HF 2521 (LSB 5766HZ (1) 89)

HOUSE FILE 2521

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2371)
(SUCCESSOR TO HSB 638)

A BILL FOR

An Act relating to health care employment agencies, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  135Q.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Department” means the department of inspections and appeals.
   2.  “Direct services” means services provided to consumers through person-to-person contact. “Direct services” excludes services performed by persons in a health care entity setting that do not involve the provision of any service or treatment to a consumer of a health care entity. 
   3.  “Health care employment agency” or “agency” means an agency that contracts with a health care entity in this state to provide agency workers for temporary, temporary-to-hire, direct hire, or other contract or employee placements.
   4.  “Health care employment agency worker” or “agency worker” means an individual who contracts with or is employed by a health care employment agency to provide direct services or nursing services to health care entity consumers.
   5.  “Health care entity” means a licensed or certified facility, organization, or agency operated to provide services and supports to meet the health or personal care needs of consumers. 
   6.  “Managing entity” means a business entity, owner, ownership group, chief executive officer, program administrator, director, or other decision maker whose responsibilities include directing the management or policies of a health care employment agency. “Managing entity” includes an individual who, directly or indirectly, holds a beneficial interest in a corporation, partnership, or other business entity that constitutes a managing entity.
   7.  “Nursing services” means those services which may be provided only by or under the supervision of a nurse. 
    Sec. 2.  NEW SECTION.  135Q.2  Health care employment agency requirements —— registration —— liability —— penalties.
   1.  A health care employment agency operating in the state shall register annually with the department. Each separate location of a health care employment agency shall register annually with and pay an annual registration fee of five hundred dollars to the department. The department shall issue each location a separate certification of registration upon approval of registration and payment of the fee.
   2.  A health care employment agency shall do all of the following:
   a.  Ensure that agency workers comply with all applicable requirements relating to the health requirements and qualifications of personnel in health care entity settings.
   b.  Document that each agency worker meets the minimum licensing, certification, training, and health requirements and the continuing education standards for the agency worker’s position in the health care entity setting.
   c.  Maintain records for each agency worker and report, file, or otherwise provide any required documentation to external parties or regulators which would otherwise be the responsibility of the health care entity if the agency worker was employed by the health care entity.
   d.  Maintain professional and general liability insurance coverage with minimum per occurrence coverage of one million dollars and aggregate coverage of three million dollars to insure against loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence or malpractice in the provision of services by the agency or an agency worker.
   3.  a.  A health care employment agency shall not do any of the following:
   (1)  Restrict in any manner the employment opportunities of an agency worker by including a non-compete clause in any contract with an agency worker or health care entity.
   (2)  In any contract with an agency worker or health care entity, require payment of liquidated damages, employment fees, or other compensation if the agency worker is subsequently hired as a permanent employee of the health care entity.
   b.  Any contract that violates this subsection shall be unenforceable in court.
   4.  A health care employment agency shall submit a report to the department on a quarterly basis for each health care entity participating in Medicare or Medicaid with whom the agency contracts that includes all of the following by provider type:
   a.  A detailed list of the average amount charged to the health care entity for each individual agency worker category.
   b.  A detailed list of the average amount paid by the agency to agency workers in each individual agency worker category.
   5.  a.  A health care employment agency that violates subsection 1 or subsection 2 is subject to denial or revocation of registration for a period of one year and a monetary penalty of five hundred dollars for a first offense and five thousand dollars for each offense thereafter.
   b.  A health care employment agency that violates subsection 3 or that knowingly provides an agency worker who has an illegally or fraudulently obtained or issued diploma, registration, license, certification, or background check to a health care entity is subject to immediate revocation of registration. The department shall notify the agency thirty days in advance of the date of such revocation.
   c.  (1)  The managing entity of an agency for which registration has been denied or revoked under this subsection shall not be eligible to apply for or be granted registration for another agency during the two-year period following the date of the denial or revocation.
   (2)  The department shall not approve a new registration or renew an existing registration for any agency for which the managing entity is also the managing entity of an agency for which registration has been denied or revoked during the two-year period in which registration of the violating agency is denied or revoked.
   6.  The department shall establish a system for members of the public to report complaints against an agency or agency worker. The department shall investigate any complaint received and shall report the department’s findings to the complaining party and the agency involved.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to health care employment agencies. The bill defines a health care employment agency (agency) as an agency that contracts with a health care entity in this state to provide agency workers for temporary, temporary-to-hire, direct hire, or other contract or employee placements. The bill also defines “department”, “direct services”, “health care employment agency” or “agency”, “health care employment agency worker” or “agency worker”, “health care entity”, “managing entity”, and “nursing services” for purposes of the bill.
   The bill requires an agency operating in the state to register annually with the department of inspections and appeals (DIA). Each separate location of an agency is required to register annually with and pay an annual registration fee of $500 to DIA, and DIA shall issue each location a separate certification of registration upon approval of registration and payment of the fee.
   An agency is required to ensure that agency workers comply with all applicable requirements relating to the health requirements and qualifications of personnel in health care entity settings; document that each agency worker meets the minimum licensing, certification, training, and health requirements and the continuing education standards for the agency worker’s position in the health care entity setting; maintain records for each agency worker and report, file, or otherwise provide any required documentation to external parties or regulators which would otherwise be required of the health care entity if the agency worker was employed by the health care entity; and maintain professional and general liability insurance coverage in minimum per occurrence and aggregate amounts to insure against loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence or malpractice in the provision of services by the agency or an agency worker.
   An agency shall not restrict in any manner the employment opportunities of any agency worker by requiring agreement to a non-compete clause in any contract with an agency worker or health care entity; or require payment of liquidated damages, employment fees, or other compensation if the agency worker is hired as a permanent employee of the health care entity in any contract with an agency worker or health care entity. Any contract that violates these provisions is unenforceable in court.
   An agency shall submit a report to DIA on a quarterly basis for each health care entity participating in Medicare or Medicaid with whom the agency contracts that includes, by health care entity type, a detailed list of the average amount charged to the health care entity for each individual agency worker category and a detailed list of the average amount paid by the agency to agency workers in each individual agency worker category.
   An agency that fails to register in accordance with the bill or does not comply with the requirements relating to agency worker health and qualification requirements and standards, maintenance of records and the provision of documents, or maintenance of liability insurance is subject to denial or revocation of registration for a period of one year and a monetary penalty of $500 for a first offense and $5,000 for each offense thereafter. An agency that violates prohibited contract provisions or knowingly provides an agency worker who has an illegally or fraudulently obtained or issued diploma, registration, license, certification, or background check to a health care entity is subject to immediate revocation of registration. Additionally, the managing entity of an agency for which registration has been denied or revoked under the bill shall not be eligible to apply for or to be granted registration for another agency during the two-year period following the date of the denial or revocation; DIA shall not approve a new registration or renew the existing registration for any agency for which the managing entity is also the managing entity of an agency for which registration has been denied or revoked during the two-year period during which registration of the violating agency is denied or revoked.
   DIA shall establish a system for members of the public to report complaints against an agency or agency worker. DIA shall investigate all complaints received and shall report DIA findings to the complaining party and the agency involved.