Data Doesn’t Lie: How to Be Strategic With Agency Staffing

Most operators dislike agency staffing. As Nancy Butner, Regional Vice President at Life Care Centers of America, put it, “I do not like agency. Any of us in the field do not like it.”

But agency is not going away, and in the right situations, it can be an effective short-term tool. The key is to use agency strategically, not reactively, and to approach it with data, discipline, and a long-term plan.

This is where many facilities get stuck. They view agency as an all-or-nothing decision instead of a targeted resource to support specific needs. As the industry continues to face staffing shortages and rising labor costs, strategic agency management matters more than ever.

Below, we break down Nancy’s real-world approach to using agency wisely.

When agency makes sense.

Nancy shared two scenarios where agency staffing has supported operations without becoming a long-term crutch.

1. Opening or reopening a unit

If a facility is launching a new unit or reopening an area that has been closed for a long period of time, staffing that space quickly is crucial.

Finding night-shift nurses or certain clinical roles can take time. Agency can bridge that gap so the unit can open on schedule while recruitment continues.

2. Sudden staffing disruptions

A leadership change, an unexpected departure, or a spike in resignations can force a facility to slow admissions.

In these moments, Nancy uses agency to keep census stable while rebuilding the team. The goal is to maintain continuity of care without compromising quality or compliance.

In both cases, the emphasis is the same. Agency should be used for a short period of time, under clear circumstances, and with a plan to taper off.

When agency becomes a problem.

Agency becomes costly when it turns into the default solution.

As Nancy shared, the “easy way out” is calling agency every time someone calls in sick. Without structure, this creates dependency and skyrockets costs.

This pattern is common.

• Many operators lack clear visibility into how often and why agency is used.
  
• Decisions are often made based on immediate coverage instead of cost or long-term impact.
  
• Staff want flexibility and extra income, making agencies a more competitive employer than traditional models.
  

Without a strategy, agency fills the void of inconsistent scheduling and turnover. With a strategy, it becomes a last-mile solution instead of the frontline plan.

What leaders should monitor.

Nancy outlined a simple framework for evaluating agency use.

1. Who is using agency and when

Look at the specific shifts and disciplines where agency is being used. Identify whether usage is tied to structural needs or avoidable situations.

2. Contract rates

Schedulers and administrators must know contracted rates, stay aware of price differences between agencies, and choose the lowest-cost, reliable option first.

3. Accountability

Agencies must follow the same expectations as internal staff, including no unauthorized overtime and taking required meal breaks.

4. Invoice accuracy

Executive directors should review invoices closely to verify billing accuracy and ensure contracted terms are being followed.

Consistent oversight is what prevents agency costs from skyrocketing.

The bottom line.

Agency is not the enemy. Unstructured agency use is the enemy.

The most effective operators:

• Use agency only for defined, short-term needs
  
• Review usage daily or weekly
  
• Know their contract rates and hold agencies accountable
  
• Track shifts, disciplines, and trends
  
• Build internal flexibility to reduce long-term dependency
  

Being strategic with agency is not about eliminating it. It is about using it intentionally and pairing it with better tools, better data, and a better plan.

If you want help reviewing your agency usage or building a float pool strategy, Covr can walk you through your metrics and identify the biggest opportunities for savings and stability.

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