Why agency pay more?

Brownms46 · Feb 29, 2004

Bottom line - I got tired of the vultures sucking the blood out of me so I went independent. To heck with the vultures.

If you do work for an agency, get what ever they tell you in writing before you sign your name.

AAAAMEN! I totally agree with you on this point!

Michael Malecki · Mar 4, 2004

Oreo,

I can not begin to tell you just how far off base you are with your figures. Clearly, your jaded attitude has been shaped by some less than credible agencies out in Wyoming, but please do not malign all agencies and please do not toss around inflated figures that misrepresent the actual profit and expenses of an agency.

I will not attempt to "win you over" here in this forum, but I do feel that I must stand up for the industry you rail against in your scathing post. Yes, in the interest of disclosure, I am an owner of an agency in Michigan and Texas. My position does provide me with the real facts and figures you seem to gloss over or distort. I welcome your feedback along with anyone else who may have questions or comments.

Michael Malecki

As to a company working out of its place of residence (be it a converted garage or basement), that is nothing unusal out here. Many very reputable service companies - especially contractors (which is what an agency is) operate out of their home. I myself now operate my nursing company out of my home. Maybe we just do things different out here, but being operated out of a home is nothing special or abnormal out here.
All the agencies around here bill the facility additional charges if they have to supply housing. The housing cost DOES NOT come out of the agency's pocket. Many facilities have deals made with motels and apt. complex managers to supply housing so that the agency won't add it to the bill. The facilities figured out that paying for housing direct was cheaper than what the agencies where charging with the markup. Most agency's hourly rate around here is $23-$25 an hour. So far, I have only talked to one nurse aournd here that made $30 - and that was for her to work as a charge.
Also, if you work as charge, that is billed as an extra to the facility also as is anything which is paid to the nurse for travel. The only thing that comes out of the agency's pocket is its share of the taxes. Every agency that we have talked to so far, doesn't want the nurse to know that it is passing all the additional cost on to the facility. It has been my experience that agencies in general like to pretend that they are having such a hard time making money paying all those additional cost.
I was able to find out this information by talking to facility personal and ex-employees from a couple agencies. While there are probably a few exceptions, I generally consider agencies as unethical because of their deceptive practices.
From talking to nurses, I do believe that there are some good agencies, but unfortunately, I think it is the exception rather than the rule.

suzanne4, RN · Mar 4, 2004

Mike, it was only Oreo that placed the original post. She isn't working in the US yet. And it is nice to see your name again. Haven't heard it in a while since I left MI.

I have ben trying to get my point across that there are quite a few reputable agencies out there. Where you can even get daily pay if you want it and Mike will vouch for that since we both worked for a long time together in Detroit and its suburbs. Sorry that some of you have to deal with "bad people" but that isn't the way that it has to be. Nor should it be.

Before you sign with an agency, check out the Better Business Bureau in your area, or something similar to check on clomplaints against them. My pay checks with agencies have always been weekly, rarely every two weeks.

If I wasn't overseas, the only way that I would work in the US would be with an agency. Did it very successfully for over twenty five years.

rnmaven · Mar 19, 2004

I have been working for an agency in NJ for the past three years full time. I can say that they advocate for their nurses, pay promptly (same day pay is available and electronic deposits of my payroll check hit every Monday AM). It's been great for me because I am making $48 to $50/hr and when I do overtime at the same facility I get time and a half......can't beat that. I love the flexibility, I am rarely cancelled and I have decent health benefits. It's as close to being indepently employed as I want to be for now. I went back to Graduate school and have total flexibilty over my schedule. I am grateful to be in this position and for this time in my life it works for me! Will I ever get a real job? Maybe if I find something where someone wants to pay me what I'm worth......until then, I feel that my agency is great! I understand that things are different working for an agency in a small state......you can be at almost any hospital within a 60 mile radius and if you work twelve hour shift and batch your time you enjoy great pay (I made $96,000 last year) and have long stretches of time off. (So I can crunch out papers for school or just enjoy life). I can go on and on but won't bore you anymore for now. Sorry to hear that some of you are having a tough time with agency work.

