Nursing Homes Pay ‘Exorbitant’ Agency Costs to Comply With Staffing Minimums

State staffing minimum laws are colliding with spiking agency costs, with some facilities forced to continue or increase the use of expensive temporary staff to meet state requirements.

The dissonance is especially felt in states like New York, which has the largest Medicaid reimbursement shortfall in the nation, according to Stephen Hanse, president and CEO of the New York State Health Facilities Association (NYSHFA).

“The costs are exorbitant,” Hanse said. “That low reimbursement rate directly impacts the ability of providers to recruit and retain a workforce, or in the absence of that to really seek agency.”