Obamacare preventive protection of most cancers, diabetes, HIV struck by decide

A pharmacist writes a prescription in New York City.

Yvonne Hemsey | Hulton Archives | Getty Images

A federal judge on Thursday struck down an Obamacare mandate that requires most private health insurance plans to offer free screening services, which include everything from screening for certain types of cancer and diabetes to drugs used to prevent HIV.

The ruling by Judge Reed O’Connor of the US Northern District Court of Texas applies to medications, screenings and other forms of health care recommended by an independent panel of experts called the Preventive Services Task Force.

Under the Affordable Care Act, private health plans were required to cover mammograms for breast cancer in women ages 50 to 74, as well as screening for colon, cervical, and lung cancer.

The mandate also included drugs that prevent HIV infection in high-risk groups, called pre-exposure prophylaxis, or PrEP. Most private plans also had to cover screening for certain sexually transmitted infections, such as chlamydia and gonorrhea.

Obamacare requirements included screening for type 2 diabetes, among many other forms of health care.

Lawrence Gostin, a leading health law expert, said full coverage of these essential services with no out-of-pocket expenses is now in jeopardy.

“The overall picture is crystal clear. Virtually everything Americans rely on to keep themselves and their families healthy and prevent disease will no longer be required under the Affordable Care Act,” said Gostin, a professor at the Georgetown University Law Center.

Here’s a full list of precautionary measures that the judge’s ruling is likely to apply to

The Biden administration is likely to appeal the verdict. The US Department of Health and Human Services, which oversees Obamacare regulations, did not immediately respond to a request for comment.

Senate Majority Leader Chuck Schumer, DN.Y., called on the Biden administration to immediately appeal the verdict. He also called on insurers to publicly commit to free preventive care.

“Not only is this judgment misguided, it is downright dangerous and could cost lives,” Schumer said.

Gostin said most private insurance plans will likely continue to cover these preventative health services, but will charge deductibles and co-payments.

“It will primarily affect working-class Americans,” he said, noting that many people will forgo basic health care because they cannot afford the out-of-pocket costs.

O’Connor’s ruling said that coverage requests based on recommendations from the Preventive Services Task Force were unlawful because the panel’s members were not nominated by the President and confirmed by the Senate. Therefore, the federal government cannot enforce a supply mandate on the basis of these recommendations, he said.

The Prevention Services Task Force is made up of 16 volunteers who are doctors, nurses, public health experts, and other medical professionals. They are appointed by the director of a federal organization called the Agency for Healthcare Research and Quality.

The judge’s ruling came after two Christian companies and several individuals sued the federal government in 2020. The lawsuit argues that the precautionary mandate violates their freedom of religion because it includes coverage for drugs to prevent HIV infection.

Plaintiffs allege in their lawsuit that the PrEP mandate “compels religious employers to insure drugs that facilitate and encourage homosexual behavior, prostitution, sexual promiscuity and injecting drug use.”

They also alleged that the Preventive Services Task Force’s recommendations were invalid because the process used to select the panel’s members violated the U.S. Constitution’s nomination clause.

O’Connor, in the same decision Thursday, dismissed an argument by plaintiffs to also overturn the mandate requiring Obamacare-compliant birth control coverage plans without out-of-pocket expenses.

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File quarterly revenues crown a robust 12 months

The New York Stock Exchange is named Planet (NYSE: PL) on Wed December 8th to celebrate the listing. To mark the occasion, Will Marshall, Co-Founder and CEO, and Robert Schingler Jr., Co-Founder and Chief Strategy Officer, along with NYSE President Stacey Cunningham, will ring The Opening Bell®.

NYSE

planet on Wednesday delivered another record sales quarter and neared the high end of its full-year sales guidance.

“The fourth quarter wrapped up an incredible year for Planet. For the full year, we nearly tripled our revenue growth rate,” said Will Marshall, co-founder and CEO of Planet, in a press release.

