As Iowa's nursing homes and hospitals struggle with chronic staffing shortages, lawmakers have advanced a bill that would put additional regulations and oversight on health care agencies that supply temporary medical staff.
The bill, which passed a House Health and Human Services subcommittee on Thursday, would require staffing agencies to register with the Iowa Department of Health and Human Services, which would oversee new requirements such as a wage cap that limits the amount temporary workers can make.
Proponents of the bill like the Iowa Health Care Association, which represents the majority of Iowa's nursing homes, say the COVID-19 pandemic exacerbated staffing shortages and nursing homes are struggling while spending millions on temporary agency workers, who cost significantly more than regular staff.
However, several people told lawmakers they're concerned about the wage cap, which limits the amount temporary workers can make based on statewide average wages for that position.
Dave Palmer, the CEO of Highland Medical Staffing, told lawmakers he’s concerned the wage cap will drive much-needed workers, like nurses, out of Iowa to states where they can earn more.
"My concern is the way that the bill was written with the rate caps in there, so you will not have any candidates that will take those positions," he said.
Amy Campbell, a lobbyist with the Iowa Nurses Association, was concerned the wage cap doesn’t consider that there are different categories of nurses and specialties.
"Beyond the policy of the bill, the practicality of it is one set rate is probably not going to be appropriate since you have different specialty categories in that as well," she said.
A representative for the Iowa Department of Health and Human Services told lawmakers the department doesn't have the expertise currently to oversee staffing agencies and estimated it would require the department to hire three additional staff members.
Lawmakers advanced the bill saying it needs more discussion and possibly amendments.
Rep. Timi Brown-Powers, a Democrat from Waterloo, who works at MercyOne Waterloo Medical Center, said she's seen how temporary workers cause financial and morale strain on hospitals and their staff.
But she said the bill still needs work.
"I don't know that we're there yet," she said. "It sounds like we need to get with [HHS] and maybe look at a sliding adjustment for the cap, but I do think it is something that we need to, to pay attention to."