Oreo · Mar 19, 2004

suzanne4, thank you so much for the explanation for me :>

suzanne4, RN · Mar 19, 2004

Oreo: You are more than welcome. Haven't seen you post in awhile. Hopefully everything is going well for you.

:balloons:

suzanne4, RN · Mar 19, 2004

Oreo: You are more than welcome. Haven't seen you post in awhile. Hopefully everything is going well for you.

:balloons:

Oreo · Mar 19, 2004

Well, just keep waiting. Although denied, preparing TSE for the visa screen with limited revision material. Anyway, thanks for your concern. You are so nice.

Oreo · Mar 19, 2004

Well, just keep waiting. Although denied, preparing TSE for the visa screen with limited revision material. Anyway, thanks for your concern. You are so nice.

gsnga · Apr 4, 2004

Your story is so unfortunate. I have been working agency for one of the largest agencies and I have had no trouble. I hope you continue your success as an independant contracted nurse. Rumor is Wage and Labor boards are cracking down and highly suggesting to the hospitals not to use independant nurses due to several unpaid tax cases. Good Luck:)

Mister Chris, MSN, NP · Apr 18, 2004

Hi! I know it is probably a bit different over there in USA, but the agencies in Australia still charge a lot and keep a lot. Has anybody tried working independently? Be self employed and do everything yourself from selling and marketing yourself and getting and booking your own work. Cover yourself with insurance/union back-up. Make a name for yourself! Hopefully a good one and get repeat bookings. I have tried it and it is worth all the work and sometimes tears, you do get to charge less than the agencies and yes you still pay tax. The actual tax breaks are better than if someone else employs you though. You gotta be brave and a little bit pushy at first, but it is worth it. (Big downside for some - no sickies!)

calinur$e · Apr 20, 2004

Michael makes a very good point and I'm glad he chimed in. I worked for 2 agencies in the past year -- one good and one bad. I signed on with the first agency (local) because they promised me the world, i.e., great pay, unbelievable benefits, any shifts I wanted, etc. I felt like they understood me because both the owners were nurses. Well I learned very quickly that although I had a high rate ($45/hr), it was almost impossible to get paid. And when I did receive a check, there was usually a problem with it. I quickly understood why most of these "mom-and-pop shops" have a short life-span. They simply did not have the bankroll to pay us when the hospitals didn't pay them for a couple of months.

Learning from my mistake, I signed on with a nationwide company with 250 offices in the U.S. I've been with them for 9 months now. While the rate is lower ($40/hr), I usually get more shifts that I want. And I can receive daily pay from this company, probably due to the fact that they have a large, supportive corporate office. I haven't had any problems with payroll, but I'm sure if I did they would straighten it out. I would have to say that I am happy where I'm at.

So basically, I think that the truth lies somewhere in between what WyomingRN was saying earlier and what Michael is saying here. It's probably true that the bigger companies make more money than the "little guys," but I think that is what helps keep them around. It's probably also more appealing to hospitals to work with an established company than a startup. And I've seen it firsthand that the bigger companies are able to pay correctly and on time. The smaller companies may offer more pay, but I think you are sacrificing stability with them.

In my opinion, I prefer the more established company that pays me fairly and operates their business efficiently. I try not to get all wrapped up in what they're billing the hospital and paying me. If they have a good enough reputation and can get the hospital to pay them $80/hr for my services, then I say more power to them -- just pay me correctly!

Oreo,
I can not begin to tell you just how far off base you are with your figures. Clearly, your jaded attitude has been shaped by some less than credible agencies out in Wyoming, but please do not malign all agencies and please do not toss around inflated figures that misrepresent the actual profit and expenses of an agency.
I will not attempt to "win you over" here in this forum, but I do feel that I must stand up for the industry you rail against in your scathing post. Yes, in the interest of disclosure, I am an owner of an agency in Michigan and Texas. My position does provide me with the real facts and figures you seem to gloss over or distort. I welcome your feedback along with anyone else who may have questions or comments.
Michael Malecki