How can nurses legally own and operate a travel nursing agency?
Contrary to common belief, nurses don’t directly contract with insurance companies. Instead, nursing agencies hire nurses who work in hospitals, and these facilities verify nurse qualifications according to state requirements. The hospital then bills insurance companies for skilled nursing services based on existing contracts.
What’s the proper structure for contracting with insurance companies?
Nursing agencies that hire traveling nurses typically don’t contract directly with insurance companies. Rather, healthcare facilities like home health agencies establish contracts with insurance companies to provide services at agreed-upon rates for Medicare, private insurance, or other payer patients.
What are the compliance considerations for nurse-owned agencies?
Patient care remains the primary focus, with compliance requirements matching standard hospital regulations. While requirements vary by state, the Board of Nursing and other governing bodies maintain consistent standards. The nursing shortage has led to increased flexibility in allowing nurses to work across states, though each facility may have unique standard operating procedures.
What legal protections should agency owners implement?
Agency owners must prioritize liability management through proper insurance coverage. This includes ensuring nurses carry malpractice insurance and the agency maintains comprehensive umbrella policies. Working with insurance brokers specializing in healthcare can help determine appropriate coverage levels and types.
How should agencies manage multi-state operations?
Success in multi-state operations requires thorough research of each state’s nursing regulations. Agency owners should:
- Contact state nursing boards directly
- Seek legal counsel familiar with different jurisdictions
- Maintain humble and professional relationships with regulatory bodies
- Stay informed about varying state requirements
What are the three essential legal steps before launching an agency?
- Professional LLC Formation: Have an attorney properly establish your company structure
- Operating Agreement: Create comprehensive documentation defining roles and responsibilities
- Foundational Contracts: Develop solid contractual frameworks for all business relationships, including careful review of agreements with larger healthcare institutions
