Iowa's Nursing Shortage Clause Nears Expiration

An Iowa measure that allowed retired state healthcare professionals to return to work earlier than usual — to ultimately alleviate a provider shortage — is set to expire this summer, according to a Sioux City Journal report.

The Iowa state legislature passed the measure 10 years ago in light of a nurse shortage in rural areas. Nearly all state employees have the option to return to work after at least four months of retirement, but the exemption allowed public healthcare providers to return after just one month.

The Iowa Hospital Association is arguing that the exemption should be extended again so state hospitals can better compete with the private sector. The measure has been extended three times since 2004, according to the report.

"Hospitals are unique in that half of Iowa hospitals are private, half are public," an IHA spokesperson said in the report. "Without this provision, a retiree could simply drive down the road a ways and continue part-time work in the private sector."

On the other side is the Iowa Public Employees Retirement System, the largest pension system in the state. The IPERS has been urging an end to the exemption, arguing that return-to-work employees cost the state more than young, newly hired employees, according to the report.

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