Leadership | 03.28.23
Temporary Nurses Cost Hospitals Big During Pandemic. Lawmakers Are Now Mulling Limits
by Kaiser Health News
Missouri is considering making it a felony to substantially raise temporary health care staffing prices during an emergency. A New York bill would cap the amount staffing firms can charge health care facilities, and legislation in Texas would allow civil penalties. The proposed regulations—and others in at least 11 more states, the American Staffing Association (ASA)_ reports—come after demand for travel nurses surged during the pandemic. Typically, about 75 percent of the price charged by a staffing firm to a health care facility goes to costs such as salary, payroll taxes, workers' compensation programs, unemployment insurance, certification, and credential verification, said Toby Malara, an ASA vice president. He said hospital executives have, “without understanding how a staffing firm works,” wrongly assumed price gouging has been occurring. Many ASA members reported decreased profits during the pandemic because of the high compensation nurses were able to command, Malara said.
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