BILL NUMBER: S5150A
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public health law, in relation to temporary services
provided by "health care personnel"
 
PURPOSE:
To clarify and strengthen oversight and transparency requirements for
temporary health care services agencies by refining definitions, report-
ing obligations, and contract provisions.
 
SUMMARY OF PROVISIONS:
*Amends Subdivision 4 of section 2999-ii of the public health law to
clarify that physicians are excluded from the definition of "health care
personnel."
*Adds a definition of "direct care worker" and explicitly excludes
physicians from this definition as well.
*Amends section 2999-jj to prohibit agencies from requiring payment of
liquidated damages or employment fees if temporary staff are hired
permanently by a health care entity, while allowing reasonable cost
reimbursement through contract.
*Amends section 2999-kk to require submission of all executed contracts
between agencies and health care entities to the Department of Health
within five business days; these contracts are exempt from public
disclosure.
*Amends section 2999-mm to change the reporting frequency from quarterly
to annually and requires detailed disclosure of rates, compensation, and
administrative charges.
 
JUSTIFICATION:
Article 29-K was enacted to address health care staffing shortages and
encourage permanent placements. However, its current implementation has
inadvertently penalized temporary staffing agencies that are essential
in stabilizing New York's health care system. These agencies have been
crucial in filling critical staffing gaps, especially in underserved and
rural communities, and often serve as a pipeline for permanent hires.
The legislation imposes stringent requirements on temporary health care
staffing agencies, including prohibitions on certain contract terms and
mandatory reporting obligations. While intended to promote transparency
and fairness, these measures have led to increased operational costs and
administrative burdens for staffing agencies, potentially limiting their
ability to provide flexible staffing solutions.
Moreover, data indicates that temporary health care staffing rates have
largely returned to pre-pandemic levels. According to the Staffing
Industry Analysts' 2024 U.S. Healthcare Staffing Market Assessment, the
high demand for temporary staffing during the pandemic has subsided, and
rates have normalized. This trend suggests that the market is self-cor-
recting, and overly restrictive regulations may hinder the industry's
ability to respond to future staffing needs.
By refining the provisions of Article 29-K, this legislation aims to
balance the need for oversight with the operational realities of staff-
ing agencies. It seeks to ensure that these agencies can continue to
play a vital role in addressing health care staffing shortages and
facilitating permanent placements, ultimately supporting the delivery of
high-quality patient care across New York State.
 
LEGISLATIVE HISTORY:
Amends provisions originally enacted as Part X of Chapter 57 of the Laws
of 2023.
 
FISCAL IMPLICATIONS:
None to the state; the bill may reduce health care entities' staffing
costs by eliminating unnecessary fees and clarifying reporting proce-
dures.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5150: 2999-ii public health law, 2999-ii(4) public health law
S5150A: 2999-jj public health law, 2999-jj(3) public health law, 2999-kk public health law, 2999-kk(3) public health law, 2999-mm public health law