A new Iowa bill would limit hospitals' and nursing homes' payouts to contract care staff.
House File 2391 was introduced Feb. 8 and passed the Iowa House on Feb. 27 with an 80-17 vote.
If the bill becomes law, it would require the Iowa Department of Health and Human Services to establish and publish a "statewide maximum allowable charges schedule" by Sept. 30 each year, applicable Jan. 1 of the following year. The amounts established in the charges schedule cannot exceed 150% of the statewide average wage for that particular nursing role, thus capping healthcare entities payouts to nurse staffing agencies and technology platforms.
The rule would apply to nursing services professionals including registered nurses, licensed practical nurses, certified nurse aides, certified medication aids, home health aides, medication managers and other "noncertified or nonlicensed staff providing personal care."
Staffing agencies would also be required to register with the state Department of Inspections, Appeals and Licensing before they could work with healthcare entities, and could be penalized for noncompliance.
At a subcommittee meeting in early February, supporters of the bill argued that it would create a "level playing field" for healthcare workers, Iowa Capital Dispatch reported. State Rep. Joel Fry, the bill's sponsor, said the 150% cap would still allow staffing agencies to exist in the marketplace without taking advantage of hospitals and nursing homes.
But not everyone agrees with that math. State Rep. John Forbes said he agrees with the bill's intent but argued that 150% was "on the low side," noting that staffing agencies have a number of overhead costs.
"I know there are cases where you've got a nurse who is making $30 an hour for a facility and the person that’s working right next to them is making $90 an hour. To me, that seems like highway robbery," Mr. Forbes said. "I mean, there shouldn’t be that big of a discrepancy. But I just want to make sure we have a [percentage] in place that makes it feasible for these agencies to be able to still work in the marketplace but not take advantage of nursing homes and hospitals."