February 1, 2023


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Iowa Passes New Demands for Health and fitness Treatment Employment Organizations | Dentons

3 min read

Laws passed this session in the Iowa Typical Assembly adopts new necessities and limits for health treatment work companies that deliver wellness care entities with agency employees who provide nursing or other services to consumers via particular person-to-particular person make contact with. There is an exception of doctors and nurse practitioners. A “health treatment entity” is a certified or licensed facility, group, or agency operated to present providers or supports to satisfy the overall health or individual care wants of customers.

The new legislation necessitates a wellness care employment company:

  • To sign-up each year with the Iowa Section of Inspections and Appeals (“DIA”)
  • Refrain from limiting agency staff from pursuing employment opportunities, together with with the health care entity they’ve been positioned
  • Chorus from such as in contracts with health and fitness care entity clients no-retain the services of clauses protecting against the shopper from selecting the agency employee
  • Refrain from together with in any settlement with an agency employee or health and fitness care entity shopper any liquidated damages, employment service fees, or other penalties or costs if the company worker is hired by the health and fitness treatment entity
  • Ensure company workers comply with all wellbeing necessities and requirements of personnel delivering services in health treatment entity options
  • Document agency workers fulfill all licensing, certification, education, schooling, and wellbeing demands for their position and offer documentation to regulators and other external events which would otherwise be the accountability of the wellness treatment entity if the included worker was right utilized by it
  • Sustain professional liability insurance policies masking company employees with limitations of no less than $1 million for each incidence and $3 million in the mixture

A wellness care employment company furnishing company staff to Medicare or Medicaid qualified health care entities need to also post quarterly experiences to DIA outlining the normal quantity billed to the entity and the common sum compensated to the agency staff. Any overall health treatment employment company that violates the limits on “no-employ the service of,” liquidated damages, or other clauses proscribing the work chances of agency employees or who knowingly gives an agency employee who has illegally or fraudulently acquired a license, certification, registration, or background verify will have its registration to do organization in Iowa revoked and the agency and the agency’s controlling entity will be restricted from executing enterprise in Iowa as a health treatment employment company for two decades.

The new demands are powerful July 1, 2022 having said that, later on laws which was eventually passed by both of those the Residence and Senate, but which has still to be signed by Governor Reynolds, would make the provisions restricting companies from which includes or enforcing non-competes, “no-hire” clauses, and liquidated damages provisions powerful for contracts entered into on or following January 1, 2019.

The laws is broadly drafted and although doctors and nurse practitioners are not considered “agency workers” all other people today supplying nursing or companies demanding human being-to-human being make contact with with shoppers are regarded “agency workers.” This would appear to include physician assistants, nurses, aides, and radiology and lab techs. The definition of a “health treatment work agency” is also fairly broad such as organizations that offer temporary, momentary-to-retain the services of, direct deal, or other deal or staff placements. It is unclear no matter whether the new legislation will implement to overall health treatment suppliers who may well enter into shared staffing or worker lease preparations with other providers who are regarded as wellness care entities under the new laws.

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