While more state lawmakers are proposing legislation to rein in anti-competitive behaviors by some staffing agencies, a new turn of events in Massachusetts proves rules alone aren’t enough to suppress rates.
The Attorney General’s office there recently said it had received “multiple complaints” from long-term care facilities that some temporary nurse staffing agencies are attempting to overcharge or demanding illegal fees.
Massachusetts was one of just two states with an agency cap before the pandemic, and its regulations and rates are updated routinely by the Executive Office of Health and Human Services. But that hasn’t stopped some agencies from trying to squeeze more out of desperate providers.
“Affordability continues to be a major challenge for Massachusetts residents and their loved ones seeking long-term care, which is why temporary nurse staffing agencies need to adhere to state regulations,” AG Andrea Joy Campbell said in announcing an advisory sent to agencies March 29. “Today’s advisory serves as a resource to these agencies and a reminder that my office stands ready to act if temporary nursing agencies attempt to overcharge or mislead long-term care facilities in the Commonwealth.”
The stern warning adds to continued scrutiny from lawmakers nationwide. According to a March Kaiser Health News report, at least 14 states were weighing rate caps, some with new, punitive measures during their current legislative session.
In Missouri, a Senate bill would make it a felony for agencies to charge emergency rates at a “gross disparity” from what they charge in normal times. That bill hasn’t moved since being referred to committee in February.
But short of rate caps, other states have recently sought to target specific agency behaviors. In Colorado, for example, lawmakers passed a rule forbidding agencies from charging fees that typically topped $5,000 when facilities sought to hire agency staff as their own, full-time employees.
In Massachusetts, the AG can pursue litigation to seek penalties or injunctive relief if a temporary nursing agency is found to have committed unfair or deceptive acts. State officials can also revoked the license or registration of an agency found in violation.
Recent complaints focused on request rates above maximums set for different regions in the state; claims that rate caps were suspended due to COVID-19; requests for holiday pay on non-contracted holidays; attempted employee misclassification and demanding a “pickup bonus” for employees who agree to take a shift on short notice.
Campbell’s office said they’d also heard of agencies proposing rates in excess of the maximum rate during inclement weather or based on the number of COVID cases in a building, and charging back bonuses the agency paid to nurses to the facility.
