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A nursing agency contract is a lawfully binding agreement between a nursing agency registry business and a healthcare facility. Furthermore, the contract between a hospital and nursing agency, clinic, nursing home, rehabilitation center, long-term care, or home healthcare provider is lawful.

In addition, authorized individuals must sign it before executing a deal business, and the contract agreement provisions must comprise the healthcare facilities' terms and the nursing agency registry. The term must include obligations, insurance, billing procedure, payment rate, holidays, and vacations.

How to Draft a Comprehensive Nursing Agency Contract

Below are some effective tips for drafting a comprehensive nursing agency contract.

  • Make Entries for Better Clarity

    The top of a nursing agency contract details the name and address of the contracting agency, your authorization number, and other relevant information. In addition, you must use legal terminology to specify the name you will be known throughout the agreement, such as "corporation" or "agency".

    The primary section will also leave space to fill in the name of the person who will be termed as an "independent contractor" or "nurse." Not all nursing contracts treat nurses as independent contractors, but many do. The advantage of doing so is that the agency is not accountable for settling payroll taxes, and independent contractors receive a 1099-MISC tax form if they make $600 or higher in a year.

  • Spell Out All the Requisite Terms

    Many staffing companies employ nurses who also offer services to other agencies. They mention in the contract that nurses need only take those jobs they can reasonably anticipate completing within their schedules.

    Other nursing staffing agencies require exclusivity and demand nurses to take only those customers directed by the agency. Provisions also can incorporate the minimum number of hours nurses will be reached to fill and the maximum duration of shifts you will offer.

  • List All the Assistance Provided

    To explain the position of the nurses and what they will be reimbursed for, spell out the assistance an independent contractor will demand. In addition, you must incorporate all the services your agency is anticipated to deliver.

    Assistance can fall under general classifications because specifics can get unmanageable. Categories might comprise overseeing nursing subordinates, developing care programs with the treating doctor, assessing new customers for the agency, training new medical service providers, and delivering direct patient supervision.

  • Exhibit Expectations

    If the nursing agency demands contracted nurses to conduct liability insurance, specify this in the agreement with the sum the nurse must carry as an element of the agreement. Furthermore, you must spell out the payment plan and include details about when contractors will be settled and if payment is allocated after collection from the customer.

    You must include details about the documentation you need on invoices and charts and nursing licenses and certifications. Also, it is better to write your confidentiality and termination policies in the agreement, what tools the nurse is anticipated to provide and what the agency will create.

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Key Terms

  • Clean Claim: A clean claim is a claim obtained by an insurance payer that is free from mistakes and processed quickly. Moreover, clean claims are a significant boon to medical service providers, as they lower turnaround time for the reimbursement approach and lower the need for time-consuming appeals approaches. Many providers present their claims to third parties, like clearinghouses, that train in making clean claims.
  • Centers For Medicare And Medicaid Services (CMS): A national agency that controls and supervises healthcare coverage through Medicaid and Medicare. In addition, CMS directly impacts the healthcare of around 100 million Americans, which is increasing daily.
  • Capitation: An arrangement between an insurance payer and a healthcare provider that pays the provider a set sum for every patient they look after. Capitated contracts generally happen within HMOs. HMOs enroll patients in service providers, who are reimbursed a specific amount based on the patient’s age, history, health risks, race, etc.
  • Medicaid: Medicaid delivers insurance coverage to low-income households and people. It is basically an insurance program for people who cannot afford complete insurance coverage. Medicaid is jointly financed by the federal and state governments, and each state has flexibility in how it runs the program, but it still must meet some essential federal requirements.
  • Co-Insurance: A kind of insurance contract between the payer and the patient that separates the cost of medical assistance by allocation. While this is occasionally utilized synonymously with a co-pay, the structures differ.
  • Appeal: The procedure by which a provider or patient tries to convince an insurance payer to spend more (or, in particular cases, settle for any) of a healthcare claim. The appeal on a lawsuit only happens after a claim has either been rejected or retracted.


In a nutshell, if you are a nursing staffing agency that provides nursing talent, in some methods, you are experiencing the ideal storm. In addition, if you own a track record of creating associations with nurses and delivering them to healthcare institutions, you’re looking for a lucrative business market.

If you seek legal assistance in writing your nursing agency contract, our attorneys at ContractsCounsel can assist you. Our attorneys are highly qualified to care for all your contractual requirements and help you create a comprehensive agreement for a better association.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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