BILL NUMBER: S5462
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the public health law, in relation to establishing
temporary health care staffing agencies
 
PURPOSE:
The purpose of this bill is to regulate nurse staffing agencies in the
State and address price gouging activities conducted by such agencies.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would amend the Public Health Law by adding a new
section that establishes a statutory framework for registration require-
ments of temporary health care staffing agencies under the Department of
Health, requirements for such agencies that do not comply, and estab-
lishes a fee structure.
Section 2 of this bill would establish a severability clause.
Section 3 of this bill provides the effective date shall take effect on
the ninetieth day after it shall have become law.
 
JUSTIFICATION:
Hospitals in New York continue to face extensive challenges resulting
from the Covid-19 pandemic that include unprecedented spikes in the cost
of contract labor. In New York, contract labor accounts for most of the
fiscal pressure healthcare systems and hospitals are experiencing.
Today, costs for contract labor have risen to more than 110% of pre-pan-
demic levels. Further, some nurse staffing agencies have doubled, or
tripled prices charged to hospitals prior to the pandemic and have
netted as much as 40% of those charges in profits. In March 2022, the
average travel nurse earned approximately $3,334 per week. In contrast,
prior to the pandemic, average travel nurse salaries were about $1,800
per week.
This is not an issue confined solely to New York. In February 2021, the
American Hospital Association requested the Federal Trade Commission to
investigate anticompetitive pricing. Then in February 2022, 200 Members
of Congress sent a letter to the White House to request the COVID-19
Response Team Coordinator investigate nurse staffing agency practices
for anticompetitive and price gouging behaviors. As of June 2022, 11
states throughout the Country have introduced, and in some cases,
enacted legislation to address staffing agency activities. Therefore, it
is imperative that New York address this issue to ensure that hospitals
and healthcare systems are not unduly limited in their ability to
service patients in their network areas due to exorbitant fees for
contract labor provided by nurse staffing agencies.
 
LEGISLATIVE HISTORY:
2024 - S5667
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.