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Murphy, Miller-Meeks Introduce Bill to Study Impact of Travel Nursing Agencies on Health Industry in America

July 28, 2022

Washington, D.C.Today, GOP Doctors Caucus Reps. Greg Murphy, M.D. (NC-03) and Mariannette Miller-Meeks, M.D. (IA-02) introduced the Travel Nursing Agency Transparency Study Act to examine the impact of nursing agencies on the health industry during the COVID-19 pandemic. Specifically, the bill would instruct the U.S. Government Accountability Office (GAO) to conduct a study and report to Congress on any potential price gouging and boost transparency regarding nursing agency payouts from health care institutions. This is a House companion to bill introducedby North Dakota Sen. Kevin Cramer.

"As a practicing surgeon of more than 30 years, I know that our nurses serve on the frontlines of health care and go above and beyond to care for our patients -- especially during the COVID-19 pandemic," said Rep. Murphy. "Unfortunately, there have been reports of travel nursing agencies taking advantage of the pandemic with questionable business practices that are increasing costs and severely hurting our health care providers and patients alike. Our bill will examine the impact of these practices on the health care industry and ensure transparency moving forward."

"The COVID-19 pandemic has exacerbated a nursing crisis that is affecting hospitals, which has caused them to rely on travel nursing agencies, and rural hospitals in Iowa are no exception." said Rep. Miller-Meeks, "As a physician and former Iowa Director of Public Health, I believe that it is imperative for there to be transparency to ensure that travel nursing agencies are acting in the best interests of nurses and patients, and not price gouging at the expense of our healthcare system."

"Travel nurse staffing agencies have taken advantage of hospitals and health systems during the pandemic by inflating prices to unsustainable levels. Many hospitals and health systems, including those in rural communities, are now facing serious financial and operations concerns as a result of increased costs for labor. We thank Reps. Greg Murphy, M.D., and Mariannette Miller-Meeks for their leadership on ensuring access to care in their communities," said Lisa Kidder Hrobsky, AHA Senior Vice President of Federal Relations, Advocacy, and Political Affairs.

"North Carolina hospitals and health systems are facing the worst staffing shortage since the beginning of the pandemic. Under normal circumstances, hospitals turn to staffing agencies to help fill temporary gaps, but today desperate hospitals face unprecedented and unsustainable pricing levels due to the rates that many staffing agencies are charging. Both public and private hospitals are concerned about how these rates are set. They are also questioning the ethics and legality of recruitment practices being used by some staffing agencies. Skyrocketing prices for travel nurses and other supplemental staffing affect the cost of care for all. Passage of this legislation would ensure there is greater transparency along with a better understanding around the business practices of these staffing agencies," said Cynthia Charles, Vice President, Communications and Public Relations, North Carolina Healthcare Association.

"Iowa hospitals have continued to provide high-quality care for Iowans as hospitalizations have increased over the past two and half years. Given the staffing challenges over that period, hospitals have been forced to rely on workforce provided by traveling nurse staffing agencies that have drastically increased hourly rates to levels never experienced by hospitals. Passage of this legislation would ensure there is greater transparency along with a better understanding around the dynamics and business practices of these staffing agencies,"said Chris Mitchell, President and CEO, Iowa Hospital Association.

Read the bill text HERE.

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Issues:Health Care