Invoice targets price-gouging, anti-competitive practices by short-term staffing businesses – Information

Tennessee will quickly be a part of different states in reining in questionable enterprise practices of short-term healthcare staffing businesses and their influence on long-term care services.

SB 702handed by the Tennessee Legislature and awaiting Gov. Invoice Lee’s (R) signature, requires short-term healthcare staffing businesses to register with the state Well being Amenities Fee. It additionally establishes sure primary working necessities for these businesses and eliminates sure provisions in contracts between businesses and each short-term staff and long-term care services, together with assisted residing communities.

The aim of the invoice is to get at practices on the a part of some staffing businesses that “are making it very troublesome for services to keep up the employees they should present providers,” Christopher C. Puri, Tennessee Well being Care Affiliation, outdoors authorized counsel and an legal professional with the Bradley legislation agency in Nashville, informed McKnight’s Senior Residing.

The invoice applies to contracts between businesses and assisted residing communities and nursing houses. It follows a report from the Tennessee Comptroller’s Workplace of Analysis and Training Accountability on the results of the usage of short-term staffing businesses by assisted residing communities and nursing houses on state prices.

Suggestions from that report included the adoption of insurance policies requiring healthcare staffing businesses to register with the state, in addition to increasing the state’s legislation towards price-gouging to incorporate direct care providers supplied by these businesses.

SB 702 takes the report suggestions into consideration in requiring short-term staffing businesses to adjust to state and federal rules relevant to staff at healthcare services, together with background checks. Companies additionally can be required to supply documentation that short-term staff meet all licensing, certification, coaching and persevering with schooling requirements which might be relevant to facility employees members.

The invoice additionally prohibits contract buy-out provisions and non-compete clauses, in addition to liquidated damages, employment charges or different compensation in contracts if a direct care employee is employed as a everlasting worker of a healthcare facility.

As well as, the laws prohibits businesses from soliciting or recruiting healthcare facility employees, or requiring staff to solicit different staff.

The Tennessee Well being Care Affiliation / Tennessee Heart for Assisted Residing championed the invoice. In testimony before the state legislatureTHCA / TCAL Director of Authorities Affairs Reina Reddish mentioned the invoice is a results of “some dangerous behaviors” on the a part of short-term staffing businesses.

“As regulated as we’re, we would have liked to have some rules round them so their behaviors and the employees they’re sending to us, we are able to have some assurances they’ve the standard and the background we want them to have,” Reddish mentioned.

The entire necessities and restrictions on staffing businesses are efficient upon turning into legislation, aside from the registration, reporting necessities and administrative penalties, that are delayed till July 1, 2024, to permit time for rulemaking by the state company.

Different state, nationwide efforts towards value gouging

Oregon not too long ago launched a invoice that might make short-term staffing businesses extra clear and reasonably priced. Different states are also experiencing excessive stress, with many looking for to lighten the burden both regulatorily or legislatively.

Massachusetts and Minnesota have legal guidelines setting most charges that short-term staffing businesses can cost. Throughout the pandemic, Massachusetts elevated the utmost allowed charges, and Minnesota allowed short-term waivers of the utmost charges.

A number of different states, together with Iowa, Louisiana and Pennsylvaniahave handed legal guidelines requiring healthcare staffing businesses to register with their states and pay annual charges. Ohio equally launched a invoice requiring company registration and annual charges.

Sen. Kevin Cramer (R-ND) final fall launched the Travel Nursing Agency Transparency Study Actrequiring the Authorities Accountability Workplace to report back to Congress on the enterprise practices and results of hiring businesses throughout the healthcare business throughout the COVID-19 pandemic.Final yr, LeadingAge and the American Well being Care Affiliation / Nationwide Heart for Assisted Residing formally requested for an Federal Trade Commission investigation into company practices.