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The satellite imagery and data analytics company reported an adjusted EBITDA loss for the fourth quarter, up from $16.7 million in the year-ago period to $17.7 million. Net loss narrowed to $37.8 million, or 14 cents a share, from $46 million, or 26 cents. Planet had revenue of $53 million during that period, up 43% from $37.1 million a year earlier.

For the full year, Planet’s revenue was $191.3 million — at the high end of the previously forecast range of $188 million to $192 million.

Planet follows a fiscal year calendar ending on January 31st.

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Planet’s chief financial officer, Ashley Johnson, noted that the company ended the quarter with $408.8 million in cash.

The company also makes its sixth acquisition to date, signing an agreement to acquire Slovenian satellite data analytics platform Sinergise. Financial terms were not disclosed.

Planet said the acquisition of Sinergise, a long-term partner, should improve its access to European markets.

If Alvin Bragg flips Allen Weisselberg, the lights will likely be off for Trump

Former Trump Organization CFO Allen Weisselberg has dropped the attorneys paid by the former president. If he made a deal with prosecutors, Trump would have a new big problem.

Video from MSBNC reporting that Weisselberg is changing lawyers:

Fascinating… Weisselberg’s attorneys were Mary Mulligan and Nicholas Gravante and their fees were paid by the Trump Organization.

Recall: During the criminal proceedings against the Trump Org. late last year, the Trump Org. blamed Weisselberg for everything. https://t.co/8qh27aZNPo

— Katie S. Phang (@KatiePhang) March 30, 2023

The nation has been down this path with Trump legal news so many times that it’s wise to exercise a degree of caution, but Weisellberg is the big fish in terms of witnesses who could implicate Trump in some very serious potential crimes.

Bragg had left the door open to filing more charges against the former Trump CFO, and perhaps after months in prison, Weisselberg has had enough. Weisselberg is 75 years old, but also Trump’s primary firewall. As long as Trump’s former right-hand man remains silent, prosecutors will struggle to prove Donald Trump’s potentially more serious financial crimes.

No one knows what that means definitively at this point, but Bragg may have made more headway with Weisselberg than other prosecutors.

Historically, when witnesses drop their Trump-paid attorneys, it usually bodes badly for the failed former president. If Weisselberg cooperates, it means Trump’s legal threat has gone from bad to absolute disaster.

Jason is the managing editor. He is also a White House press pool and congressional correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public policy with a specialization in social reform movements.

Awards and professional memberships

Member of the Society of Professional Journalists and the American Political Science Association

Due courtroom circumstances can rule on the legality of mifepristone

Two federal judges are poised to soon issue rulings in dueling cases that could dramatically affect access to the abortion pill mifepristone.

In Washington state, US District Judge Thomas Rice is considering whether to scrap federal regulations on mifepristone that make access difficult even when abortion is legal. He’s also considering issuing an injunction that would prevent the Food and Drug Administration from taking action to take the pill off the market or reduce its availability.

In Texas, US District Judge Matthew Kacsmaryk is considering ordering the FDA to withdraw mifepristone from the US market. Medical groups, which oppose abortion, sued the FDA in November to overturn the drug’s more than 20-year-old approval.

Rice heard arguments Tuesday in Spokane from the FDA and the legal team representing a coalition of Democratic attorneys general who filed the lawsuit against the agency. The entire hearing lasted less than an hour.

Kacsmaryk heard arguments in the Texas case earlier this month and said he would issue an order as soon as possible. Kacsmaryk was appointed by former President Donald Trump, and Rice was appointed by former President Barack Obama.

“When we made our complaint, we were obviously well aware of what was going on in Texas. That’s just the legal world we live in,” said Washington State Attorney General Bob Ferguson, who is leading the lawsuit to keep mifepristone on the market and expand access to the drug.

The US is now braced for the possibility that two federal district courts could issue conflicting rulings on the abortion pill, potentially adding further confusion to an already complex web of state regulations on mifepristone.

The cases also suggest that the Supreme Court could eventually become embroiled in the escalating legal battle over the most commonly used method of abortion in the United States

“If we get two diametrically opposed rulings on what the FDA should do, it will almost certainly go to the US Supreme Court,” wrote Glenn Cohen, a former attorney with the Civil Division of the Justice Department and a Harvard Law School professor, in an email. Cohen signed a brief in the Texas case supporting FDA approval of mifepristone.

