Nursing Agency License Requirements, Information and Permits

Application for a nursing agency license varies state to state. Generally, the department of labor, department of health, department of human services, and board of nursing regulates the nursing agency, nursing registry and home healthcare business. In Illinois for example a person may not establish, operate, maintain, or advertise as a nurse agency unless the person or entity is license under the Department of Labor. Nursing agency, home healthcare business applications instructions are usually available from these state regulating bodies. A nursing agency must also be in compliance with these regulating bodies.  In Minnesota, the department of health and department of human services regulates the nursing agency business. Failure to comply with nursing agency license requirements can result in fine and potential license revocation

Generally, the required documentation and statements to apply for a nursing agency license are.

• A statement detailing the experience and qualification of the prospective owner of nursing agency.

• Proof of professional liability insurance.

• Inventory skills and clinical competence checklist.

• Nursing agency policy and procedures concerning personal interviews, reference checks, annual evaluations and health exams, cpr certification and orientation.

• A copy of nursing agency employment application.

But some states does not regulate nursing agency business. States that does not regulate the nursing agency business only requires a business license.

BUSINESS LICENSES AND PERMITS

To start a business it involves securing the necessary permits and licenses. Check the Federal, state, county, city, and township government bodies what permits and license are required in starting a nursing agency business. Some local government level just requires you to pay a certain fee for registration of a business. Check with your local community and state level if any business zoning is impose in your area.

• State License – Check with your state government if your type business requires license and permits.
• Federal License – Check with the Federal Trade and Commission (FTC) if your business requires a federal license.


Starting a Nursing Agency or become an Independent Contractor.

Since we have covered about business name and how to file the name, insurances, and securing the necessary permits and licenses.

Here are the big questions:

1. Do I want to start my own agency or be an independent contractor?
2. How much can I make as an independent contractor or should I start nursing agency?

The answer depends all on you. The nursing agency charges are usually 180% to 200% more of the regular wage of your local area. Let’s say, an average LPN wage is $17 per hour in your town, and then the agency charge is $34 per hour. Then pay your subcontractor $21 per hour and $13 is your gross revenue. It’s that simple. Let’s say you filled 20 shifts for one week. Multiply 20 X 8 hours X $13 equals $2080. That is the gross profit revenue, just managing the phone and scheduling people. Research the pay scale of nurses in your area. Pretend you are a nurse and call different nursing agency or hospitals and inquire salary scale. Newspaper employment classified is a good source. I call these guerilla techniques.