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* MCKNIGHT’S LONG-TERM CARE NEWS * MCKNIGHT’S SENIOR LIVING * MCKNIGHT’S HOME CARE Log In Register Subscribe HAVE WE GOT NEWS FOR YOU! *CountryUnited States McKnight's Clinical Daily McKnight’s Business Solutions On McKnight's Weekly Roundup McKnight's Spotlight On McKnight's Daily Update I would like to receive relevant information via email from McKnight's . By registering you consent to the collection and use of your information to provide the products and services you have requested from us and as described in our privacy policy and terms and conditions SIGN UP FOR OUR NEWSLETTERS Privacy Policy | Terms & Conditions Log In MORE FROM MCKNIGHT’S * MCKNIGHT’S LONG-TERM CARE NEWS * MCKNIGHT’S SENIOR LIVING * MCKNIGHT’S HOME CARE Subscribe * News * News * Clinical Daily News * Business Daily News * Tech Daily News * HealthDay News * The Brighter Side * Weekly Roundup * Magazine Issue Archive * Sign Up for E-Newsletters * Magazine * Digital and Print archive * Subscribe * Columns * Editors’ Notes * Guest Columns * Marketplace Columns * Living Leadership * Rehab Realities * The Real Nurse Jackie * The World According to Dr. El * Things I Think * Submission guidelines for mcknights.com * Market News * Earnings News * On the Move * Resources * Newsmakers Podcasts * Market Leaders Podcasts * Game Changers * Business Solutions On * E-Books * Executive Decisions * Dealmaker’s Handbook * Technology Supplement * Workforce Development Guide * Magazine Archive * Webinar Plus * Whitepapers * Videos * Industry Directory * Events * McKnight’s Women of Distinction Awards and Forum * McKnight’s Women of Distinction Honorees * Webinars * McKnight’s Tech Awards + Summit * Pinnacle Awards * McKnight’s 40 for 40 * Topics * COVID-19/Coronavirus * Payment * Policy * Executive Leadership * Workforce Issues * Clinical Update News COMING STAFFING AGENCY CAPS COULD BE ‘WILDLY SUCCESSFUL’ Jessica R. Towhey Kimberly Marselas @KimMarselas July 18, 2023 Share › * Share on Facebook * Share on Twitter * Share on LinkedIn * Share by Email * Print Oregon is the latest state to tackle the rising cost of workers acquired through temporary staffing agencies, but it’s unclear yet just how low rates might go. Or whether the state’s actions will be enough to bring some badly needed workers back in-house. Lawmakers recently enacted legislation directing the state’s Health Licensing Office to create a process to investigate complaints about temporary staffing agencies. The office can impose fines and even revoke permission for an agency to operate within the state. The law also directs the state Health Authority to set allowable rates for staffing agencies. “Oregon has had some long-term care communities in more rural parts of the state close due, in part, to out of control staffing agency costs during the pandemic, with many other providers telling us that they cannot sustain these exorbitant costs for much longer,” Phil Bentley, CEO of the Oregon Health Care Association, said in a statement to McKnight’s Long-Term Care News. “Our healthcare system has a multitude of cost containment measures built into except, until now, around temporary staffing. [The bill] addresses that imbalance.” The legislation also requires that temporary staffing agency workers be properly trained and hold the correct licenses or certifications. The bill was a priority for the Oregon Health Care Association to help providers manage costs and improve the quality of care for residents, Bentley said. Steve Fogg (pictured), chief financial officer of Oregon-based Marquis Companies, remains “on the fence” about the legislation’s potential impact on long-term care, noting that stakeholders still have to come together and agree on the actual rate cap methodology. “In my opinion, the primary goal of the rate cap is to ‘level the playing field’ in terms of how much we as facility operators can pay our permanent workers versus how much temp staffing agencies can pay their workforce,” Fogg said in an email to McKnight’s. “They do not have the same barriers, such as regulated rates and minimum staffing requirements, etc., that we do, which allows them to offer more dollars an hour upon hire. If the ultimate rate cap methodology solves this, then it will be wildly successful.” The Health Authority will set multiple rates, based on a number of categories such as geographic regions, shift differential and the setting where