Would you work for a hospital as an Independent Contractor?

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  1. Would you work as an IC if you ended up making more at the end of the year?

    • 13
      I definitely would. The extra money would be worth it.
    • 8
      I am not sure, that sounds like a lot of work.
    • 4
      No, I don't want to have to do the extra work. I am satisfied with what I am making.

25 members have participated

If you were able to work for a hospital as an independent contractor and made more money, do you think it would be worth paying your own , health insurance, self employment taxes (quarterly) and social security? I am not asking if it is possible. I am simply asking for some feedback to see if you think it would be worth the extra effort if you ended up making more, say a net of about $5-$10/hr more.

That 20 to 35% agency margin I quoted is after all direct traveler costs, including health insurance, housing, per diem, and the employer's share of FICA, unemployment compensation, and workers comp. As far as getting your own insurance, with one pre-existing I am paying less than half of what group health would cost. I know that can't work for everyone, however everyone can COBRA existing insurance for 18 months at the exact same cost as the agency (plus 2%). So that margin is truly extra for the independent traveler.

There is a lot more in the way of benefits - for one, I only am negotiating for one person, me. I don't have to lowball to get the contract and try to squeeze in many more travelers to the same hospital. I usually have the highest bill rate of any agency. When you have a corporation, you can deduct a lot of expenses first dollar - which is far better than itemizing a 1040 as an employee. All my healthcare costs are paid, including mileage to the drugstore for aspirin.

Running your own business takes a certain mindset that is not for everyone. But there is no doubt that it pays more.

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Specializes in ED, Telemetry,Hospice, ICU, Supervisor.

The CRNAs at my hospital are all independent contractors. There are 8 that I know of personally. They consider themselves as a small business, something to do with filing paper work that makes an LLC or something. In any case they have to file for taxes quarterly but they all share the same accountant. In any case the CRNAs get to use a lot of those corporate loop holes and end up making more money than if they were a regular employee.

I asked about how complicated filing for taxes must be, and they all told me the accountant handles all that. All they do is turn in paperwork. I wouldn't mind having that level of autonomy. The idea of being my own boss has always intrigued me.

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Agencies do exactly the same. They offload accounting, payroll, housing, and even recruiting!

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Specializes in ED, Telemetry,Hospice, ICU, Supervisor.
Agencies do exactly the same. They offload accounting, payroll, housing, and even recruiting!

What does "offload accounting" mean?

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Hire someone else to do it rather than do it in-house.

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Ned, I am in the process of starting my own contracts (after 17 years of traveling). You seem to have a real grasp of the necessary details, so I wanted to ask you where I can find agency/client rates for various states and cities. I am in Southern California, but I also need rates for Florida (the traveler's home away from home, lol). Any advice appreciated, feel free to PM me (I cant PM you yet, Im too "new")....thanks!

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Rates vary depending on lots of stuff. No lists. But all you have to do is ask. Staffing people are always happy to tell you what they want to pay for a profiled nurse. Depending on stuff, you can accept or use their first number (usually an average of what they are paying other agencies) as a starting point. Hot specialties, need, and the traveler profile may adjust the number.

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Hi Ned,

so in the US is it possible for someone to set up an agency and to be the nurse of that agency simultaneously?

Thx

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Odd question. Why on earth not?

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YES! And everything btoddrn said. I am a Medicaid Independent Contractor-Private Duty Nurse in Home Health Care. One of the most appealing things is that I know I'm not being underpaid, going to work everyday with less qualified people making $5+$10 more than me because of race & gender. I do my own billing. Also, I chose whom I work for, and when.

I'm not familiar with how to do it with a hospital. What's the process to becoming an Independent Contractor with a hospital?

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Specializes in Cath Lab. Operating Room.

Hello NedRN

I'm starting in this business and I would like to ask you just specific and easy questions. Could you please email me or send me a PM to see if you can help me please. Thank you!!

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Post questions here!

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