On March 5, 2025, the Oklahoma State Legislature introduced Senate Bill 904, aimed at addressing the critical issue of staff retention in the healthcare sector, particularly among Registered Nurses, Licensed Practical Nurses, and Certified Nurse Aides. The bill proposes a financial incentive program that allocates $3.00 per Medicaid patient day to participating facilities that meet specific retention criteria.

Key provisions of Senate Bill 904 include a requirement for at least 60% of Registered Nurses and Licensed Practical Nurses, and 50% of Certified Nurse Aides, to remain employed for a minimum of 12 months. Compliance with these retention rates will be measured quarterly. Additionally, facilities must submit an annual retention plan to the Oklahoma Health Care Authority by June 30 each year. The bill stipulates that incentive payments will be available during the first year to support retention efforts, with continued eligibility contingent on meeting program metrics in subsequent years.

The introduction of this bill has sparked notable discussions among lawmakers and healthcare advocates. Proponents argue that the financial incentives are crucial for improving workforce stability in a sector that has faced significant challenges, particularly in the wake of the COVID-19 pandemic. Critics, however, have raised concerns about the feasibility of the retention targets and the potential administrative burden on healthcare facilities.

The implications of Senate Bill 904 extend beyond immediate workforce concerns. Economically, the bill aims to enhance the quality of care provided to Medicaid patients by ensuring a more stable and experienced nursing staff. Socially, it seeks to improve job satisfaction and retention rates among healthcare workers, which could lead to better patient outcomes.

As the bill progresses through the legislative process, its potential impact on Oklahoma's healthcare system remains a focal point of debate. Stakeholders are closely monitoring developments, as the outcomes of this legislation could set a precedent for similar initiatives in other states facing workforce challenges in healthcare.