AG Cracks Down on Staffing Agencies Overcharging, Misleading Nursing Homes in Massachusetts

As the staffing shortage among nursing homes continues to derail sector recovery, states are taking additional steps to ease some workforce challenges, namely, staffing agencies overcharging for workers.

In Massachusetts, Attorney General Joy Campbell issued an advisory to all temporary nursing agencies operating in the state, reminding them of what rates they may charge to long-term care facilities and warning of consequences if rules are violated.

“Today’s advisory serves as a resource to these agencies and a reminder that my office stands ready to act if temporary nursing agencies attempt to overcharge or mislead long-term care facilities in the Commonwealth,” added Campbell.

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The advisory was issued on Thursday, in light of allegations received by the state office of continued attempts to overcharge, demand additional fees or enter misleading arrangements with operators.

Complaints received by the AG’s office include temporary nursing agencies, claiming rates above the maximum limit, requesting holiday pay for services rendered on dates not listed as agreed-to holidays in contracts between entities, and attempting to improperly classify employees as travel nurses or fixed-term employees.

Staffing agencies have also allegedly tried to charge beyond the maximum rate for days of inclement weather, or based on the number of current cases of Covid in a facility, as well as charge a facility for bonuses offered through the agency.

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“Affordability continues to be a major challenge for Massachusetts residents and their loved ones seeking long-term care, which is why temporary nurse staffing agencies need to adhere to state regulations,” Campbell said in a statement.

Additional charges for agency staff cannot be passed onto the resident or their family, as nursing homes receive reimbursement primarily through federal and state dollars.

All rates must be consistent with Massachusetts Executive Office of Health and Human Services (EOHHS) rules and regulations, according to a statement issued by Campbell’s office.

Rates are broken down between registered nurses (RNs), licensed practical nurses (LPNs) and certified nurse aides (CNAs), and health care setting, according to EOHHS documents. “Health service areas” of the state also factor into calculating the maximum rate for regions, including the western portion of the state, central portion, Merrimack Valley, Greater Boston area, southeastern portion and North Shore.

Noncompliance with EOHHS triggers the state AG’s office to investigate and prosecute staffing agencies. Individuals are encouraged to contact the state Attorney General’s Medicaid Fraud Division, or state Department of Public Health, Division of Health Care Facility Licensure and Certification.

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