Clamor to cap travel-nurse pay could keep rural nurses at local hospitals

Many registered nurses, feeling overwhelmed and underpaid during the pandemic, have jumped at the chance to double or triple their salaries as travel nurses. Cash-strapped rural hospitals are having a hard time retaining them. "In a nationwide survey late last year, 99% said they were experiencing staffing shortages," Melissa Phillip reports for the Houston Chronicle.

But some lobbyists and legislators are calling for an investigation in hopes of capping travel nurses' compensation; if successful, that could help stanch the flow of rural nurses to wealthier urban hospitals that can better afford to pay travel nurses' higher salaries.

"In the last few months, several groups, including the American Hospital Association, the American Health Care Association/National Center for Assisted Living and 200 members of Congress, have called for an investigation into claims that agencies that place travel nurses around the country have been 'price gouging' hospitals in need of staff," Chabeli Carrazana reports for The 19th. "The AHA has requested the Federal Trade Commission investigate the agencies, and late last month, a letter signed by a bipartisan group of legislators also asked the White House to investigate the claims."

Two representatives from largely rural districts—Democrat Peter Welch of Vermont and Republican Morgan Griffith of Virginia—"wrote that they have received reports saying staffing agencies have inflated prices by 'two, three or more times pre-pandemic rates' while taking 40 percent or more being charged to hospitals in profit," Carrazana reports. "At least eight private-equity firms have bought at least seven staffing agencies since early 2021, according to a report in STAT News."

"The White House did not comment on whether it was responding to the contents of the letter, and the Federal Trade Commission also declined to comment on whether an investigation was underway," Carrazana reports.