Relating to health care employment agencies, including the statewide maximum allowable charges schedule applicable to nursing services provided by health care employment agency workers, providing penalties, and including effective date provisions

This bill relates to health care employment agencies (agency), including the maximum allowable charges an agency may charge a health care entity for nursing services provided by a health care employment agency worker (agency worker). The bill defines terms used in the bill, including “health care employment agency” which includes a “health care technology platform” as defined in the bill; “individual agency worker category” which includes specified health professionals who are agency workers, and “nursing services professionals” which includes the same specified health professionals who are not agency workers but are instead employed directly by, or contract directly with, a health care entity. The bill requires the department of health and human services (HHS) to annually establish and publish by September 30, a statewide maximum allowable charges schedule (charges schedule) applicable January of the following calendar year to nursing services provided by agency workers. The amounts established in the charges schedule must be no greater than 150 percent of the statewide average wage paid in the most recently preceding cost report year by a specific type of health care entity to a nursing services professional, within a specific nursing services professional category, and within the applicable core-based statistical area of the state; and must be inclusive of the hourly rate, administrative fees, contract fees, transportation or travel stipends, per diems, and any other costs an agency is authorized to include in the charge to a health care entity for nursing services provided by an agency worker within an individual agency worker category. The bill requires each separate location of an agency registered in the state to utilize and comply with the charges schedule established under the bill. The bill directs HHS in cooperation with the department of inspections, appeals, and licensing (DIAL) to adopt administrative rules to administer these provisions of the bill. The bill prohibits an agency from using the establishment of, or the required applicability of, the charges schedule as a basis for prohibiting or otherwise interfering with a wage increase for any agency worker. The bill amends current penalties under Code chapter 135Q and includes new penalties for violations of provisions included in the bill.2(4) (relating to submitting quarterly reports to DIAL), is subject to an initial monetary penalty of $5,000 and shall be provided notification and given a 30-day grace period in which to comply. If the agency fails to comply following the notification and within the 30-day grace period, the agency shall be subject to a monetary penalty of $25,000. If the agency continues the noncompliance, the agency shall be subject to an additional monetary penalty of $25,000, revocation of registration, and denial of subsequent registration for up to three years.2(2) (relating to certain prohibited restrictions on agency workers or health care entities and contracting prohibitions), or that knowingly provides an agency worker who has an illegally or fraudulently obtained or issued diploma, registration, license, certification, or background check to a health care entity is subject to a monetary penalty of $5,000 for each violation, and to immediate revocation of registration. If the agency commits a second or subsequent violation within any three-year period, the health care employment agency shall be subject to immediate revocation of registration.2(3) (relating to contracting with agency workers and health care entities) is subject to a monetary penalty of $25,000 for a first offense, and to immediate revocation of registration and denial of registration for the three-year period following revocation for a second or subsequent violation.3 (relating to requirements regarding the statewide allowable charges schedule), shall be subject to a monetary penalty of $5,000 for the first violation and a monetary penalty of $25,000 for each subsequent violation. The bill also provides that the managing entity of an agency for which registration has been denied or revoked shall not be eligible to apply for or be granted registration for another agency during the three-year period following the date of the denial or revocation; and DIAL shall not approve a new registration or renew an existing registration for any agency for which the managing entity is also the managing entity of an agency for which registration has been denied or revoked during the three-year period in which registration of the violating agency is denied or revoked.2. The bill provides that the attorney general shall enforce the provisions of the bill. The bill requires DIAL to submit an annual report to the general assembly by January 15, for the immediately preceding fiscal year, that includes a summary of the number of registrations issued and the amount of registration fees collected, the violations of the chapter, the amount of monetary penalties collected, the number of health care employment agencies and managing entities for whom a registration was revoked or denied, the charges schedule, and any recommendations for changes to the Code chapter. The bill takes effect upon enactment.