Nursing homes dealing with price gouging from staffing agencies
By Jason Barry
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PHOENIX (KPHO) — It’s a serious problem at nursing homes and assisted living centers in Arizona — a widespread shortage of staff members.
Heather Friebus is an administrator at one of the state’s largest skilled nursing facilities. She said they’ve gotten so desperate to fill positions they’ve turned to staffing agencies to find qualified applicants. But there’s a catch: some agencies are jacking up the cost and salary to bring workers in.
“We do need the agency’s staff,” said Friebus. “We don’t need them taking advantage of us, and I do think that’s happening right now.”
Dave Voepel is CEO of the Arizona Health Care Association. He said “price gouging” has become a serious issue, impacting nursing homes’ bottom line and patients’ care. According to Voepel, a certified nursing assistant usually makes between $15 and $20 an hour. But some staffing agencies are charging $40 to $60 an hour.
“This is getting a little exorbitant, especially with an industry and profession that doesn’t have the ability to change its income structure,” said Voepel. “A lot of other businesses can charge more, but these folks can’t do that; they’re only getting paid so much by the Feds or state.”
Efforts are now underway to get lawmakers and the Federal Trade Commission involved to set some type of cap on what employment agencies can charge. But what about other industries?
Sherrie Dvorak is the HR director with Frontline Source Group, a professional staffing company that works with businesses outside healthcare. She said they’ve kept their fees the same, despite a dramatic rise in salaries.
“I think just the nature of doing business in general in this country, in the current climate, everything is more expensive,” said Dvorak. “I don’t think there is a single industry right now that’s been untouched by the natural increase in wages.”
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