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Lawmakers debate rising contract-nursing costs as state hospitals rely on traveling nurses
Summary
Committee members flagged rising spending on contract nursing—now roughly $32 million at some hospitals—arguing that pay parity, geography and recruitment strategies must be addressed as a long-term solution rather than repeatedly funding expensive contract labor.
Chairman Beler reported that several state hospitals (Larned/Lawrence, Parsons, Osawatomie) continue to rely heavily on contract nursing. The committee heard that Larned’s sexual predator treatment program costs about $51.5 million annually and that the committee reinserted roughly $32.2 million in contract-nursing expenditures after the special budget committee deleted that funding.
Members pressed for alternatives: questions focused on whether an enhanced state pay plan, scholarships with service commitments, or partnerships with local nursing programs (Fort Hays State University internship agreement cited) could replace contract staff. Committee members raised examples: if contract pay plus benefits equates to roughly $75/hour for comparable state positions, the state would need to consider enhanced pay packages to compete.
Lawmakers also discussed operational approaches used by hospitals—flex scheduling, shift differentials, bonuses and overtime—and trade-offs between paying for contract nurses and building state capacity. Several members urged stronger policy action, such as tying scholarship assistance to service commitments or restricting immediate contract-hire of state-funded scholarship beneficiaries. Others argued geography and staffing supply constraints limit the effectiveness of wage increases alone.
The committee added back contract-nursing funds for FY2026–27 after concluding there was not an immediate operational substitution to avoid shortfalls; members asked staff to quantify multi-year contract-nursing expenditures and report alternatives that could reduce reliance on high-cost contracted labor.