Ferguson said the Washington case urges the judge to expand and protect access to mifepristone, particularly in the 17 states plus the District of Columbia that are parties to the lawsuit. In the Texas case, anti-abortion medical associations are asking the judge to remove the abortion pill from the US market statewide.

If the Texas judge rules first and orders the FDA to take mifepristone off the market, the Washington judge could still issue an order that at least preserves access in the 17 states and DC, Ferguson said.

“The federal judge in Washington will rule on Washington, and that would preserve it in Washington State and the plaintiff states,” Ferguson said. “But you would have competing court orders, and sometimes that’s resolved on appeal.”

“You could have a situation where it’s not available in some states and it’s available in some states. All of these things are possible. But a lot depends on how those judges write those decisions,” Ferguson said.

The FDA has placed restrictions on mifepristone under a government surveillance program since it approved the pill in 2000, but the agency has gradually eased those restrictions over the years. In January, the requirement for patients to receive the pill in person was finally ended, allowing mifepristone to be mailed. The FDA also allowed retail pharmacies to begin dispensing the pill for the first time.

But the agency has retained some caveats. Patients must sign a form outlining the risks of mifepristone, and they must obtain a prescription from a health care provider certified under the federal surveillance program. Pharmacies must also be certified under this program in order to dispense the drug to the patient.

Ferguson and the other attorneys general are asking the Washington state judge to lift those restrictions. The 17 states include Arizona, Colorado, Connecticut, Delaware, Illinois, Michigan, Nevada, New Mexico, Oregon, Rhode Island, Vermont, Hawaii, Maine, Maryland, Minnesota, Pennsylvania and Washington.

“It only serves to make mifepristone harder for physicians to prescribe, harder for pharmacies to fill, harder for patients to access, and harder for plaintiff states and their healthcare providers to distribute,” the attorney general told the judge in their complaint.

Cohen said the lawsuit in Washington raises questions about whether the Biden administration would appeal a decision ordering the FDA to drop mifepristone restrictions.

The White House may not want to explain why it defends barriers to medical abortion, even though the FDA likely wants to protect its regulator, Cohen said. It’s possible that the Biden administration would not appeal if they lost in Washington state and simply dropped remaining restrictions on the abortion pill, he added.

However, Ferguson noted that on Tuesday the government decided to defend the restrictions in court: “It was not like they said, ‘Ferguson is right, we shouldn’t have these restrictions.’ They fight it, they defend it. So what they would do if we prevailed, I don’t know.”

Rachel Rebouche, a reproductive health law expert at Temple University, said the Washington and Texas cases raise the prospect of Supreme Court involvement. Rebouche signed a brief in the Texas case defending the FDA’s approval of mifepristone.

When district court cases in Washington and Texas are challenged in the 9th Circuit and 5th Circuit Courts of Appeals, respectively, and those circuit courts return conflicting judgments, “then those are issues that take precedence for the Supreme Court,” Rebouche said.

A narrow majority of the 9th Circuit Court justices were nominated by Democratic presidents, while an overwhelming majority of the 5th Circuit Court justices were nominated by Republican presidents.

Oregon Attorney General Ellen Rosenblum, who co-chaired the lawsuit in Washington with Ferguson, said she was concerned that the case would fall after the court’s decision last year to uphold abortion rights under Roe v. Wade would end up in the Supreme Court.

“We don’t necessarily want to make this a US Supreme Court case,” Rosenblum said.

Labcorp to pay $2.1 million to settle Division of Protection lawsuit

The Laboratory Corporation of America will pay $2.1 million to settle allegations that it overcharged the Defense Department for genetic testing involving children and fetuses, the Justice Department announced Monday.

A former Lab Corp Whistleblower-turned employee Donna Hecker-Gross sued the diagnostic testing company under the False Claims Act on behalf of the federal government in 2018. The civil complaint was filed in the US District Court for the District of Maryland.

