Agency takes Money for the Bill Rate

Costs of the Contract 

With the money from the bill rate, the agency has to pay all associated costs related to the contract. This includes paying the nurse, the nurse’s benefits (if applicable), paying the recruiter (salary and commission), cost of on-boarding the nurse (drug screen, physical, fit test, modules, etc), and a percentage of overhead cost of running the agency (office rent, utility bills, advertising, third party payroll services, etc). Every agency is run differently and some have higher costs than others. Usually, but not always, larger agencies have higher costs to operate. 

Profit Margin

The agency not only has to cover their costs, but they also have to take an additional amount from the bill rate to make a profit. If the agency doesn’t make a profit, there is no reason for the founders of the agency to take the risk of starting the company. The amount taken for profit is called the profit margin. This amount varies among agencies just like the associated costs to run an agency mentioned above. The profit margin amount is set by the agency based on how much profit they wish to make. 

Profit Motivated

All agencies are motivated by profit just like a lot of travel nurses. Typically, the more we make, the happier we are. However, some agencies are more profit driven than others. Some agencies are very profit driven and are willing to do almost anything to make the maximum profit; while other agencies focus a little less on profit and set their agency up in a way that is fairer to the travel nurses.