How do medical staffing agencies make money?

Adella Pasos
2 min readApr 27, 2022

Medical Staffing Agencies are one of the largest industries in the staffing and recruiting industry. They are responsible for matching the best human-resources talent with temporary and freelance assignments.

The staffing industry as a whole is worth $56.2 billion, with medical staffing adding an additional $19 billion to that total. These numbers are expected to grow as the healthcare industry continues to improve, creating more demand for qualified health care personnel.

Here are the top 3 ways medical staffing companies make money:

  1. They sell contract or direct placement services
  2. They get paid fees on placement referrals
  3. They sell workforce solutions, training services or technology

Medical staffing companies will usually offer one of the three:

Fixed Term Contracts — These give a set end date, for example sixteen weeks, 6 months or one year and can be full-time or part-time.

Permanent Employment — These are extended to employees who work regular hours and are paid a salary or hourly rate. The contracts are ongoing until terminated by either the employer or employee.

Casual Employment — These are extended when the employer is unable to offer them regular hours each week. This is usually setup and billed as a 1099 independent contractor.

There are many different types of medical staff. The main categories are physicians, surgeons, anesthesiologists, nurses, and paramedics.

Healthcare entrepreneurs are people who start their own companies specializing in healthcare. Healthcare entrepreneurs do work for hospitals, pharmaceutical companies, and insurance companies.

They take care of the financial aspects of the companies and set their policies and goals. Entrepreneurs run these companies by setting up goals and then working hard to reach those goals. In the healthcare industry, entrepreneurs are a necessity.

The medical staffing agency is an organization’s way for finding qualified candidates for open positions, whether temporary, temporary-to-permanent, permanent, or contract. Medical staffing agencies provide job candidates with an opportunity for employers to find the right fit for their healthcare facility.

Do you want to start your own healthcare staffing company? Enroll in this course.

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Adella Pasos

Hi! My name is Adella. I’m a business coach and consultant who helps companies grow. Subscribe to my blog for topics on business, strategy, marketing & sales.