Steps to Take and How to Protect Yourself as a Travel Nurse If Your Contract Is Cancelled

Published on 23 May 2025 at 23:05

1. Understand Why Contracts Fall Through

Before panicking, it's important to understand why your contract might be canceled:

  • Facility Budget Cuts: Sometimes a hospital faces internal budgetary changes and cuts back on travelers.

  • Overstaffing: Patient census drops, and suddenly your services aren’t needed.

  • Credentialing or Licensing Delays: Missed deadlines or errors in paperwork can delay or void your start date.

  • Agency Issues: Some staffing agencies may overpromise placements or miscommunicate with facilities.


2. Check Your Contract Terms

Your first step should be reviewing your contract:

  • Cancellation Clause: Many contracts include a notice period (e.g., 2 weeks) or penalties for early termination.

  • Guaranteed Hours: If you’ve started the contract, guaranteed hours may still entitle you to pay.

  • Reimbursement Protections: Are you covered for travel, housing deposits, or licensing fees?

A reputable agency will clarify these terms and often have your back in these situations.


3. Communicate with Your Recruiter Immediately

A good recruiter is your advocate. They can:

  • Help you understand the cancellation reason

  • Provide documentation if you need to show proof to landlords or travel reimbursement programs

  • Find you a backup assignment quickly

Tip: Agencies with multiple contracts nationwide can often reassign you faster.


4. Secure Financial Safety Nets

If you’ve already traveled or paid for housing:

  • Ask for Reimbursement: Some agencies may partially cover travel or housing costs.

  • Look for Per Diem Options: Ask your recruiter about short-term local assignments or per diem shifts while waiting for your next contract.

  • Use a Tax Home Strategy: Having a stable tax home can sometimes help in recovering certain expenses on your tax return.


5. Stay Ready and Credentialed

One of the best ways to bounce back quickly is to:

  • Keep all licenses, certifications, and medical requirements current

  • Maintain digital copies of your credentialing documents

  • Stay flexible with start dates and locations


6. Protect Yourself for the Future

You can’t prevent every cancellation, but you can prepare:

  • Choose Reputable Agencies: Look for ones with strong hospital relationships and good traveler reviews.

  • Ask About Cancelation Frequency: Some agencies can tell you which facilities frequently cancel contracts.

  • Build a Financial Cushion: Plan for gaps between contracts, even if just a few weeks’ worth.


Final Thoughts

Contract cancellations are an unfortunate part of the travel nursing world, but they don’t have to derail your career. By understanding your rights, staying in close contact with your recruiter, and being prepared, you can minimize the disruption and land back on your feet—possibly in an even better assignment.