How to Start a Healthcare Staffing Agency: Everything to Know

Starting a healthcare staffing agency is a business opportunity with much promise and potential. Here are the steps to starting one the right way.

Behind the Healthcare Staffing Agency Industry

Healthcare staffing agencies are potentially highly profitable business ventures. In 2022, the U.S. healthcare staffing market was valued at $23.6 million, with Precedence Research projecting it to grow to $41.17 million by 2032. Agencies profit by charging healthcare facilities a fee for placing someone in a position, which is usually a percentage of the person’s salary or a flat fee for temporary placements.

The industry is rapidly growing due to several factors. The aging population is increasing daily, with AARP reporting that 10,000 Americans turn 65 every day and will represent over 20% of the population by 2030. With this silver tsunami comes an increase in the care facility population. While facilities saw a dip during the pandemic, senior housing occupancy has exceeded 85% over the last 2.5 years. Many of these facilities are already struggling to keep up with staffing demands, and as more and more people need to use them, they’ll need to turn to healthcare staffing companies for help.

Additionally, more people are dealing with chronic conditions. Nearly 60% of adults in the U.S. have at least one chronic condition. Many people with chronic conditions need a care provider to help throughout the day.

More healthcare providers are using technology such as telehealth to keep in contact with their patients. However, using this technology can be difficult for seniors, so people and senior living facilities use caregivers to help. Caregivers are hired to help guide seniors through telehealth appointments and other health technology they might be using.

How to Start a Healthcare Staffing Agency: Complexities and Requirements

A healthcare staffing agency isn’t necessarily more difficult to start than another business, but it does require thorough preparation and compliance with regulations.

Start by creating a business plan. Defining your niche market is extremely important as it will allow you to focus your resources on a specific demographic. Include your operational plan and financial projections in the business plan. The business plan will help you find investors willing to help you get started.

The healthcare industry involves many legalities and compliance requirements. Ensure that you obtain the necessary licenses and comply with healthcare staffing regulations.

You’ll want to have a quality insurance policy to protect not only you and your business, but also the professionals you’ll place in jobs.

It’s time to get to work! Create a marketing plan to attract clients. Then, find people to fill your clients’ spots by developing a recruitment strategy to find qualified healthcare professionals.

Healthcare Staffing Challenges

Owning a healthcare staffing agency is rewarding but challenging. You’re responsible for constantly recruiting qualified candidates. This is a continuous effort as healthcare staff turnover is high, with facilities experiencing some of their highest turnover rates. To grow your business, you need to maintain relationships with healthcare facilities and continuously connect with new ones. As the owner, you’ll need to ensure your agency is always compliant with industry regulations on both state and federal levels.

Despite these challenges, it is a very rewarding career. You fill a vital need in the healthcare system and help people find jobs in your community.

Why Invest in a Franchise

For those looking at how to start a healthcare staffing agency, franchising offers a worthwhile option. When investing in a franchise, you’ll receive a proven business model to follow, brand recognition, training, and ongoing support. All this support mitigates the startup challenges.

The A Place At Home Advantage

Consider going bigger than just starting a care recruitment agency. A Place At Home allows entrepreneurs to capitalize on multiple revenue streams. As a home care franchise, we primarily focus on the $225 billion in-home care market, but our franchisees can take advantage of our multiple revenue streams. Beyond home care and staffing solutions, franchisees also provide care coordination and senior living alternatives.

If you’re passionate about joining the healthcare staffing industry, do so with us at A Place At Home. You’ll join a network that values integrity, compassion, and excellence, equipped with the training, support, and tools needed to build a successful business that makes a real difference in your community.

Fill out our form to begin the journey.


Home Care Market: Industry Analysis, Competition, & Growth

Non-medical home care business profits

The home care market is highly resilient and continues to grow rapidly. Get up to speed on everything you need to know.

Industry Analysis

Home care encompasses a wide range of services, from non-medical companion care to skilled nursing and therapeutic services. The home care market is steadily expanding, with projections indicating continued growth. Statista reports that the U.S. home care market size is $225 billion in 2024. Home care spending is the fastest-growing sector within the healthcare industry. It’s not because of an increase in pricing but an increase in use.

Home Care Industry Growth

The home care industry is experiencing unprecedented growth, driven by the oldest population in U.S. history, an increase in chronic diseases, and a growing preference for aging in place. According to the Population Reference Bureau, the number of Americans 65 and older will increase by 47% by 2050 to 82 million. More and more seniors need help continuing daily living activities. LongTermCare.Gov finds that seniors have a 70% chance of requiring in-home long-term care services and support at some point in their later years.

This “silver tsunami” creates a significant demand for home care services. AARP finds that more than 90% of seniors prefer to age comfortably and safely in their homes rather than a facility.

Advancements in healthcare technology benefit the growth of home care. New developments have made it possible to provide more complex medical treatments in a senior’s home. Meanwhile, the COVID-19 pandemic increased awareness of the benefits of receiving care at home, highlighting the home care industry’s resilience and essential nature.

Home Care Competition

Competition within the home care sector is robust, with players ranging from small, locally-owned businesses to large national franchises. However, the market’s fragmented nature presents unique opportunities for new entrants, especially those affiliated with a strong franchise brand like A Place At Home, which offers comprehensive support, training, and a proven business model.

A Resilient Industry

The home care industry is a resilient one to invest in with its essential nature and adaptability. The demographic shift ensures that as a home care business owner, your customer base can grow for the foreseeable future. It’s recession-resistant, as even in troubling economic times, the demand for home healthcare market services, particularly home care, remains stable, as these services are considered essential.

Home care companies can easily adapt to the market’s changing needs, for example, by using telehealth and remote monitoring technologies to provide continuous, quality care amidst challenges such as the COVID-19 pandemic. They can also add revenue streams to diversify their profits, like A Place At Home offers. Our franchisees provide in-home care, care coordination, senior living alternatives, and staffing solutions.

Additionally, starting a home care business through a franchise increases your potential for success. You can leverage the brand’s established reputation, operational support, and marketing strategies, significantly reducing the hurdles of starting a business from scratch. This support is invaluable in navigating the complexities of the healthcare industry, regulatory compliance, and the competitive landscape.

Join the Home Care Industry with A Place At Home

A Place At Home stands at the forefront of this expanding industry, offering a comprehensive suite of services beyond traditional home care. Our franchise model is designed for success, providing franchisees with the tools, training, and support needed to thrive in the home care sector. Our commitment to quality care, combined with our business expertise, makes A Place At Home a leader in the home care industry.

If you’re looking to make a meaningful impact while building a sustainable business in a growing industry, home care is it. We’re ready to guide you through every step of your franchising journey. Fill out a request information form to get started.