HOW TO START A NURSING AGENCY

Step 1: Determine the Type of Agency

Understanding the distinction between different types of agencies is crucial. Nursing agencies typically charge employees a placement fee, similar to how agents represent actors and athletes. On the other hand, staffing firms or nurse registries charge fees to healthcare facilities and directly employ the nurses. Clarifying the type of agency you want to establish will set the foundation for your business and prepare you for the next step.

Step 2: Research Local Regulations

Before launching your nursing agency, it's essential to familiarize yourself with the specific regulations and licensing requirements in your city or state. Each jurisdiction may have different rules and guidelines for operating a nursing agency or staffing firm. You should contact your local Department of Labor, Department of Health, and Consumer Affairs to determine the necessary registrations for your business.

Step 3: Choose a Name and Business Structure

Selecting an appropriate name for your agency is a critical branding decision. While some individuals opt to use their personal name, it's generally advised to choose a distinct and memorable name for your agency. Additionally, consult with an attorney to determine whether forming a corporation or limited liability company (LLC) would be the best fit for your business structure and liability protection needs.

Step 4: Market Research and Analysis

Conduct thorough market research to identify areas of demand, competitive rates you can charge, and competitive pay rates for your staff. This information will allow you to position your agency effectively in the marketplace and develop a competitive advantage. Differentiating yourself from competitors is crucial to attracting clients and achieving profitability.

Step 5: Develop Documentation

Crafting a comprehensive service contract is essential for your nursing agency. This contract should outline the terms and conditions of the services you provide, including payment frequency, amounts, and legal requirements for staff employment. At the same time, developing a policy and procedures manual as well as a handbook early on, will be of great help when starting to run your agency. 

Step 6: Get a Software and Other Management Tools

Investing in nursing agency software can streamline your operations and increase efficiency. Software solutions like ‘‘OnTime ITS’’ offer features such as compliance tracking, billing, payroll processing, and GPS time and attendance. These tools significantly reduce administrative burdens, minimize errors, and facilitate smooth agency management. 

Step 7: Nurse Onboarding and Staffing Preparation

To establish a reliable workforce, begin onboarding and recruiting nurses in advance. Building a pool of qualified healthcare professionals ensures you can promptly meet client demands once you secure your first staffing contract. A well-prepared agency with a ready workforce enhances your credibility and responsiveness in the market.

Step 8: Secure Staffing Contracts

The most crucial step is securing staffing contracts with healthcare providers. Reach out to your target facilities and negotiate mutually beneficial agreements.

Step 9: Launch and Operations

With all the foundational elements in place, you are ready to officially launch your nursing agency. Begin by placing your very first employee, marking the beginning of your journey as a nursing agency owner.