How to Start a Nursing Staff Agency Business

Registered nurses are hard to find. The American Nurses Association reports that by the year 2020, America could find itself short of health care industry demands by more than 1 million nurses. In 2010, the nursing shortage affects some cities and regions more than others, but an entrepreneur with a good agency representing reliable nurses willing to work where the demand exists, stands to make a lot of money. Before you can do that, you need to setup your business well and recruit those high-demand nurses -- particularly those with strong hospitals experience.

Step 1

Research the names of your competitors. A lot of nursing agencies are out there, and you will need a name that stands out and represents you well. The national players can easily be found online, but you may need to use local directories to learn about smaller, local agencies in any given market.

Step 2

Create your business entity. If you plan to create a corporation, limited liability company or limited liability partnership, you should apply to your state's secretary of state or division of corporations. If you plan to operate as a proprietorship or partnership, then register for a fictitious business name through your county clerk, registrar or recorder. No matter which business form you take, also apply to your city or county for a business license. All of these government agencies make information and applications available online.

Step 3

Check with your state department of labor and department of health to see if you need to register your agency. While most states don't require this of health care staffing firms, Illinois does.

Step 4

Secure financing sufficient to operate for at least six months without revenue. It takes time to recruit nurses build clients. But even more challenging is that hospitals and other health care businesses often take their time in paying invoices. In the meantime, you have to make payroll and support your business costs.

Step 5

Purchase professional, general liability and workers compensation insurances. Providing patient care always comes with risks. As an employer, you are liable for your nurses' actions and mistakes even though you do not directly supervise them. In addition, you have no oversight as to the safety and proper operation of your employees' work environment -- which places you at higher risk for workplace accidents and injuries.

Step 6

Establish a payroll system. You can purchase software and checks to do it yourself. Or, you can do what many startup businesses do and outsource to a payroll company, which can ensure you comply with all state and federal requirements.

Step 7

Purchase mailing lists and directories of nurses in your target areas as recruiting tools. You can get these from mailing list brokers, state licensing agencies, and nurses organizations and associations. Ideally you want lists and directories that include phone numbers and emails, but this is not always possible.

Step 8

Obtain a directories of hospitals, skilled nursing facilities and home health agencies in your target areas. These can help you identify and contact potential clients. Trade organizations, including the American Hospital Association, sell such directories.

Step 9

Develop your web presence with a website and social media subscriptions. Your website needs to establish your branding and explain clearly to nurses and clients why they should work with you as opposed to your many competitors. Many agencies list their job openings on their sites so nurses can see the opportunities an agency has available.

Step 10

Create collateral marketing materials -- including business cards -- you can use with both clients and recruits. You will need these to follow up on conversations and also to use for face-to-face meetings.

Step 11

Subscribe to job boards and sites, particularly health care and nursing industry specific sites. You can use these to sort through job seeker resumes, and to advertise your company and openings you are trying to fill.

Step 12

Subscribe to a background and drug screening service. Before you can put nurses on the job, you need a thorough background check. The Joint Commission -- the main accrediting agency for hospitals and other health care providers -- requires facilities to comply with state laws on back-grounding. Most state departments of health require a seven-year history in a background report and a ten panel drug screen. Assume all your clients will want this.

Step 13

Interview your recruits carefully and check their license statuses and any disciplinary records. Nurses with bad histories and questionable skills can create enormous liabilities and problems for an agency, so curb your enthusiasm about a recruit enough to also do your homework. You can find sample clinical interview questions online or ask a nurse or nurse manager you know and trust to help you develop them.

References (7)

Resources (1)

New York Division of Corporations: Business Corporations FAQ

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Thursday, May 2, 2013