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Dec 10, 2019

Staffing and Recruiting is a business that is mired with a multitude of problems. Back door hires being one of them. However, Medical Staffing and Recruiting firms have even more risks attached to them because of the nature of the business.

What Makes Medical Staffing and Recruiting Different?

You might be wondering what makes it so unique when compared to other staffing and recruitment branches. The main thing that makes it so unique is the fact that a medical business can quickly and easily change hands. This includes hospitals, rehab centers or nursing centers or anything in between.

This is a huge risk in the industry as the changing of management can easily leave you out in the rain. How? By making sure that after the new management takes control, you’re no longer a partner to that specific hospital, rehab center or nursing center.

We have seen cases where the old management paid, cases where the new management paid, and many cases where the old and new management is pointing fingers at each other. There have even been cases where the company filed for bankruptcy and did an asset sale.

This means that you won’t be paid what you’re owed by the previous management unless you have a very good setup before the changing of hands happened.

What You Can Do About it

It can be difficult to get paid after the changing of hands has happened. So the best thing you can do is prepare for it. Here are several options that you have when dealing with cases like these.

Make Sure The Parent Company Signs the Contract

Authority is important when it comes to upholding a contract. It won’t matter much if it’s the staff of the medical institution that signed your contract. However, if the parent company of the institution signed it, then you now have a leg up on the case. They can make excuses like “it’s the company that we’re selling that you dealt with” however, you can easily respond with “No, it’s you who we dealt with, it says right here on the contract that YOU signed”.

Use The Wording Of Your Contract To Your Advantage

Contracts are binding obligations for the companies that sign it. So it only makes sense that you make sure that the client you’re dealing with is aware of what their obligation to you is. You can do this by using a specific type of wording that suits your needs. One type of wording that works well for the medical staffing and recruiting industry is to be notified in writing of any sales that are going to happen. This early warning gives you enough time to react.

Another great option is to have a UCC1 or Cross Corporate Guarantee. These documents will back up your claims when it comes to getting paid before a transfer or foreclosure. The cross corporate guarantee, in particular, is a good document to have because you can still go after the original company after the institution is sold off to another.

Become a Secured Creditor

Becoming a secured creditor doesn’t guarantee that you’ll get paid at the end of the day. But you do have an interest in the company. If it’s a seizure where they’re taking it over but they’re selling to another company, you’ve got to be paid before they can sell it off. The only exception is if it’s some type of foreclosing accident.

However, becoming a secured creditor under the noses of the company can get you sued in some cases. A great way to do this is to use a specific wording that permits you to be a secured creditor of the company. So even if they do try to sue you, you have signed proof that they accepted your terms to be a secured creditor.

If you want to talk to me about a collection issue that you got. Call 10045287 I'm at extension 6578 or shoot me an email at and my assistant will get you on my calendar.


-Our staffing and recruiting clients all have a risk but medical staffing and recruiting firms have a specific risk because these facilities change hands under new management companies just quite a bit.

-If they fail to notify in writing then you know everybody’s responsible.