Hecker-Gross will receive $357,000 as part of the settlement, according to the DOJ.

Hecker-Gross’ allegations involved genetic testing performed under a contract LabCorp struck with the Department of Defense in 2012. Under the terms of the contract, the company provided laboratory testing for Department of Defense military treatment facilities around the world, including testing it paid genetic testing company GeneDx to perform.

Hecker-Gross alleged that LabCorp overcharged and double- or triple-billed DOD for genetic testing performed by GeneDx. Thirty-eight tests were overcharged by $210,959, including $113,525.50 for 21 tests billed between March 2016 and January 2017 alone, according to the lawsuit.

The lawsuit alleges that in 2017, employees at Walter Reed National Military Medical Center first questioned LabCorp about charges for a particular test that screens for genetic abnormalities in children and fetuses. The test costs between $5,000 and $10,000, the lawsuit says.

The test typically performs two or three analyzes on DNA samples from a child or fetus and one or both biological parents. Under the contract, LabCorp pays GeneDx for only one test and should only charge the DOD for a single test and a small fixed fee.

But Walter Reed’s staff noted that LabCorp billed the military facility for analysis of DNA samples from parents in addition to analysis of samples from children or fetuses, according to the lawsuit. LabCorp insisted the company had appropriately billed for the tests until Hecker-Gross sought confirmation of GeneDx’s billing practices, according to the lawsuit.

LabCorp then found that it had billed the DOD “two or three times what it paid for the test and breached the contract with the difference,” according to the lawsuit.

Even after that discovery, LabCorp conducted only a limited investigation that “did not reveal the magnitude and scope of the problem,” according to the lawsuit. The company only reviewed billing records for tests performed at Walter Reed between March 2016 and July 2017, according to the lawsuit, despite years of testing at military treatment facilities worldwide, according to the lawsuit.

LabCorp also did not fail to pay the department back for overbilling it uncovered, the lawsuit says. It only offered Walter Reed a credit for double- or triple-billed tests from January 2017, with a promise to fix the problem in the future.

Hecker-Gross repeatedly complained about LabCorp’s improper billing to her line managers until the company fired her on Aug. 8, 2017, the lawsuit states.

“She believed that LabCorp was responsible for repaying all the overcharges, not just for the short period of time they offered,” Peter Chatfield, the attorney representing Hecker-Gross, told CNBC. “She pressured her to pay for everything and she got fired for that. That made her come forward as a whistleblower.”

Chatfield noted that Hecker-Gross was “pleased” with the settlement.

Scott Moreland, special agent in charge of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office, said in the Justice Department’s press release that he was “very pleased” with the announcement of the settlement.

“This is a true testament to our continued commitment to working closely and seamlessly with our world-class law enforcement community to protect the financial interests of the U.S. Army and the overall United States government,” he said.

LabCorp said in a statement to CNBC that the company does not comment on litigation.

“It is important to note that this settlement is not an admission of wrongdoing, and Labcorp has vigorously denied the allegations in this case,” the company said. “Labcorp entered into the settlement to avoid the costs and burden of litigation.”

Shares of the Burlington, North Carolina-based company were relatively flat following the Justice Department’s announcement.

LabCorp is one of the nation’s largest providers of clinical laboratory services and has become best known for manufacturing and distributing Covid test kits during the pandemic.

For more than two decades, the company has faced a number of lawsuits related to its billing practices. Just last month, the company agreed to pay $19 million to resolve allegations that it violated the False Claims Act by making false claims on Medicare. In 1996, LabCorp agreed to pay $187 million for fraudulently charging the government for unnecessary testing of elderly patients.

Eva Marcille is submitting for divorce from Michael Sterling after nearly 5 years

The Shade Room has obtained court documents confirming reality TV star Eva Marcille, 38, has filed for divorce from her husband Michael Sterling, 41. The couple have been married for five years and have two children together.

According to court documents filed in the Superior Court of Fulton County on March 23, 2023, Eva cited the marriage as “irretrievably broken up” and stated that there was no possibility of a reconciliation.

