A travel nursing agency connects skilled nursing professionals with healthcare facilities experiencing staffing shortages. The demand for flexible healthcare talent presents a business opportunity for those entering this field. Launching an agency requires careful planning across multiple domains, from legal structuring to client acquisition.
Develop a Comprehensive Business Plan
The first step in launching a travel nursing agency is creating a detailed business plan to act as a strategic roadmap. This document should begin with a mission statement that encapsulates the agency’s purpose and values. A thorough market analysis is necessary to identify target geographic regions or high-demand nursing specialties.
Your plan must provide an overview of the services your agency will offer to both nurses and healthcare facilities. This includes the types of placements, such as per diem, short-term contracts, or temp-to-perm arrangements. A marketing strategy is also needed to outline how you will attract your nursing talent pool and hospital clients.
The plan must feature detailed financial projections, including all anticipated startup costs like legal fees, insurance, and technology. It should also include revenue forecasts based on projected bill rates and placement volumes, along with a break-even analysis.
Establish Your Legal and Financial Foundation
Structuring your agency legally protects you from personal liability. The most common business structures are the Limited Liability Company (LLC) and the S Corporation (S-Corp). An LLC offers simplicity and personal liability protection by creating a legal separation between you and the business. An S-Corp provides similar liability protection and can offer tax advantages.
After selecting a structure, register your business name with your state’s secretary of state office. You must then obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is required for filing business taxes, opening a business bank account, and managing payroll.
Opening a dedicated business bank account is necessary to maintain financial separation, which simplifies accounting and is a requirement for liability protection. You must also secure adequate startup capital from personal savings, investments, or a business loan. It is recommended to have enough funding to cover at least six months of operating expenses.
Obtain Essential Licensing and Insurance
Operating a travel nursing agency legally requires specific licensing and insurance. These requirements are for the agency itself and are distinct from the credentialing of the nurses you will place. State laws governing healthcare staffing agencies vary, so consult the board of nursing in the states where you plan to operate to understand licensing prerequisites.
Insurance is a non-negotiable part of your operational setup. You will need several types of coverage to protect your business, employees, and clients. Professional liability insurance, or malpractice insurance, covers claims related to errors or negligence in the professional services provided by your nurses. General liability insurance protects against third-party claims of bodily injury or property damage.
Workers’ compensation insurance is legally required in most states and covers medical expenses and lost wages for nurses injured on the job. Due to the complexity of these requirements, consulting with an attorney who specializes in healthcare staffing is a prudent step to ensure full compliance.
Build Your Operational Infrastructure
An efficient operational infrastructure will power your agency’s day-to-day activities. The core of this infrastructure is technology designed to manage staffing complexities. An Applicant Tracking System (ATS) is software that enables the electronic handling of recruitment needs, from application to placement.
This system allows you to manage a large pool of nurse candidates, track their progress, and maintain their electronic files. You must also establish robust systems for payroll and benefits administration. This includes processing payroll accurately and managing any benefits you offer, such as health insurance or retirement plans.
To manage these functions, you will need a core internal team. This team starts with recruiters to source talent and a credentialing specialist to handle the verification of nurse qualifications.
Recruit and Credential Your Nursing Talent
Your agency’s success hinges on your ability to attract and retain qualified travel nurses. Recruitment strategies involve a multi-channel approach, utilizing online job boards, professional networking sites like LinkedIn, social media, and referral programs. Creating detailed and appealing job descriptions is important for attracting the right candidates.
Once you attract candidates, the credentialing process begins. This process involves verifying each nurse’s qualifications to ensure they meet the standards of your agency and clients. The primary document to verify is the nurse’s active Registered Nurse (RN) license, which must be valid in the state of the assignment.
For nurses licensed in a state that is part of the Nurse Licensure Compact (NLC), a single multistate license allows them to practice in any of the 41 participating jurisdictions. In addition to licensure, you must collect and verify other documents. This includes:
- Certifications such as Basic Life Support (BLS) and Advanced Cardiovascular Life Support (ACLS)
- Health records, including immunization histories and proof of recent physical exams
- Comprehensive background checks
- Drug screenings
This thorough vetting process is for protecting your agency from liability and ensuring patient safety.
Secure Contracts with Healthcare Facilities
With a qualified pool of nurses, the next step is securing contracts with healthcare facilities. You can identify potential clients by researching hospitals in your target regions, monitoring job boards, and networking at industry conferences. Building relationships with human resources managers and nursing directors is a fundamental part of business development.
When you connect with a potential client, present a professional proposal that outlines your agency’s services, value proposition, and pricing structure. This proposal should highlight your commitment to providing high-quality, fully-credentialed nurses. Be prepared to address questions about your agency’s experience and compliance protocols.
Contracts between agencies and hospitals can take several forms. Many facilities use a Vendor Management System (VMS) or a Managed Service Provider (MSP) to handle their contingent staffing. A VMS is a software tool used by facilities to manage vendor agencies and streamline hiring, while an MSP is an agency that manages all of a hospital’s temporary staffing needs. Gaining access to these systems is often necessary to work with a large number of hospitals.
Manage Placements and Logistics
Once a nurse is matched with a contract, your agency is responsible for managing the placement’s logistics. This is crucial for ensuring a positive experience for your nurses. One of the primary tasks is arranging and covering the cost of travel to the assignment location, which may include airfare or mileage reimbursement.
Securing safe and convenient housing is another core responsibility. Many agencies offer either agency-provided housing, such as a furnished apartment, or a tax-free housing stipend that allows the nurse to find their own accommodations. This flexibility can be a significant selling point for attracting talent.
Throughout the assignment, your agency must provide ongoing support to the nurse. This includes being available to address any issues that may arise with housing, payroll, or the work environment. Providing this level of support helps build strong relationships with your nurses, encouraging them to take future assignments with your agency.