Starting An Agency

[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.

[Jodi C]

edited to remove solicitation.

A Moderator.

[parin4u]

edited by The Moderator to remove solicitation.

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

[NorthStar]

Hi,

I've started my own agency and have learned quite a bit in the last 5 years....e-mail me if u want more info.

[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!

[Braswellt]

edited by Moderator to remove advertising.

[LIHHRN]

I feel that people on this forum do know the answer to this enquiry. Can you please share how an individual nurse can research for exact hourly rate that agencies charge the facilities for RN work.

thank you for your answers.

LIHHRN

[Brownms46]

Ask the hospitals in your area, such as unit managers. I have found out the rates that way, so I'm sure you can too. I have even talked to recruiters who have told me their bill rates on contracts I have done, or was interested in. Good Luck!

[Guardian Angels]

I feel that people on this forum do know the answer to this enquiry. Can you please share how an individual nurse can research for exact hourly rate that agencies charge the facilities for RN work.

thank you for your answers.

LIHHRN

You have to approach each facility with a contract and have a pay figure in mind.....Agencies will not tell you what they are charging...It is against the business that they are creating. It would be silly for me to give you a figure so that you could take business away from my employees.

[LIHHRN]

I think guardian angels missed the point of my question. I did not ask that agencies tell me what they charge. I am asking how to RESEARCH one or several agencies exact rates without calling and pretending to be someone you are not; or assuming the rate based on what they currently pay nurses per hour.

[Guardian Angels]

I didn't miss your point. I suggest you do research with facilities.

Agency rates are different because of what insurances are needed to cover employees. Agency's are not the money makers that most think they are. The rates made by agencies are divided to the employee, taxes, Liability Insurance, bonding insurance, workman's compensation, unemployment compensation, criminal record history checks, physicals, paper supplies, attorney's, accountants, lease payment for building of office, computer and fax equipment, marketing supplies ect.

You are comparing apples to oranges.

An individual contractor doesn't have to pay for the above expenses, and could therefore offer a different rate.

[LIHHRN]

I will do research with facilities. But after reading the post on this forum, I thought people here would be able to answer my question directly. I know that i do not have all these expenses; and that will make me very competitive. However, I am not comparing apples to oranges. Agencies have contracts to send nurses to work and I will have contract to go to work as one nurse, much smaller scale.

I want to reseach what they charge because I want to know what my competition is doing. And that exactly what agencies are to IC nurses.

[suzanne4, RN]

Each contract is different, not every agency gets paid the same by the same hospital. Depends on how the contract was negotiated. Same thing with Independent Contracts. You may see 5 different I.C.s at the same hospital, they may all have the same rate or they may each be different. Will vary according to what the market will bear in your area, and the expertise of the nurses involved and what priamry area that they will be working at the area. If the nurse is a member of a heart transplant team for a paritcular hospital, chances are that her salary will be more than someone that will be working M/S only on the day shift. Also called supply and demand.