Eva Marcille Sterling Divorce 1 1

Eva is asking for primary custody and child support in divorce documents

Marcille’s divorce filing includes details of the couple’s living arrangements and custody of their children.

The documents state that the couple’s children have lived with Eva and Michael at the conjugal residence in Alpharetta, Georgia, for at least five years.

Eva claims in her petition that she is a “fit and proper person” to have legal and primary physical custody of the children, with ultimate decision-making authority over all matters – and calls for primary custody to be granted on a permanent basis.

In addition, Eva has requested temporary and permanent child support under Georgia law.

Couple posted on Valentine’s Day, six weeks before their divorce

A month and a few days before Eva filed for divorce from her husband Michael, the couple seemed strong and happy.

On Valentine’s Day, the wife posted a photo to her Instagram account with her husband and captioned the moment, “Happy Valentine’s Day forever and ever @miketsterling.”

Michael shared his own tribute to Eva on Instagram, calling it his “Forever Valentine.”

Eva Marcille and Michael Sterling’s marriage lasted five years

Eva Marcille rose to fame as the serial winner in 2004’s America’s Next Top Model before joining The Real Housewives Of Atlanta in 2015.

The model has a daughter from a previous relationship with Kevin McCall. The couple separated in 2014 and Eva was given custody of their child. In August 2019, Eva announced that she had legally changed her daughter’s surname from McCall to Sterling after the couple’s wedding.

Eva and Michael Sterling, an Atlanta-based attorney, got engaged in December 2017 and exchanged vows on October 7, 2018. The couple welcomed two sons, Michael Todd Sterling Jr. and Maverick, in April 2018 and September 2019 respectively.

So far, neither Eva Marcille nor Michael Sterling have publicly acknowledged the divorce petition.

The US-China tech rivalry will put Chinese language firms to the take a look at

Chinese companies will continue to face intense scrutiny as US-China tensions and competition are unlikely to ease anytime soon, an analyst told CNBC.

“There is this intense geopolitical competition. Chinese companies are under a ton of scrutiny, in part because of their ties to the Chinese Communist Party,” Lindsay Gorman, senior fellow for emerging technologies at the German Marshall Fund’s Alliance for Securing Democracy, told CNBC’s “Squawk Box Asia” Tuesday.

Last Thursday, TikTok CEO Shou Zi Chew was questioned by lawmakers for five hours about the app’s ability to operate independently of its Chinese parent company ByteDance.

The short-video app is facing a potential ban in the US over concerns that American user data could end up in the hands of the Chinese government. Chew said China-based ByteDance employees may have access to some US data from TikTok.

It’s really intense competition [between the U.S. and China]. This is why both sides are fighting so hard to ensure their own technologies are victorious.

Lindsay Gorman

Senior Fellow, Alliance for Securing Democracy of the German Marshall Fund

“I think it’s important to look at the broader context of the Chinese Communist Party’s efforts to interfere in democratic institutions to suppress free speech and democracies,” Gorman told CNBC.

China had said it would “strongly oppose” a forced sale of TikTok by its parent company ByteDance hours before Chew testified before the US Congress.

Under the sea

Both countries are also competing for control of undersea cables – the backbone of the internet. More than 99% of the world’s communications are carried over fiber optic cables, most of it under water.

Huawei and China Telecom have built underwater cable networks around the world.

The US and China are vying for technological dominance “because of this fundamental internet infrastructure,” according to Gorman.

“Whoever is building the infrastructure and gaining dominance in industries that we are building today and for the future — whether it’s artificial intelligence, undersea cables or quantum information systems, they’re going to be the leaders of the future and the world,” he said .

The battle for the internet, under the sea

“That’s why both sides are fighting so hard to let their own technologies win,” she added, noting that US-China technological competition “is really not going away.”

The US, concerned that China is spying on undersea cables, has obstructed several Chinese projects to build undersea cable networks since 2020, according to Reuters.

On Monday, the US Congress passed the Undersea Cable Control Act to prevent countries like China from acquiring “American-made goods and technology used in the development and support of undersea cables.”

This really speaks to how intertwined the technological ecosystems of the US and China are and have been.

