Dive Brief:
- An Iowa law that allowed retired state healthcare professionals to return to work earlier than usual is set to expire this summer. The law was passed 10 years ago to address a nursing shortage in rural areas.
- The Iowa Hospital Association argues that the exemption should be extended again -- it's been extended three times since 2004 -- to help state hospitals better complete with private sector.
- On the other hand, the Iowa Public Employees Retirement System argues that return to work employees cost the state more than young new hires.
Dive Insight:
With half of hospitals in Iowa being public, and half private, Iowa is in the unique position when it comes to competing with private hospitals. If I were running a private hospital, I'd be wondering whether it's the job of the state to create competition for private hospitals, be it labor competition or any other kind. And as a public administrator, I might see the benefits of hiring younger nurses whose salaries are lower. Looked at overall, it may just be time to end this exemption.