How do I reduce staffing agency costs at my SNF?
The fastest way to reduce staffing agency costs at a skilled nursing facility is to shift per diem coverage from agency calls to a direct marketplace platform. The markup difference alone - 40-60% agency versus 20% marketplace - delivers immediate savings on every shift.
Where the cost comes from
Traditional staffing agencies charge a markup over the base caregiver pay to cover their overhead, recruiter costs, and profit margin. That markup typically runs 40-60%. On a $20/hour CNA filling 40 hours per week, a 50% markup costs $400 per week over base pay. A marketplace platform at 20% costs $160. That is $240 per week per position in direct savings.
How to calculate your agency cost exposure
- Pull your last 90 days of agency invoices
- Calculate total hours filled through agencies
- Divide total agency spend by total hours to get your effective all-in rate
- Compare against base caregiver pay to find your markup percentage
- Apply a 20% marketplace rate to the same hours to calculate potential savings
Most SNFs that run this calculation find they are paying 45-55% markups on agency hours. The annualized savings from shifting even half of those hours to a direct marketplace is often six figures.
Transition approach
You do not need to stop using agencies entirely to capture savings. Start by routing new per diem needs to a marketplace platform and letting agency volume decrease naturally as your marketplace bench grows. Most facilities reach agency independence within 60-90 days of active marketplace use.
Staffing agency costs are a markup problem. Moving per diem coverage to a direct marketplace at a 20% transaction fee versus a 40-60% agency markup is the single highest-impact cost reduction available to most skilled nursing facilities.
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