Lindsay Gorman

Senior Fellow, Alliance for Securing Democracy of the German Marshall Fund

“Whether it’s TikTok or a spy balloon, the US has been caught flat-footed in its fight against Chinese influence. We cannot allow undersea cables to become another example of this trend,” US Congressman Brian Mast said in the release.

“We cannot empower the same China that wants to overthrow America and put communism on top to control one of the world’s most powerful communications tools. We must protect this infrastructure and technology that Americans rely on every day,” Mast said.

Responding to the passed law, Chinese Foreign Ministry spokesman Mao Ning said: “We oppose the US overextending the concept of national security to hinder foreign companies and abuse state power to enforce normal market rules and regulations disrupt edge’ does not legitimize bad behavior.”

‘intertwined’

After Thursday’s TikTok hearing in Congress Apple Chief Tim Cook visited China over the weekend, where the CEO praised China’s development and its long-standing relationship with the iPhone maker, according to local media reports.

The Tiktok hearing was an

“It really speaks to how intertwined the U.S. and China’s technology ecosystems are and have been,” Gorman said, adding that U.S. companies like Apple “rely on China for much of their business.”

This complicates the “decoupling of US tech ecosystems from Chinese tech ecosystems,” she said.

“These ties are obviously very tight. It’s not going to be a one-time decoupling,” Gorman said.

“It’s not going to be particularly smooth, and we’re seeing that with US and other multinationals that still have very strong ties to China.”

Lululemon shares surge as vacation quarter gross sales soar

A Lululemon sign is seen at a mall in San Diego, California, November 23, 2022.

Mike Blake | Reuters

Lululemon on Tuesday reported strong sales in the holiday quarter, suggesting that wealthier shoppers are still buying yoga pants and tops despite rising prices for essential commodities.

The company also issued an upbeat forecast for the new fiscal year.

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Shares of Lululemon are up about 11% in after-hours trading following the report. As of Tuesday’s close, the stock was roughly flat for the year, putting the company’s market value at $40.87 billion.

Here’s what the company reported for the three-month period ended Jan. 29, compared to Wall Street expectations based on a poll of analysts by Refinitiv:

  • Earnings per share: Adjusted $4.40 vs. $4.26 expected
  • Revenue: $2.77 billion versus $2.7 billion expected

Lululemon’s fourth-quarter net income fell to $119.8 million, or 94 cents a share, from $434.5 billion, or $3.36 a share, a year ago. Excluding impairments and other charges related to the Mirror acquisition and other items, earnings per share were $4.40.

Revenue increased to $2.77 billion from $2.13 billion last year.

The company expects fiscal 2023 revenue of between $9.3 billion and $9.41 billion, beating Wall Street’s expectations of $9.14 billion, according to Refinitiv estimates. The company expects full-year earnings per share of between $11.50 and $11.72, compared to Refinitiv estimates of $11.26 per share.

“Looking ahead, we remain optimistic about our ability to create sustainable growth and long-term value for all of our stakeholders,” Chief Financial Officer Meghan Frank said in a statement.

The Vancouver-based sportswear retailer said total comparable sales rose 27% in the fourth quarter. Also known as same-store sales, the metric includes sales from stores that have been open for at least 12 consecutive months.

“We believe it’s one of the few companies in the industry that has a very long growth path, and it’s a very visible one, too,” said Rick Patel, managing director at Raymond James.

Patel said his firm, which maintains a Strong Buy rating on the stock, sees upside in Lululemon’s international business and men’s business, and that the company’s worst camp struggles are in the past.

In December, Lululemon announced that inventories at the end of the third quarter were up 85% year over year. The company said on Tuesday that inventories were up 50% by the end of 2022.

With touring nurses making $150 an hour, hospital programs are progressive

Cassie Jupin grew up wanting to be a nurse. She sought a position at St. Peter’s Health Partners Hospital in Albany, New York and landed a position in the same maternity ward where she was born.

“Knowing that I can come back to work any day and work with a group of women and people who just make it so easy,” was gratifying, Jupin said. “Everyone is here to help you.”

