot of work, especially dealing with INS. But there's no free lunch. And I never think this would be an easy job. No matter what suggestions I got from here, I always think it positive. ^_^

secondcup · Jun 12, 2006

yxj124

i am planning to do the same thing. let's compare notes sometime. good luck!

sorry nightngale.

suzanne4, RN · Jun 13, 2006

To Suzanne,
Taiwan is my nationality, not where I'm located. As in my first post, I work for a hospital in the States that how I help international nurses relocate. I was getting referral bonus from my hospital before. It's why I planed to start a Nurse Recruit Agency. Since there's a demand in my hospital, and there are many international nurses wanna work in the States. I simply built a bridge for both of them. You are right, it does invlove alot of work, especially dealing with INS. But there's no free lunch. And I never think this would be an easy job. No matter what suggestions I got from here, I always think it positive. ^_^

It is hard to give information based on where the country states. It is much different trying to do something when you are already in the US and very familiar with how things are done. Since your friends got an EAD, more than likely they were here on another visa to begin with. Correct?

This is very different from someone that is overseas, and has no nursing experience, or even knowlege of hospitals overhere, but just wants to trade in nurses.

And unfortunately, it does happen. I get contacted all of the time, so going on what initial information that you gave, you got the answer that I gave.

Normally, if the agency is out of the US they need to pay for the immigration fees, and expenses for the nurse, and then they get it from the facility when the nurse actually starts to work. They do not get funds any earlier. That is why increased funds are needed, first to prove that you can pay their salary, if you are the hiring agency, etc. I have been getting e-mails lately from nurses in Manila that have signed up with aggencies and have patiently been waiting, only to find that the agency is no longer in business.

HarryHK · Jun 14, 2006

Unless you actually have a few hundred thousand dollars in American money sittin garound, do not even consider setting up and agency. Especially dealing with foreign nurses.

I started an agency with only a few thousand dollars for living expenses until invoices started getting paid. There are very few costs involved with starting an agency, that is why you see perhaps a hundred new ones a year. In business that is called "low barriers to entry". Many agencies start just as I did with the agency contracting only the owner out.

However, I would agree with you 100 percent about recruiting foreign nurses. I would not do it either without several hundred thousand dollars or even better a large established company with good cash flow. The costs and lag time are extraordinary. On the other hand, if one can finance it, it is a proven business model with lots of room to grow. Congress is now considering a bill to allow unlimited nurses to enter the country with the proper credentials and a sponsoring agency or hospital. It will likely pass.

Of course the built in difficulty of credentialing foreign trained (and often non with non fluent English) will limit the actual numbers of nurses coming to the US. Currently there are about 4 to 10 thousand nurses a year entering the US (conflicting figures from different sources). But given the escalating US nursing shortage, that number will grow as more people like the original poster enter the business.

HarryHK · Jun 18, 2006

My apologies to all. I apparently did not read the whole thread. The original poster has significant resources, and has already had success in the business.

I have helped two of them got their RN license and now working in my hospital. Of course, hospital gave me a referring reward for this

There is actually much work that gets done on the side of the agency if you set one up. They do not just get handed a referral bouns.

Sounds like I was not the only one who did not read carefully. She did just get handed a referral bonus!

To do it legally and properly, you need to set up a corporation and go the proper legal channels.

Definitely you have to go through the proper legal channels, just as it sounds like you have done. A corporation is not a bad idea, particularly if you have significant assets to protect, but not mandatory. The majority of small businesses in this country are sole proprietorships. Besides limited liability, there are some significant tax advantages to incorporating, I started just as you did and incorporated later when the benefits became overwhelmingly clear. Depending on the state, it is not usually difficult or expensive to incorporate.

If the answer is, how do I work with hospital? Do I just call HR and simply ask "do you need RN?"

OK, back to the original question I did not see. :-) This is a marketing question primarily. And yes, you can call the hospital and simply ask "Do you need RN". That is what I have been doing with some success to market myself. At this point, it sounds like you are very small, so really your best asset is a nurse you've helped through the system. This may well be your best way to market, one nurse at a time. As a nurse can get a position almost anywhere in this market, I would go with hospitals in areas where your friends would like to work.

It is probably more profitable to set the nurse up with an 18 month or 2 year contract than just taking a referral bonus. Of course there is some risk there of a cancelled contract.

I know larger companies may have a shared cost structure with agencies where some of the more normal upfront costs are shared in return for access to the now credentialled nurses. This would take much more marketing and negotiating savvy than your current slow progress but is perhaps where you want to go in the future. As this may limit where you could place your friends, you might want to wait until you are recruiting strangers!

Anyway, sorry to poo poo (that's Chinese isn't it?) your existing successful business. My bad. My advice was based on thinking you were investigating starting such a business from scratch.