In the ever-evolving world of healthcare, the reclassification of healthcare workers as 1099 agency workers has emerged as a topic of intense discussion. While this staffing option offers flexibility and cost-efficiency to healthcare facilities, it’s crucial to delve into the potential risks this classification introduces to the ecosystem.
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Who is in charge?
One of the primary concerns revolves around the level of control exerted over these contractors. Unlike traditional employees, 1099 agency workers operate with more autonomy in their schedules, methodologies, tools, and decision-making. While this autonomy can foster innovation, it also poses the risk of inconsistency in patient care delivery. The lack of management might inadvertently impact the quality and standardization of healthcare services provided.
Pro tip: When 1099 agency workers miss or skip a shift, there are no consequences. Since they are self-employed, there is no one to hold them accountable for these actions and they often go unaddressed.
Does 1099 benefit you?
The absence of benefits integral to traditional employment arrangements is a significant point of contention. Healthcare facilities hiring contractors under this classification often bypass providing health insurance, paid time off, and retirement plans. This absence not only affects the financial and mental well-being of the contractors but also impacts their dedication and retention within the organization.
When using agency staff, look into staffing agencies that provide facilities with W2 staff, like Cascade Health Services. Agencies who use the W2 model for staffing generally offer the option to enroll in benefits, they also take care of taxes for employees, resolve HR issues, and carry liability and work comp insurance that covers all of their healthcare staff. Using a company like Cascade can allow you to get the same PRN coverage you need to handle your unfilled shifts; Without carrying the liability brought to the table by 1099 agency workers.
How much does your help cost you?
Beyond the immediate concerns lies the looming legal and financial risks for healthcare facilities. The misclassification of these workers can prompt legal disputes wherein contractors might demand retroactive employee benefits. This retrospective demand could result in substantial financial liabilities, potentially affecting the financial stability and reputation of the healthcare facility.
How do I avoid the risks of 1099 Agency workers? Because I need staff.
The classification of healthcare workers as 1099 agency workers indeed introduces complexities and challenges, but it also presents an opportunity for healthcare facilities to rethink their workforce strategies. By addressing these risks proactively and finding a better solution to bring balance between flexibility and stability, healthcare facilities can maintain quality patient care while safeguarding themselves from potential legal and financial pitfalls.
Making a simple switch to an agency that can provide the same staffing coverage with W2 healthcare staff, allows facilities to continue to deliver safe and successful healthcare outcomes to patients and residents, AND provides them with the peace of mind that they are covered by a reputable and risk-free staffing vendor.