the nurses will be working. The caps won’t take effect until Jan. 1, 2025. In an interview with The Lund Report earlier this year, LeadingAge Oregon CEO Kristin Milligan said facilities have “become dependent on agencies.” She noted that one provider was paying 208% more for temporary staffers to fill 100 shifts per week. Fogg added that a lack of rate cap and the pandemic itself encouraged many workers that historically had been in-house, permanent staff, to leap over to temporary staffing companies. Federal subsidies passed on to states allowed some provider types to afford what he called “outrageous” hourly rates for traveling nurses. And from the nurses’ perspective, flexible agency work may have seemed a way to reduce the risk of COVID exposure during any outbreaks. But neither factor drove an increase in supply even as costs skyrocketed, Fogg added. “Prior to the pandemic, the profile of an individual that wanted to work in a temp staffing agency was largely due to desire for a more flexible work schedule,” Fogg said. “It was also a much smaller chunk of the macro level supply of workforce. Since the start of, all the way through, and now exiting the pandemic, the primary reason people go to temp staffing agencies today is because they can make more money. This is what needs to change.” MORE FROM MCKNIGHT'S LONG-TERM CARE NEWS siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 Starting blood thinners earlier OK in stroke patients with AFib Kristen Fischer 31 May 2023 mcknights.com Stroke patients with atrial fibrillation (AFib) can start taking anticoagulants, or blood thinners, sooner than previous… siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 Air purification installation cuts infections by 40 percent in continuing care facility Alicia Lasek 25 May 2023 mcknights.com Installing medical grade air purification technology on one floor of a Pennsylvania senior living facility resulted in a… siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 Welcome to Mongo’s world, nursing homes James M. Berklan 20 July 2023 mcknights.com Long-term care providers can surely use a smile in times like these, even if it means a bittersweet grin in the end. siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 Also in the News for Monday, July 10 Kimberly Marselas 10 July 2023 mcknights.com Debate begins on $25 minimum wage for healthcare workers … Wings remain unopened in new Florida veterans home amid staff… siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 CMS tells hospitals to fix discharge practices James M. Berklan 10 July 2023 mcknights.com Hospitals’ shortcomings in providing post-acute care providers with adequate discharge information prompted federal regu… siteName McKnight's Long-Term Care News siteURL https://www.mcknights.com siteID 5 Clinical briefs for Wednesday, May 31 Kristen Fischer 31 May 2023 mcknights.com FDA OKS Lexicon Pharma’s drug for heart failure … RSV vaccine may face uptake hurdles … Fight against Alzheimer’s shows … Caps Costs Legislation Oregon staffing agencies * * TOP STORIES View All News ‘HAND-TO-HAND COMBAT’ FOR WORKERS, STRICT NO-AGENCY POLICY IMPROVE QUALITY AND WORKFORCE: PRUITTHEALTH CEO News RAPID ON-SITE FLU TESTS DISRUPT NURSING HOME OUTBREAKS: STUDY News NURSING HOME DESTROYED BY TORNADO CLOSE TO REOPENING, WILL HONOR ‘HEROIC’ STAFF AND RESIDENTS * * EDITORS' PICKS View All THIS IS THE BUSINESS WE'VE CHOSEN By John O'Connor WELCOME TO MONGO’S WORLD, NURSING HOMES By James M. Berklan LOOK BEFORE YOU LEAP INTO THIS BUSINESS OPPORTUNITY By John O'Connor * * HAVE WE GOT NEWS FOR YOU! *CountryUnited States McKnight's Clinical Daily McKnight’s Business Solutions On McKnight's Weekly Roundup McKnight's Spotlight On McKnight's Daily Update I would like to receive relevant information via email from McKnight's Long-Term Care . By registering you consent to the collection and use of your information to provide the products and services you have requested from us and as described in our privacy policy and terms and conditions SIGN UP FOR OUR NEWSLETTERS Privacy Policy | Terms & Conditions * MORE FROM OUR NETWORK FEATURED CONTENT View All Market Leaders Podcasts SHIFTING PERSPECTIVE: NEW GUIDELINES TWEAK TB SCREENING RECOMMENDATIONS Market Leaders Podcasts F694 (PARENTERAL/IV FLUIDS): UPDATED GUIDANCE ON INFECTION PREVENTION WANT TO READ MORE? Please login or register first to view this content. 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