When she graduated from nursing school last July, she and her classmates joked about taking traveling nurse jobs that paid much more than entry-level staff jobs.

“They were about $140 to $150 depending on the area you were looking in,” she explained. Payment was not per day. It was per hour.

According to a survey by the American College of Healthcare Executives last year, retaining nurses like Jupin was the most pressing staffing issue for 90% of CEOs at community hospitals like St. Peter’s.

staff shortage

The pandemic has exacerbated nursing staff shortages, causing contract nurse rates to skyrocket during successive waves of Covid infections. During the Omicron surge in winter 2022, national rates increased to an average of $150 per hour, according to consulting firm Syntellis. That was three times the national average for full-time nurses.

As hospitals increasingly rely on contract nurses, travel nurse spending has increased by more than 250% since the pandemic began.

“Hourly wages paid to registered nurses continue to experience significant volatility, which accounts for a significant portion of total labor costs,” said Flint Brenton, CEO of Syntellis Performance Solutions.

A nurse instructs a colleague in the care of a Covid patient in the Covid intensive care unit of the University Hospital Leipzig.

Sean Gallup | News from Getty Images | Getty Images

At the same time, the use of highly paid staff by travel nursing agencies also led to a vicious circle in staffing.

“The agency’s staff received high pay rates and had complete control over their hours,” explained Carol Boston Fleischhauer, executive director and chief nurse officer on the advisory board, and as a result, “more in-house nurses left permanent employment for outside opportunities, increasing revenue.”

In 2020, Aspen Tucker left his nursing job to become a traveling nurse, a move that came with a substantial pay rise.The 29-year-old traveling nurse jumped at the chance to make $187,000 and work just 9 months a year: ‘A once-in-a-lifetime opportunity’

Travel nurses in house

St Peter’s is part of the Trinity Health System, which has not been immune to the need for contract care. But Trinity has been able to better manage staff turnover by using its own traveling nurse program — an idea that originated with its own nurses over a decade ago.

“We realized that if you will, we could develop our own internal agency that could bring people to Trinity Health’s attention for all of our hospitals,” said Jennifer Misajet, chief nursing officer at St. Peter’s Hospital.

This internal program, called First Choice, tripled in size during the pandemic as older nurses sought to reduce their full-time employment and younger nurses sought higher pay and greater flexibility in their working conditions.

“It’s not like it used to be when nurses became in-patients for 30 years. Many recent graduates expect to work in an inpatient setting for just a few years, and then they want to pursue their master’s degree or become a registered nurse practitioner,” said Trinity CEO Mike Slubowski.

With nearly 90 hospitals in 26 states, First Choice has helped Trinity better control contract nursing costs while maintaining relationships with nurses who can help them maintain a consistent quality of care.

“If they wanted to work somewhere else, like Fresno, California, or Boise, Idaho to cover there, you know, we have the same clinical information system everywhere… and so it’s familiar with delivering care in that environment,” said Slubowski.

With more than 30,000 registered nurses in its system, nearly 1 in 10 of Trinity’s nurses currently work with First Choice. That now includes about a dozen senior executives like Misajet in St. Peter.

“We really tried to meet our nurses where they are and they are in different places,” Misajet said. In her case, she chose to work part-time rather than retire to spend more time with her family.

pay more

Analysts say more hospitals are following Trinity’s lead and launching their own in-house staffing programs to reduce labor costs on agency contracts. At the same time, they face higher costs to retain their full-time caregivers. According to its most recent financial statements, Trinity increased employee pay by 5.5% in 2022.

For new nurses like Jupin, who may be tempted by high-paying traveling nurse jobs, the message from hospital management is clear.

“They don’t want you to go away – especially our manager,” the maternity nurse said. “The first thing she always said to us is, ‘Please come to us if you need anything because we want you to stay here for the long haul.'”

According to a recent survey by the American Nurses Association, better pay and staffing conditions remain the top concerns for most nurses, but flexibility is also key for more than half of them. Increasingly, it is also proving to be key for hospital systems such as Trinity.