How to start a healthcare (medical) staffing agency

By Drippay, Inc.Published 9 min read

A healthcare staffing agency, also called a medical staffing agency, supplies nurses, allied health workers, or physicians to hospitals, nursing homes, and other care sites. The business model is the same as other staffing. What changes is state regulation, the credential file behind every worker, and a buyer that is a health facility.

This guide covers what is different. For the entity, the EIN, payroll funding, and markup, which are the same as any staffing agency, read our general guide on how to start a staffing agency first. Here you get the state licensing picture with primary sources, credentialing, optional certification, and how a new agency gets its first facility contract. It is written for owners and sales leaders at US staffing firms. It is general education, not legal advice.

The market you are entering

Staffing Industry Analysts (SIA) reports that the 91 largest US healthcare staffing firms generated $33 billion in 2025 and held 86 percent of the segment. The five largest held 40.7 percent. Aya Healthcare led with 16.3 percent, followed by CHG Healthcare Services at 7.4, Jackson Healthcare at 6.6, AMN Healthcare at 5.6, and Medical Solutions at 4.8. Nine new firms joined the list this year, so new names do get in.

SIA’s forecast expects healthcare staffing to grow 1 percent in 2026 and 2 percent in 2027 after three years of decline. SIA’s senior healthcare analyst says the opportunity is in following demand into the specialties and care settings where shortages are most acute. The analyst also says health systems are building internal float pools and asking staffing partners for forecasting, workforce analytics, and broader solutions. For a new agency, that argues for a narrow start: one role family, one care setting, one region.

Related: Largest staffing companies in the US

Pick the role, the setting, and the assignment type

Medical staffing agency and healthcare staffing agency mean the same business. The choices that shape it are three. Roles: registered nurses, LPNs and LVNs, nursing assistants, allied health such as respiratory therapy, or physicians. Settings: hospitals, nursing homes, schools, and occupational and community sites. Assignment type: per diem shifts, longer travel assignments, locum tenens for physicians, or permanent placement.

Each combination has its own credential file, state rules, and buyer. A per diem nursing assistant desk for local nursing homes and a travel nurse desk for hospitals are different businesses. Pick the one where you already know twenty facilities and ten clinicians you could place this quarter.

Licensing is state by state, and the names differ

There is no national license for a healthcare staffing agency. States regulate it in different ways and under different names: nurse agency, nurse staffing agency, supplemental nursing services agency, health care services pool, or temporary health care services agency. Some states license, some register, some only require reports. Rules can turn on where the agency is, where the worker lives, and where the facility sits. The table shows six primary-source examples. Check every state where you operate.

State examples of how healthcare staffing agencies are regulated
StateWhat the state requiresSource
IllinoisA nurse agency license for agencies that refer, employ, or assign RNs, LPNs, or CNAs to Illinois facilities. Rules were amended April 25, 2025.Illinois Department of Labor
LouisianaA nurse staffing agency license. The application includes a $25,000 line of credit, liability insurance, workers’ compensation coverage of at least $1,000,000, and background checks on owners with 5 percent or more.Louisiana Department of Health
New YorkAnnual registration under Article 29-K of the Public Health Law for temporary health care services agencies and health care technology platforms, plus quarterly reporting and an administrator for each office.New York State Department of Health
MinnesotaRegistration as a supplemental nursing services agency. Licensed facilities may use only registered agencies.Minnesota Department of Health
FloridaRegulation as a health care services pool through AHCA, which publishes licensure forms and a list of registered providers.Florida AHCA
ColoradoNo license through the labor reporting program. Supplemental healthcare staffing agencies must report twice a year. Licensure questions go to other state agencies.Colorado Division of Labor Standards and Statistics

Each state page was checked October 6, 2026. Rules change, so confirm with the regulator before you act.

The list is still growing. McKnight’s Senior Living reports that Nebraska’s LB 921 creates a Health Care Staffing Agency Registration Act, effective July 2027, with annual registration and a $1,500 fee per physical location. It also reports that the act prohibits noncompete clauses and conversion fees. A Barclay Damon alert says New York’s law similarly bars fees when a facility hires a placed worker permanently. If you plan to charge a conversion fee, check the state first.

Use the regulators’ own lists to see your competition. New York, Minnesota, and Florida each publish registered agencies.

Credentialing: the file behind every placement

Facilities buy a credentialed worker, not a name. Build each file from the role, the state’s law, and the facility contract. Verify nursing and other professional licenses with the issuing state board. If the nurse works across states, check whether the state is in the Nurse Licensure Compact, which lets a nurse hold one multistate license. The compact’s site lists 43 jurisdictions as of October 6, 2026.

