How To Start A Nursing Agency In Ontario: A Simple Guide

With the growing demand for quality primary care providers in Ontario, starting a nursing agency could be your gateway to a thriving business while making a difference in your community. Since the onset of COVID-19, Ontario hospitals have more than quadrupled the amount of money paid to nursing agencies. This highlights the demand for these agencies in our healthcare system.
In this comprehensive guide, we’ll walk you through the essential steps to start your own nursing agency in Ontario, from meeting legal requirements to hiring skilled nurses. Whether you’re a seasoned nurse looking to leverage your experience or an entrepreneur passionate about healthcare, this article will provide you with valuable insights to turn your vision into a successful reality.
1. Understand the Ontario Healthcare System
Learning the basics of the province’s healthcare system is the first step in your entrepreneurial journey.
The Healthcare Landscape
Ontario’s system is publicly funded and administered by the Ministry of Health and Long-Term Care. It operates under the Ontario Health Insurance Plan (OHIP), which covers most essential medical services for residents. This universal coverage plays a crucial role in how healthcare services are delivered and funded.
The healthcare landscape includes various types of facilities such as:
- Hospitals
- Long-term care homes
- Community health centers
- Home care services
As a nursing agency owner, you would be providing staffing solutions to many of these facilities so understanding their unique challenges will help you succeed.
Challenges in the Healthcare Market and Regulatory Bodies
The province has many ongoing challenges, including an aging population and a growing demand for healthcare services. There are about seven million people older than 65 in Ontario, creating a big demand for nursing agencies to fill critical staffing gaps.
You should also be aware of the regulatory bodies governing healthcare in Ontario:
- College of Nurses of Ontario (CNO)
- Ministry of Health and Long-Term Care
- Local Health Integration Networks (LHINs)
These organizations set standards, regulate practices, and influence healthcare policies that will impact your agency’s operations.
2. Develop Your Business Plan
A well-crafted business plan will strengthen your agency’s foundation. It will guide your decision-making, help secure funding, and provide a roadmap for growth. Here are some steps to remember when creating a business plan:
Market Research
Start by analyzing Ontario’s healthcare market and your target audience, including hospitals, long-term care facilities, and private individuals. Once you get the lay of the land, research your competitors to understand their strengths and weaknesses.
Look for gaps in the market that your agency can fill: If specific nursing specialties are in high demand, you can tailor your services to bridge this gap. You can conduct surveys or interviews with potential clients to gain insights into their needs.
Analyze the demographic trends in Ontario: An aging population might indicate increased demand for geriatric care. This provides you with an opportunity to develop services that cater to this niche.

Services Offered
Define the specific nursing services your agency will provide. Will you focus on general nursing care or areas like pediatric, psychiatric, or home health care?
Consider offering additional services to set your agency apart:
- 24/7 on-call support
- Specialized training for nurses
- Care coordination with other healthcare providers
- Telemedicine options
Outline your staffing strategies: Will you hire nurses as employees or work with independent contractors? Define your recruitment and retention plans to attract a high-quality workforce.
Financial Projections
Create detailed financial forecasts for your agency. Determine your initial startup costs, including licensing fees, office equipment, and marketing expenses.
Project your revenue based on:
- Expected number of clients
- Average billable hours per nurse
- Your agency’s fee structure
Factor in ongoing expenses such as:
- Payroll and benefits
- Insurance premiums
- Marketing and advertising costs
- Office rent and utilities
Develop cash flow projections for at least the first three years of operation after assessing the best-case and worst-case scenarios.
Seeking professional help can ensure your financial projections are realistic and comprehensive. It will also make it easier when approaching potential investors or applying for loans.
3. Register Your Nursing Agency
Registering your nursing agency in Ontario involves several crucial steps, from legal compliance to designing the business structure. Let’s explore the key aspects of this process.
Choosing a Business Name
Select a unique and memorable name for your nursing agency and check if it’s available through the Ontario Business Registry to ensure it’s available. Your name should reflect your services and be easy to pronounce and spell.
