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How Much Does It Cost to Start a Nursing Agency?

Even though the cost of establishing a nursing agency in the United States can sometimes vary depending on a variety of crucial variables, it is important to note that the cost of establishing a nursing agency ranges from $3,500 to $10,000.

As a business owner, you are already aware that any enterprise must be licensed with the state, possess a tax ID number, and follow all applicable laws. What you might not be aware of are the local business licenses, authorizations, and credentials that are required, as every state has specific regulatory requirements.

There are as of now over 3.8 million registered nurses within the United States. Nevertheless, just about 85% of them work in nursing, and thousands are poised to retire. Given these realities, it’s not exactly a surprise that several medical facilities are compelled to employ outside help because their in-house employees cannot handle their work tasks.

A nursing agency, also known as a nursing registry, is a firm that delivers provisional staff nurses to medical institutions. It is classified as a temporary help service by the North American Industry Classification System (NAICS). The NAICS is known for its official industry classification system with numeric codes in the United States, Mexico, and Canada.

Have it in mind that their codes serve as a means of collecting data and identifying businesses for both state and federal taxation and control. Despite the fact that nurses comprise the majority of the healthcare workforce, this line of work continues to struggle with supply problems. The aging population, the shrinking workforce, as well as nurse burnout are all factors.

Furthermore, the majority of people who pursue this profession are women, and they might end up leaving or taking time off throughout their childbearing years to raise a family. This industry has the highest turnover rate as well. Now is an excellent period to establish a nursing recruitment firm.

Factors That Influence the Cost of Starting a Nursing Agency

  1. Location

The cost of obtaining a license varies greatly by state and can probably surpass $400. Local business license charges are fixed by your local authority and are normally available on the website of your city or county. A home health agency administrator is required to receive a state permit.

When you or the person you actually plan to employ lacks that qualification, you must take into account the expenses of training, standardized tests, as well as licensing fees to obtain an administrator’s license.

  1. Model and Niche

Evaluate the investment required to start a nursing agency before writing your business plan. To do so, you must first select a business model. Do you intend to create a new company or purchase an existing nurse staffing agency? If you wish for the latter, look for companies that have an existing market share as well as a good track record.

Another possibility is to start a nursing agency franchise. Accessible Home Health Care, for instance, necessitates a $125,000 upfront outlay as well as finances to cover all expenses for perhaps the first six months of operation.

Some other widely known franchise is Nurse Next Door, which requires a $55,000 original investment, an $8,000 technology startup fee, as well as extra charges for advertising, promotion, instruction, legal representation, certification, as well as other services. You could anticipate shelling out around $105,100 and $199,400 based on the company’s site and demands.

  1. Insurance

There are dangers associated with care provision. Even the finest nurse cannot always control a person’s issues and challenges. Accidents occur as well; people trip and fall, and prescription drugs are incorrectly labeled. To cope with such mistakes, your company requires professional liability insurance.

Truth be told, operating in an uncontrolled area of people’s homes exposes your clinicians to unidentified possible risks such as loose flooring and violent and aggressive relatives.

In contrast to a healthcare facility, nurses cannot call on other hospital workers for assistance with climbs, transfers, and restraints. Each of these factors adds up to massive liabilities for you as an organization. As a direct consequence, general liability as well as workers’ compensation insurance is required.

  1. Marketing and recruiting

Firms tend to act as intermediaries, balancing supply and demand. Nurses are already in short supply and are widely desired by employers across the country. You’ll need to carry out several hiring practices in order to develop a stream of good-value nurses.

Marketing, direct mail, email campaigns, making phone calls, as well as visiting nursing industry events and gatherings are all possibilities.

Have it in mind that you can get your identity out there by touring doctor centers, taking post-discharge planners out to meal, brand management to assisted living facility contractors, promoting to social workers, as well as transmitting direct mail to occupants of senior living. You would need to formulate a methodology as well as a spending plan.

  1. Operating Expenses

If you intend to run a business out of your home, you must factor in the expenses of commercial properties. You may not require anything more than a two- or three-person office till your firm has 20 or more nurses on task. Consider the cost of numerous telephone lines, Internet, office equipment, and possibly a copier.

  1. Reimbursements

As employment rewards and benefits, agencies frequently reimburse specific expenses to nurses. You might pay back a nurse’s mileage if she changes areas all through the duration of her work time or keeps running odd jobs for your customers.


This industry has a promising future. It should be noted that the cost of establishing a nurse agency ranges from $3,500 to $10,000. Nurses who are ready to take responsibility, devote a large portion of their private time, as well as develop the agency gradually are more likely to achieve success in the industry.