Screen for federal program exclusion. HHS-OIG publishes its exclusion database as a monthly file, last updated September 10, 2026 when we checked. Because the Privacy Act keeps Social Security numbers out of the file, OIG says to use its online search to verify a specific person or entity. Screen at hire and again on a schedule.

Then add what the facility contract lists: background check, health screening and immunizations, certifications such as life support, competency evidence, and references. Contracts differ, so read them before you promise a turnaround time.

Insurance and the cash you need

Healthcare staffing is employer-side contract staffing. You pay clinicians on schedule, and facilities pay on their invoice terms. That payroll gap is the same one covered in our general guide, and healthcare adds regulator and facility requirements on top.

Louisiana’s application shows what a regulator can ask for: a $25,000 line of credit, professional and general liability coverage, and workers’ compensation coverage of at least $1,000,000. Facility contracts add their own limits. Get quotes from a broker who places healthcare staffing risk before you commit to a first contract.

Related: How to start a staffing agency

Joint Commission certification is optional

The Joint Commission’s Health Care Staffing Services certification is a quality credential, not a license. To be eligible, a firm must place temporary clinical staff who work under another organization’s direct supervision, place at least 10 clinical staff by the on-site review, and collect four months of data on each of four standardized performance measures. Permanent placement firms, internal pools, and non-clinical staff are not eligible.

The Joint Commission says certification is recognized by insurers and other third parties and may reduce liability insurance costs. Those are its claims. Check whether your target facilities, payers, or insurers ask for it before you budget for it.

Win your first facility contract

Many hospitals and nursing homes buy staffing from approved vendors. Your task is to become one and then be the first call when a shift opens. The buyer is often a nursing leader, a staffing office, or a workforce manager rather than the person who posts the job, so confirm who it is at each facility before you write.

Use public data to find facilities under pressure. CMS publishes Payroll Based Journal data, a facility-level file of daily paid staffing hours that includes agency and contract staff. It updates quarterly, and the latest quarter available when we checked was Q1 2026. A nursing home that leans on contract hours, or is thin on nurse staffing hours, is a lead with a date.

Pair that with job postings. A facility posting several nursing roles is hiring now. A past client that posted again is hiring again. dreach flags both for staffing firms, names the hiring manager with a current email and phone, and shows the warmest way in, so your team works the order from its own accounts.

See how dreach names the manager at a facility that is hiring now.

See how dreach tracks your client book

Related: How to get staffing contractsHow to get clients for a staffing agencydreach pricing

Your first 90 days

Days 1 to 30: choose one role, one setting, and your states. Confirm each state’s license, registration, or reporting rule with the regulator. Start insurance quotes. Days 31 to 60: build the credential file template, set up exclusion screening, and sign up your first ten clinicians. Days 61 to 90: list twenty target facilities, find the nursing leader at each, and work them with specific open shifts, not a capabilities deck.

A healthcare staffing agency is a staffing agency with state rules, a credential file for every worker, and a facility buyer. Start narrow, confirm each state’s rule with the regulator, and find facilities that are hiring now. dreach covers that last step: it flags past clients hiring again and employers about to hire, with the hiring manager’s current email and phone.

ask away

Questions

Do you need a license to start a healthcare staffing agency?

There is no national license. Some states license agencies, some require registration, and some only require reports. Illinois, Louisiana, New York, Minnesota, and Florida regulate in different ways. Check every state where the agency, worker, or facility is located.

What is the difference between a medical staffing agency and a healthcare staffing agency?

In practice, none. Both supply clinical or care staff to facilities. State law uses other names, such as nurse agency, supplemental nursing services agency, health care services pool, or temporary health care services agency, so search for the term your state uses.

Do you need Joint Commission certification?

No. It is an optional certification for firms that place temporary clinical staff, with eligibility rules including at least 10 clinical staff placed and four months of performance data. Some facilities, payers, or insurers may ask for it, so read the buyer’s requirements.

How do I check whether a clinician is excluded from federal programs?

Use the HHS-OIG exclusion database. OIG publishes a monthly downloadable file and an online search, and says to use the online search to verify a specific individual or entity.

How much does it cost to start a healthcare staffing agency?

It depends on your states, roles, and contracts. Regulators can set minimums, such as Louisiana’s $25,000 line of credit and $1,000,000 workers’ compensation coverage, and you also need to fund payroll before facilities pay. Price those with your regulators, broker, and a lender before you trust a generic number.

How does a new healthcare staffing agency find facilities to approach?

Start with facilities that are hiring now. Job postings show open roles, and CMS Payroll Based Journal data shows nursing home staffing hours including contract staff. Name the nursing leader or staffing manager and write about a specific open shift.