new business : overview
Why Should You Start A Medical Staffing Business?
The severe shortage of nurses and other healthcare
professionals has created an unprecedented opportunity for
entrepreneurs to capitalize on the shortage by starting medical
staffing companies to meet the overwhelming demand for staff in the
market.
Business analysts and the Department of Labor predict that medical
staffing companies will continue to grow because staff shortages are
expected to get worse for at least 15-20 years.
The average age of nurses has increased 25% since the 1980's, from
36 years to 45 years. Retiring nurses are not being replaced because
nursing school enrollments are down or flat, indicating that
staffing shortages will continue to rise.
Another factor contributing to the nursing shortage is that baby
boomers, the largest age group in our population, are approaching
old age. This population will place great stress on healthcare
providers as they begin to experience an increase in health problems
associated with aging.
Advances in healthcare technology are keeping people alive longer.
This population requires more healthcare services then any other
group in the general population.
Healthcare facilities are relying more on medical staffing companies
to recruit and provide staffing services. Medical staffing companies
spend much of their time and resources identifying and screening
qualified personnel therefore medical staffing companies are more
successful in recruiting nurses.
By using per diem medical personnel, facilities can utilize staff
only when they need to, without having to pay for annual salaries
and costly benefits packages.
More and more nurses and other medical staff are choosing to work as
professional per diem employees because they can choose the facility
they want to work in and the days and shifts they want to work.
Contract nurses earn more money than staff nurses and they are not
required to work forced overtime.
Unlike other temporary staff personnel, the average work assignment
for nurses last one (1) year for 20-25 hours per week.
Medical staffing is a highly profitable business with gross profit
margins ranging from 22%-35% and operating margins from 10%-19%.
Medical staffing is a recession proof industry! Even during
downturns in the economy, facilities must have essential staff,
nurses, pharmacists, technicians, etc.
Clients interested in starting a medical staffing business can
choose from four programs. Each of these programs can be provided
separately or in a customized package. Some clients choose to begin
with one program and then branch into others at a later date.
Program 1 - Nursing Services for the Local
Market
In this program the client is taught how to market nurses to local
nursing homes, hospitals and other clients. Nurses are provided on a
temporary basis, temporary to permanent basis and as permanent
employees for a one time fee. Nursing is the largest part of the
medical staffing business. It is recommended that if a client only
wants one program, this is the one to start with.
Program 2 - International Nursing
Providing nurses from overseas to your local clients and
ultimately to facilities around the county can be the most
profitable part of the business. In this program the client is
taught about immigration laws, nurse screening procedures, how to
choose a competent immigration attorney and which nurse brokers to
use around the world. Pricing strategies are discussed, and we
provide samples of client and nurse contracts.
Program 3 - Allied Health and Administrative
Medical Staff
In addition to nursing, the medical staffing
industry consists of 50 other positions which facilities use medical
staffing companies for. Refer to the “ Industry Description” tab of
this website for a listing of many of these positions. We can teach
clients how to provide any or all of these positions
Program 4 - Permanent Placement
In this program the client will learn how to run a successful
permanent placement business as a sole recruiter or with an entire
staff of recruiters. There is a market for permanent placement for
all of the 50 positions in the medical staffing business.