How much does a Medical Staffing Agency cost to buy?

A typical Medical Staffing Agency sells for 2x to 5x annual revenue. With average revenue of $3.5M, expect to pay $7.0M to $17.5M.

How much does it cost to start a Medical Staffing Agency?

Startup costs range from $30K to $120K depending on location, equipment, and scale.

Service

Medical Staffing Agency

Q: What are the profit margins for a Medical Staffing Agency?

The average profit margin for a Medical Staffing Agency is around 10%. Pay rates for RNs run $35–$60/hr; bill rates $65–$110/hr. Gross margin on each worker is roughly 35–45%. After agency overhead (recruiter salaries, ATS software, insurance, compliance, payroll processing), EBITDA margins land at 8–12%. A $3.5M revenue agency nets $280–$420K EBITDA before owner compensation. Factoring/invoice financing is commonly used to bridge the payroll-to-payment gap.

Hospitals always need nurses — and they'll pay to get them

Medical staffing agencies place temporary and contract healthcare workers — nurses, medical assistants, therapists, lab technicians — at hospitals, clinics, and long-term care facilities. The model is simple: agency pays the worker $35–$60/hr and bills the facility $60–$110/hr, keeping the spread. Revenue scales with headcount: a 20-nurse agency running full-time earns $3–5M/year. The U.S. nursing shortage is structurally persistent — the American Nurses Association projects a deficit of 1.1 million nurses by 2030. EBITDA margins run 8–12% on revenue, but acquisition multiples have been 3.25x+ for agencies over $2.5M in sales, with large strategic buyers (AMN Healthcare, Cross Country) paying premium prices for regional books of business.

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Avg Revenue

$3.5M

Profit Margin

10%

Acquisition Multiple

2x - 5x

Startup Cost

$30K - $120K

Difficulty

4/5

How It Works

Agency recruits licensed nurses and healthcare workers onto a W-2 or 1099 basis. Sales team sells shifts and contracts to hospital systems, clinics, and long-term care facilities. Workers fill open shifts on demand. Revenue = bill rate × hours worked. Profit = bill rate minus pay rate, minus benefits, minus overhead. The key skill is the sales cycle (securing facility contracts) and the recruitment engine (building a reliable bench of workers). Digital platforms like Clipboard Health are disrupting the agency model but also creating a staffing marketplace that favors connected operators.

Revenue Range

Low End

$800K

Typical

$3.5M

High End

$15.0M

Pros

+Structural tailwind: 1.1M nurse shortage projected by 2030
+Revenue scales linearly with headcount — no physical constraints
+Acquisition multiples of 3.25x+ for agencies over $2.5M revenue
+Strategic buyers (AMN Healthcare, Cross Country) actively acquiring regional agencies
+Recession-resistant — healthcare demand does not shrink in downturns

Cons

-Payroll float is significant — pay workers weekly before facilities pay 30–60 days later
-Compliance is complex: Joint Commission accreditation, state licensing, credentialing
-Slim EBITDA margins (8–12%) — revenue looks bigger than it is
-Worker loyalty is low — good nurses are constantly poached by competing agencies
-Liability exposure if a placed worker makes a clinical error

Best For

Former healthcare administrators, HR professionals, or operators with access to startup capital ($50K+) and existing relationships with hospitals or nurse networks

Operating Costs

Pay rates for RNs run $35–$60/hr; bill rates $65–$110/hr. Gross margin on each worker is roughly 35–45%. After agency overhead (recruiter salaries, ATS software, insurance, compliance, payroll processing), EBITDA margins land at 8–12%. A $3.5M revenue agency nets $280–$420K EBITDA before owner compensation. Factoring/invoice financing is commonly used to bridge the payroll-to-payment gap.