In today’s evolving healthcare landscape, staffing apps have become a convenient solution for facilities facing workforce shortages. Like traditional staffing agencies, these platforms streamline the process of finding qualified professionals, providing access to a wide variety of credentialed professionals without engaging in the process of posting positions, interviewing, and onboarding them directly. These apps offer a variety of benefits that help take the day-to-day responsibilities of finding medical professionals off of the practice, by doing things such as conducting initial background checks and verifying licensure through systems like Nursys, freeing up valuable staff time for more pressing administrative tasks like scheduling patient visits and billing and collections.
However, many staffing apps have a critical gap—after the initial screening, many do not conduct ongoing monitoring, such as monthly OIG exclusion checks or subsequent background investigations. This oversight can expose healthcare providers to significant compliance and liability risks.
The Compliance Gaps in Staffing Apps
While these platforms offer an efficient way to connect with healthcare professionals, they often fall short of meeting the rigorous compliance standards required in the industry. Common issues include:
- Lack of Ongoing OIG Exclusion Monitoring: The Office of Inspector General (OIG) maintains a list of individuals and entities excluded from participating in federal healthcare programs. If a provider unknowingly hires or contracts with an excluded individual, they risk severe penalties, including fines and potential loss of Medicare and Medicaid reimbursement.
- Failure to Conduct Subsequent Background Checks: Many staffing apps conduct a one-time background check upon onboarding a professional, but without continuous screening, new criminal activity or disciplinary actions may go unnoticed.
- Reliance on Self-Reported Licensure Issues: While apps may pull information from Nursys regarding license suspensions or revocations, there is often no real-time monitoring. This means a professional who loses their license after initial onboarding could still be working shifts through the app until the provider independently verifies their credentials.
Legal and Financial Risks for Healthcare Providers
Healthcare facilities and providers using staffing apps must recognize that compliance responsibilities do not shift to the platform. If an excluded or unqualified individual provides services, the liability falls on the hiring entity, leading to:
- Civil Monetary Penalties (CMPs): The OIG imposes steep fines on providers who employ excluded individuals.
- Medicare and Medicaid Repayment Obligations: Any claims submitted for services rendered by an excluded individual may be deemed improper and require repayment.
- Reputational Damage: Violations of hiring regulations can erode trust among patients, payors, and regulatory agencies.
- Potential Lawsuits: If a provider hires an individual with a criminal history that was not properly vetted, they may face negligent hiring claims.
Other legal issues regularly arise, such as issues stemming from misclassification of such workers as independent contractors.
How We Can Help
Our firm helps healthcare providers navigate employment-related compliance risks through the following services:
Contract Review: We analyze agreements with staffing platforms and agencies to ensure adequate indemnification clauses and compliance provisions are in place, and negotiate with staffing providers to ensure clear agreement on how to share liability and classify workers and protections against the disclosure of confidential and protected health information,. Our highly skilled attorneys recognize gaps in standardized user agreements that may leave providers vulnerable to legal and financial risks. We advise clients on how to mitigate these issues by negotiating stronger contractual protections, requiring ongoing compliance monitoring, and ensuring liability is properly allocated in case of regulatory violations.
Compliance Program Development: We assist in drafting and implementing policies requiring ongoing monitoring, including monthly OIG exclusion checks and periodic background screenings.
Regulatory Guidance: We provide counsel on best practices for vetting temporary staff and ensuring ongoing compliance with state and federal laws.
Taking Proactive Steps
Healthcare providers cannot afford to take a passive approach when using staffing apps. By implementing internal compliance measures and ensuring contracts with staffing services contain adequate protections, providers can minimize liability exposure.
If your facility relies on staffing apps, now is the time to review your processes. Contact us today to discuss how we can help safeguard your operations against potential risks and ensure compliance with all regulatory requirements.
Associate
General Counsel
