Independent Contractor : What are the Requirements?

[Nurse Beth, MSN]

Dear Independent Contractor,

RNs in business for themselves is a great thing.

As an independent contractor, you will have more freedom and be your own boss. In your case, do you think it will it be difficult to find private pay clients in your area? You may have to market yourself to get started, and definitely network. Doctors sometimes will refer their patients to private duty nurses they know and trust.

Licensing

Required by law. The nursing care you can provide is defined by your individual state nurse practice act and is the same as that offered by a staff nurse.

Malpractice Insurance

Not required by law, but a necessity. As a private-duty nurse, you are solely liable for any damages that may be assessed or awarded as the result of litigation. Your professional malpractice insurance carrier should be able to answer your questions about coverage.

Bonding

Not required by law, but being bonded adds credibility when you advertise your services. It assures your clients that there are funds set aside in case of damage.

Other Considerations

I would talk with other independent nurse contractors and join an organization such as National Nurses in Business Association, or Empowered Nurses Organization. Check out Nurse Entrepreneurs here on site for ideas and to network.

You will have to manage your own Social Security, federal, state and local taxes. Contact an accountant. Since you will have to pay for your own supplies and travel expenses, a good accountant will be able to help you with income taxes.

Be sure and carry your own personal medical insurance. You will not be eligible for worker's compensation.

You will be responsible for billing and collection of fees. Be sure and look at your overhead when you structure your fees. Consult a nurse attorney (have RN, JD after their name) to draw up a contract that you will use with your patients.

Good luck- I hope you'll share your progress.

Best wishes,

Nurse Beth

[SunnyPupRN]

I'm confused on whose doctor's orders the independent contractor would carry out. How does he/she verify orders or keep records of them? Isn't it illegal to bring home those documents?

[Nurse Beth, MSN]

I'm confused on whose doctor's orders the independent contractor would carry out. How does he/she verify orders or keep records of them? Isn't it illegal to bring home those documents?

It is confusing, because it's rarely done. It's rarely done because most people have insurance to pay the medical bills, including skilled nursing care.

Insurance companies contract with nurse providers, not individual nurses.

So really, this is about a wealthy client who isn't going to bill insurance for some reason, but instead is going to pay an RN directly. I don't know how many people there are like that out there.

But then again, I don't move in wealthy circles :)

The doctor could then give paper or electronic orders to the nurse, who could carry them out according to his/her scope of practice in that state.

Again, the nurse would have to provide equipment, etc. I think you would have to charge a LOT of money for this to be feasible.