License Supplemental Health-care Staffing Agencies

The bill requires the department of public health and environment (department) to license supplemental health-care staffing agencies (staffing agencies) that employ nurses, nurse aids, physical and occupational therapists, and physical therapist and occupational therapy assistants (health-care workers). A staffing agency is defined as an entity that employs health-care workers and, for a fee, assigns them to temporary placements in nursing care facilities or assisted living residences (health-care facilities) on a temporary basis for a fee. The bill differentiates a staffing agency from a health-care worker platform where health-care workers can be listed for hire by a health-care facility.The bill includes qualifications for a license; criteria for applying for a license and the related fee; and provisions for the issuance, renewal, suspension, or revocation of the license.On and after April 1, 2023, a person operating an unlicensed staffing agency is guilty of a civil infraction and is subject to a fine and may be subject to civil penalties.The bill specifies minimum standards for staffing agencies as established by the state board of health (state board) by rule. In part, the minimum standards:

• Require that a staffing agency maintain professional liability insurance, workers' compensation insurance, and a surety bond; and
• Prohibit a staffing agency from restricting employment opportunities of its health-care worker employees, including a prohibition against requiring liquidated damages, employment fees, or other compensation from health-care workers, if the staffing agency employee is hired as a permanent employee by the health-care facility.

A staffing agency shall check the credentials of health-care worker employees and require a background check and a check of the Colorado adult protective services (CAPS) database for employees.The bill requires each staffing agency to report quarterly to the department concerning the average amount charged for services to health-care facilities and the average amount paid for those services. A staffing agency that fails to report is subject to civil fines and suspension or nonrenewal of its license.

By December 31 November 30 , 2023, the bill requires the department shall of public health and environment (department), in conjunction with the department of health care policy and financing, to submit a report to certain committees of the general assembly and to the governor concerning the impact of supplemental health-care staffing agencies (staffing agencies) on health-care facilities and the department's recommendations for caps or other limitations on service rates and amounts charged to health-care facilities for services provided by a staffing agency's health-care workers. In formulating its recommendations, the department shall conduct a stakeholder process with affected providers and agencies.The bill requires the department to maintain a current list of licensed staffing agencies and make the list publicly available on the department's website.The bill creates a cash fund for licensing fees and penalties.The bill requires staffing agencies to complete initial and annual certification with the department of labor and employment's unemployment insurance division prior to operating the staffing agency. The staffing agency shall report quarterly to the department of labor and employment, commencing with a report on or before April 30, 2023, regarding, in part, information concerning the average amount charged during the reporting period to a health-care facility for each category of health-care worker and the average amount paid during the reporting period to health-care workers providing services. The department of labor and employment shall notify a staffing agency if the report is late or noncompliant and shall impose a fine for late or noncompliant reporting. The department of labor and employment shall forward the report to the department for preparation of the report and recommendations to certain committees of the general assembly and to the governor concerning staffing agency employee wages and contract rates.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)