During the COVID pandemic, more and more long-term care providers turned to staffing agencies to fill shifts and staffing shortfalls. Indiana Governor Eric Holcomb recently signed Indiana House Enrolled Act No. 1461 (the “Staffing Agency Law”) into law. The Staffing Agency Law contains several changes to laws that impact Indiana long-term care providers and requires the Indiana Department of Health (“IDOH”) to establish and administer the registration of a temporary health care service agency. These changes are effective July 1, 2023.

Temporary Health Care Services Agency

Under the Staffing Agency Law, a “temporary health care services agency” means a person engaged for hire in the business of providing or procuring temporary employment in health care facilities for health care personnel. The term does not include an individual who only engages on the individual’s own behalf to provide services on a temporary basis to health care facilities.

Registration of Temporary Health Care Services Agencies

The Staffing Agency Law calls for the IDOH to establish a temporary health care services agency registry. The registry will include an application that requires the applicant to provide at least the following:

  • The name and address of each person that has an ownership interest in the temporary health care services agency.
  • If the owner is a corporation or other business entity: (A) the name of the state in which the business is incorporated, a copy of the articles of incorporation or association or similar documentation and any amendments or bylaws; (B) the location of its principal place of business; and (C) the names and addresses of its directors and officers.

Fee and Rate Disclosures

Under the Staffing Agency Law, the IDOH’s registry will also require that a temporary health care services agency provide the IDOH a schedule or description of all fees, charges, or commissions that the temporary health care services agency expects to charge and collect for services. If a temporary health care services agency changes the agency’s schedule or description of fees, charges, or commissions that were previously reported to IDOH, the temporary health care services agency must file the changes with the IDOH at least 30 days before the changes are set to be effective.

Upon request by the IDOH, a person that owns or operates a temporary health care services agency must provide to the IDOH a copy of all forms and contracts related to the fees, charges, or commissions expected to be collected by the temporary health care services agency from health care personnel or a health care facility.

Disclosure to Health Care Facilities

Upon written request to the temporary health care services agency, the temporary health care services agency must provide the following to a health care facility for any health care personnel supplied by the temporary health care services agency:

  • Documentation that each health care personnel meets all licensing or certification requirements for the profession in which the health care personnel will be working; and
  • Proof of applicable criminal record checks for each health care personnel if required by law.

Rights of Health Care Personnel

Under the Staffing Agency Law, a temporary health care services agency may not do the following:

  • Restrict in any manner the employment opportunities of health care personnel.
  • Publish, cause to be published, or verbally make any false, fraudulent, or misleading notice, advertisement, or statement, or give any false or misleading information to a health care facility concerning any health care personnel or the health care personnel’s qualifications to provide services to the health care facility.
  • Recruit potential health care personnel on the premises of a health care facility.
  • Require, as a condition of employment, assignment, or referral, that health care personnel recruit new health care personnel for the temporary health care services agency from the permanent employees of the health care facility to which the health care personnel was employed, assigned, or referred.

Oversight of Temporary Health Care Services Agencies

The Staffing Agency Law gives the Indiana Attorney General’s Division of Consumer Protection the power to investigate a complaint against a temporary health care services agency licensed in Indiana.

Practical Takeaways

  • Indiana long-term care providers who engage staffing agencies need to review and revise their contracts with those agencies.
  • Staffing agencies need to address reporting and disclosure requirements ahead of the Staffing Agency Law’s effective date.
  • Staffing agencies need to revise their practices and procedures to comply with the new law.