Incorporating healthcare-related terms or your location in the name could improve your agency’s visibility. Once you’ve chosen a name, reserve it with the Ontario Business Registry to prevent others from using it.
Remember to check if your desired domain name is available for your future website. This will help maintain consistency across your branding efforts.
Business Structure
Decide on the most suitable business structure for your nursing agency. Common options include:
Each structure has its own advantages and implications for taxes, liability, and administration. For instance, a corporation offers personal liability protection but involves more complex paperwork and higher costs.
A business lawyer or accountant could guide you in determining the best structure for your specific situation. They can help you understand the long-term implications of each option.
Legal Requirements
Comply with all legal requirements and register your business with the appropriate authorities, including:
- Federal government (for business number and tax accounts)
- Provincial government (for operating name registration)
- Municipal government (for local permits and licenses)

Obtain necessary licenses and permits specific to healthcare staffing agencies. These may include a staffing agency license and a healthcare provider license.
Ensure you have proper insurance coverage, including liability insurance and workers’ compensation. This protects your business and employees from potential risks.
4. Obtain Necessary Licenses and Certifications
To ensure your agency operates legally and maintains high standards of care, the province requires you to have specific licenses and certifications. You’ll need to focus on three key areas: nursing registration, business licensing, and health and safety compliance.
College of Nurses of Ontario Registration
All your nurses have to be registered with the College of Nurses of Ontario to make sure that you don’t face any legal issues. This regulatory body oversees nursing practice in the province.
You’ll need to verify each nurse’s registration status before hiring. The College offers different categories of registration, including Registered Nurse (RN) and Registered Practical Nurse (RPN).
Keep records of your nurses’ registration numbers and expiration dates. Setting up a system to track renewals and continuing education requirements could help you maintain a qualified workforce.
Business Licensing
Your nursing agency requires proper business licensing to operate legally. Start by registering your business name with the Ontario government.
Next, you’ll need to obtain specific licenses and permits for healthcare staffing agencies. These may vary depending on your location and the specific services you offer.
Consider using BizPaL, a free online tool, to identify the licenses you need. It filters permits based on your location, industry, and business activities.
Health and Safety Compliance
Ensuring health and safety compliance is essential to protect your team. You’ll need to adhere to Ontario’s Occupational Health and Safety Act.
Develop comprehensive health and safety policies for your staff. This includes proper handling of medical equipment, infection control procedures, and guidelines for working in different healthcare settings.
Provide regular training sessions on safety protocols. Keep detailed records of these trainings and any workplace incidents. Consider appointing a health and safety representative or forming a committee if your agency grows larger.
Stay updated on any changes to health and safety regulations in the healthcare sector. This helps you maintain a safe working environment for your nurses and clients.
5. Secure Funding and Manage Finances
Careful financial planning and management are key to your nursing business’s growth. You’ll need to set up proper banking, explore funding options, and obtain necessary insurance coverage to protect your business.
Banking and Accounts
Set up a dedicated business bank account to keep your personal and business finances separate. Look for a bank that offers services tailored to small businesses, such as low-fee accounts and online banking. Consider opening both checking and savings accounts.
You may also need to set up a trust account if you’ll be holding client funds. This is important for proper financial management and compliance with regulations.
Implement a reliable accounting system to track income, expenses, and cash flow. QuickBooks or Xero are popular options for small businesses. Regular financial reviews will help you stay on top of your agency’s financial health.
Investment and Loans
Securing adequate funding can propel your nursing agency forward. Start by estimating your startup costs and ongoing expenses. You could create a detailed business plan to present to potential investors or lenders.
Explore various funding options:
- Personal savings
- Loans from family and friends
- Small business loans from banks
- Government grants or funding programs
- Angel investors or venture capital
Be prepared to provide financial projections and a solid business strategy when applying for loans or seeking investors. Remember to factor in interest rates and repayment terms when considering loans.
Insurance Requirements
Proper insurance coverage can protect your nursing agency from potential risks. At a minimum, you’ll need:
- Professional liability insurance
- General liability insurance
- Workers’ compensation insurance
Additional coverage like cyber liability insurance can protect against data breaches. Some clients may require specific insurance types, so research industry standards and client expectations.
