New legislation to regulate supplemental nursing service agencies was introduced Sept. 7 in the Michigan House of Representatives.
Rep. Sarah Lightner (R-Springport) introduced House Bill (HB) 6364, which would establish a licensure process for those agencies and minimum standards for their operation in Michigan.
The legislation also includes a provision to ensure supplemental nursing service agencies cannot prohibit their employees from being hired full-time by health facilities where they may be working, or be required to otherwise pay fees to be hired full-time by those facilities. In addition, a supplemental nursing service agency cannot bill, or receive payment from, a health facility at a rate higher than 25% of the hourly wage rate paid to a nurse, nursing assistant, nurse aide or orderly currently employed by the agency to a health facility. This provision prevents supplemental nursing service agency’s from collecting excessively high margins.
The MHA supports HB 6364 because it would help to address exorbitant contract labor expenses that threaten the financial sustainability of hospitals.
HB 6364 was referred to the House Health Policy Committee. Members with questions regarding HB 6364 should contact Adam Carlson at the MHA.