How To Start A Healthcare Recruitment Business

June 27, 2018 275 views

Image of nurses

Healthcare Recruitment Business Overview:

Healthcare is an extremely fast growing industry, thanks to the aging population and increased life expediencies.

Over the last century, life expectancy has doubled.  This leaves a large population of elderly people who need in-home care.

In addition, people who are recovering from illnesses, surgeries, or injuries also want help caring for themselves while in the privacy and comfort of their own homes.

The healthcare recruiting business is full of great opportunities for helping people find the right placement in the field of medicine. This job involves finding the best workers and placing them where they are most needed based on their individual skills.

Recruiters use networking skills to pair up doctors with firms in their field. Healthcare recruiting is a way to make sure that job seekers and employers in the medical community find each other.

Among the challenges of job placement agencies is finding clients for the services that they offer. Decide how you will make employers and companies aware of your placement agency services. Tell potential clients about the advantages and benefits of your recruitment agencies. You can, for example, send letters to companies to tell them about the services you offer.

For example, employers and companies will find it cost-effective to outsource the screening and interviewing of applicants for their company. A specialized recruitment department can be prohibitively expensive for many companies.

For example, if your health care recruitment agency specializes in recruiting health care workers like nurses and midwives, you are the best staffing agency to handle the human resources need of hospitals and healthcare institutions.

Skill Set:
Employee and Job Consideration During The Start-Up Phase or In The Future:

Common staff positions needed to run some businesses

Approximate Daily Hours Needed:

Standard business hours would apply, but a person in this business would need to be constantly on-call because of the ever-demanding needs of health care.

Equipment, Supplies, & Services During Start-up OR In The Future:

Essential office Equipment

Monthly Expenses and Operating Costs To Consider:

List of common business skills


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Approximate Minimum Startup Cost:

The startup costs of a business such as healthcare recruitment could be quite small. One would need a standard office, but could feasibly work from the home in the beginning.

Tips and Considerations:
  • Find out all you can about the trends in the industry. Know your competition: in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they’re not getting from the other businesses. Keep from emulating the competition’s strategy. Instead, make the most of your own advantages.
  • Perform all necessary criminal and background investigations for each home health care aide that is hired. The DataBase Records website performs instant nationwide criminal searches.
  • If you’ve decided this is the entrepreneurial opportunity for you, then you will need to choose a location for your business. It may be possible to operate from your home (depending on your local zoning laws); however, the most professional business would be located in an office. Placing that office in a high traffic area with high visibility will greatly increase your marketability. Another important aspect of location is to place your business in an area that has a large medical-needs population.
  • Once you’ve narrowed down your list of locations, check into the competition that is already there. Chances are that if there are five health recruitment agencies already operating in an area, your competition may be too great to overcome. However, that also means that you’re on the right track. There wouldn’t be so many agencies if there were not enough customers/clients to need them.
  • You will need to settle in an area that has a great number of hospitals, med schools, or both. For example, the city of Pittsburgh, Pennsylvania has a number of hospitals and top-notch universities all within a fifteen mile radius. A location like this would be ideal for meetings and person-to-person networking.
Pros and Cons:

The Pros

  • There is a good market for your services.
  • Revenue is good.
  • This job allows for placement of the best individuals in the proper jobs. By placing professionals in the correct areas of the country, and pairing them up with the right health care offices, more lives are being saved, which is very rewarding.

The Cons

  • Might have long hours.
  • Although much of the business will need to be done online, the location will be a key to this business’s home office.
  • This job can be very stressful and difficult to pull off. This pressure to match up doctors with firms can be a major source of tension. The healthcare field is a very rewarding one, but with those rewards, a certain amount of day-to-day stress can be expected.

Even with the most recent recession, the demand for qualified healthcare providers still grew at unprecedented rates. Some accounts, more than 28%. Several studies have also shown that after a recession, the demand for qualified healthcare service providers increases even more, and thus a need for recruiters to fill the bill. If helping unemployed people find lucrative job placements is appealing, this could be a good fit for you.


Payment for your services will depend on whether you go at the business completely solo or partner with another agency. For example:

  • If working with an agency: Say the person recruited is placed with an annual income of $70,000. Most agencies receive 20% of the total annual income as a fee, therefore the agency would receive $14,000. Commissions are then split usually between the independent healthcare recruiters.
  • If working solo: If the person recruited is placed with an annual income of $70,000, the independent healthcare recruitment agency would receive $14,000. of course, for most entrepreneurs, this second option is the most desirable, but working with an agency assists in lowering costs of doing business, as well as offering immediate access to resources and materials that may take years to build on one’s own.


Related Sites:

AMN Healthcare

Equipment and Supplies:

U.S. Medical Supplies






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