Shop around for insurance providers specializing in healthcare businesses. Compare quotes and coverage options to find the best fit for your agency. Don’t forget to review and update your policies annually as your business grows and evolves.
6. Hire Qualified Nursing Staff
Building a team of skilled and compassionate nurses is crucial for your nursing agency’s success. You’ll need effective strategies to attract top talent, verify their credentials, and support their ongoing development.
Recruitment Strategies
A compelling job listing that highlights the unique benefits of working with your agency can attract qualified candidates. Utilize online job boards, social media platforms, and professional networking sites to reach potential candidates.
Partner with local nursing schools to access recent graduates.
Attend job fairs and healthcare industry events to meet experienced nurses seeking new opportunities.
Offering referral bonuses to your existing staff for successful hires can help you tap into their professional networks and find qualified candidates.
Implement a structured interview process that assesses both technical skills and cultural fit. Include scenario-based questions to evaluate problem-solving abilities and patient care approach.
Credential Verification
Thoroughly check each candidate’s credentials to ensure compliance with Ontario’s nursing regulations. Verify their nursing license status with the College of Nurses of Ontario.
Request and validate:
- Educational transcripts
- Professional certifications
- Work history
- References from previous employers
Conduct background checks and drug screenings as required by healthcare facilities. Implement a system to track license expiration dates and renewal requirements for your staff.
Staff Training and Development
Invest in your nurses’ ongoing education to maintain high standards of care. Offer regular in-house training sessions on topics such as:
- New medical technologies
- Patient safety protocols
- Cultural sensitivity
- Communication skills
Encourage staff to pursue additional certifications by providing financial support or flexible scheduling. This can help your agency offer specialized services and stand out in the market.
Create mentorship programs pairing experienced nurses with newer staff members. This fosters a supportive work environment and helps retain valuable employees.
Regularly assess your nurses’ performance and provide constructive feedback. Use these evaluations to identify areas for improvement and tailor your training programs accordingly.
7. Establish Your Brand and Marketing Strategy
Creating a strong brand identity and effective marketing plan can increase your nursing agency’s reach These elements will help you stand out in the competitive healthcare market and attract both clients and qualified nurses.
Branding Essentials
Choose a memorable agency name that reflects your values and services. Develop a professional logo and consistent visual identity across all materials.

Select colours and fonts that convey trust, care, and professionalism. Blue and green are often associated with healthcare and can be good choices.
Craft a compelling mission statement and unique selling proposition. What sets your agency apart? Perhaps you specialize in certain types of care or offer exceptional training for your nurses. Highlight that in your mission.
Online Presence
Build a user-friendly website showcasing your services, team, and testimonials. Include clear contact information and a simple way for potential clients to request services.
Optimize your site for local search to help potential clients find you. Use relevant keywords like “nursing agency Ontario” in your content.
Leverage social media platforms like LinkedIn and Facebook to share valuable content and connect with your audience. Post regularly about healthcare topics, agency news, and job openings.
Consider starting a blog to establish your expertise and improve your website’s search engine ranking.
Networking and Relationships
Attend healthcare industry events and job fairs to make connections and promote your agency. Join professional associations related to nursing and healthcare staffing.
Build partnerships with local hospitals, clinics, and long-term care facilities. These relationships can lead to valuable referrals and job opportunities for your nurses.
Implement a referral program to encourage satisfied clients and employees to recommend your agency. Offer incentives for successful referrals to boost word-of-mouth marketing.
Collaborating with other healthcare professionals, such as physical therapists or nutritionists, to offer comprehensive care packages will help you reach your audience.
8. Set Up Operations
Establishing a solid operational foundation can assist you in ensuring seamless operations. Careful planning of your office space, equipment needs, and agency policies will facilitate smooth day-to-day functioning and compliance with regulations.
Office Location
Choose a centrally located office space that’s easily accessible to both your staff and clients. Consider proximity to healthcare facilities and public transportation. Ensure the space meets accessibility standards and has room for growth.
