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The Hidden Cost of Temp Staffing Firms

Dallas, TX. – January 22, 2024 - The temp staffing industry has served a valuable purpose over the last 75 or so years. However, the service comes at a growing price. The least of which being the hourly mark-up fee on the temporary staff provided.



Some of the hidden agency costs include:


  • The number of temp healthcare staffing firms have doubled since 2010 for the simple reason they can quickly reach profitability with minimal upfront capital. Meaning twice the organizations competing to hire nurses.

  • With the growth of efficient tech-driven on-demand mobile app-based recruiting, over 20 firms have raised well over $100 million. Primarily from equity capital firms in the last few years.

  • A large percentage of the funds raised by these organizations go to compete with healthcare facilities and other legacy agencies to employ nurses. All at a time when the available number of nurses to hire is shrinking.

  • Can your facility, or system, spend a million or more a month to recruit nurses? This increased competition alone substantially increases facilities hiring costs. 

  • Want proof? Just look at a hospital’s internet jobs postings for nurses. Many, if not most RN jobs, now come with a sign-on bonus of $10,000 to $15,000. Sure, some of it can be blamed on the covid hangover, but with growing demand for nurses, at a time when the available pool of nurses is shrinking, slight chance bonuses are going away anytime soon.

  • Once the nurses are hired, the staffing firm then ‘rents the nurse’ to facilities (‘Place the Nurse’ in agency talk) charging a percentage markup on the worker’s hourly wage.

Based on the above it is no wonder agency fees at many facilities are the single highest uncontrolled cost.


Meanwhile agency web sites talk about how much money they are saving facilities? Yes, I get it. They are just here to help!


Again, while temp agencies have served a valuable purpose, this increasingly expensive fee-based business model is outdated and is clearly ready for the ash heap of history.


As such, this April Nurses Lounge will officially be launching a:

  1. Direct Sourcing Platform as a Service (PaaS) for healthcare facilities,

  2.  Combined with a national, locally oriented float pool,

  3. For a simple flat monthly subscription fee 

Once in place, the service should be able to fill the majority of a facilities open PRN/Per Diem Shifts. With an average size hospital spending approximately $3.6 million a year on temp staffing fees, the potential savings could easily be in the millions of dollars annually.

What is Nurses Lounge?

  • Nurses Lounge is a professional network created to aggregate and connect the nursing profession; Nurses, Schools, Associations and Healthcare Facilities on a single platform.

  • Thereby maximizing the timely distribution of essential information to highly targeted audiences of nursing professions.

  • While providing nurses with a suite of features and content designed to assist with the advancement of their careers.


If you agree with the above and would like to start reducing your facilities annual staffing fees by potentially millions of dollars, click here for details and to schedule a demo.


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