Lawmakers Accuse Nurse Staffing Agencies of Price Gouging

In a letter to the White House, lawmakers urged an investigation looking into suspected price gouging by nurse staffing agencies. 

The surge in COVID-19 cases placed immense pressure on the healthcare system and hospitals in need of staff. 

The letter, acquired by the American Hospital Association, states that in September, healthcare employment fell by 17,500 positions. In addition, the pandemic’s strain on healthcare providers resulted in them relying on nurse staffing agencies to care for the rising number of COVID-19 patients. 

The letter from Congress members Mark Kelly (R-AZ) and Bill Cassidy (R-LA), and Representatives Doris Matsui (D-CA) and David McKinley (R-WV), accused the agencies of taking advantage of their patients and hospitals during a pandemic to increase profit.

“We have received anecdotal reports that the nurse staffing agencies are vastly inflating price, by two, three or more times pre-pandemic rates, and then taking 40 [percent] or more of the amount being charged to the hospitals for themselves in profits,” stated the lawmakers in the letter.

“We have heard the amounts charged to hospitals rose precipitously when the most recent wave of the COVID-19 crisis swept the nation, and the agencies seemingly seized the opportunity to increase their bottom line.”

Due to the need for larger workforce, hospitals have no option but to give in to the high rates set by staffing agencies.

The members of Congress requested the aid of federal agencies with competition and consumer protection authority to protect patients. 

“We urge you to ensure that this matter gets the attention from the federal government it merits to protect patients in dire need of life saving health care treatment and prevent conduct that is exacerbating the shortage of nurses and continuing to strain our health care system. We look forward to your response,” said the Congress members.

This conduct of price gouging has been seen throughout the pandemic as malicious actors try to exploit the COVID-19 pandemic.

In one case, Cigna Health and Life Insurance Company accused Murphy Medical Associates of price gouging COVID-19 tests.

According to the court document, the payer said the physician practices required payers to reimburse $1,500 for an in-house COVID-19 test while admitting that the tests only cost between $200 and $600 at other labs.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act requires payers to cover COVID-19 testing at no out-of-pocket cost for members regardless of the services being from an in-network or out-of-network provider.