Look for an office with a reception area, private meeting rooms, and storage space for medical supplies. A location with ample parking for your staff and visiting nurses will be convenient.
Don’t forget to check local zoning laws to confirm that you can operate a nursing agency in your chosen location.
Equipment and Technology
Invest in reliable technology to manage your agency efficiently. Start with:
- Computers and printers
- High-speed internet connection
- Scheduling software
- Medical records management system
- Secure file storage solutions
Implement a thorough credentialing process to verify nurse qualifications. You can invest in a background check system to ensure all your staff meet regulatory requirements.
Purchase essential medical equipment for your office, such as blood pressure monitors and first aid kits. Stock up on personal protective equipment (PPE) for your nurses.
Policies and Procedures
Develop comprehensive policies and procedures to guide your agency’s operations. Create an employee handbook outlining:
- Code of conduct
- Dress code
- Scheduling policies
- Sick leave and time-off procedures
- Grievance resolution process
Establish clear protocols for handling medical emergencies, reporting incidents, and maintaining patient confidentiality. Ensure your policies comply with Ontario’s healthcare regulations and labour laws.
Create a system for regular policy reviews and updates. This will help you stay current with changing regulations and industry best practices.
9. Engage with Clients and Healthcare Facilities
Building strong relationships with clients and healthcare facilities is important for your nursing business’s success. Effective communication, clear agreements, and a commitment to quality will help you establish a positive reputation in the industry.
Service Agreements
When engaging with clients and healthcare facilities, it’s essential to have clear service agreements in place. These agreements should outline the scope of services, pricing, and terms of engagement.
Be sure to include:
- Detailed description of nursing services provided
- Staffing arrangements and schedules
- Billing procedures and payment terms
- Liability and insurance information
Review and update your agreements regularly to ensure they meet current industry standards and legal requirements. A lawyer specializing in healthcare contracts can review your agreements to protect your agency’s interests.
Quality Assurance
Implementing a robust quality assurance program is vital for maintaining high standards of care and client satisfaction. You should develop a comprehensive system to monitor and evaluate the performance of your nursing staff.
Key elements of your quality assurance program may include:
- Regular performance evaluations
- Ongoing training and professional development
- Compliance with industry standards and regulations
- Client feedback mechanisms
Implement a thorough credentialing process to ensure all your nurses meet the necessary qualifications and certifications. This will help you build trust with healthcare facilities and maintain a reputation for excellence.
Client Satisfaction
Regularly seek feedback from both healthcare facilities and individual clients to identify areas for improvement and address any concerns promptly.
Consider implementing:
- Surveys and feedback forms
- Regular check-ins with clients
- A dedicated customer service team
Respond to feedback quickly and professionally, demonstrating your commitment to providing exceptional care. Happy clients are more likely to recommend your services and become long-term partners, helping your agency grow and thrive in the competitive Ontario healthcare market.
Frequently Asked Questions
The following questions address key aspects of establishing and operating a successful nursing agency in the province.
Resources for Starting a Nursing Agency in Ontario
Government Resources
- Health Professional Corporation
- Health Privacy and Confidentiality
- How to start a seniors’ care business in Ontario
- Licensing for temporary help agencies and recruiters
- Temporary help agencies: New Ontario license requires proof of OHSA compliance
Industry Resources
- Government Funding for Nursing Agency Business
- Navigating Nurse Licensing Requirements in Canada
- What You Need to Know to Successfully Start a Healthcare Staffing Agency in Ontario
- How Do You Start a Home Care Agency in Canada?
- Starting a small business as Nursing Agency
Other Resources
- 6 Healthcare Social Media Marketing Strategies for Your Center
- How to Start a Staffing Agency for Nurses
- Temporary help agency licensing: What healthcare facilities (and other employers) need to know
- Does Your Ontario Home Care Agency Need a License? Here’s What You Need to Know
- Understanding Ontario’s New Temporary Help Agency And Recruiter Licensing Regime: What Employers Need To Know
- Unleashing Financial Success: Strategies for Thriving Nursing Agencies
About the author
Maurice