Bill rate drop? - Call their bluff

Since COVID cases have started to decline, we are seeing the number of available travel positions drop as well. In a way, this is the natural ebb and flow of the traveling medical industry. The pool of travelers spike as rates rise, then the number of jobs and rates drop as the market becomes saturated. However, there has been a trend amongst many hospitals lately to reduce the bill rate after the contract has already been signed.

Many facilities are dropping their bill rates and calling it "rate normalization". Some of these rates are falling much lower than pre-pandemic times. This tactic seems to be stemming from the hospitals themselves in attempt to keep travelers onboard at a lower rate. Oftentimes they're successful when working with a new or inexperienced traveler. The main way to fight these declining rates is to call their bluff.

High-risk, High-reward

Traveling is inherently more uncertain than having a permanent-staff job. Contractors are required to secure temporary housing away from home, pay duplicate expenses, and are never guaranteed that their job will last 13-weeks. This is one of the reasons why travelers are paid so well. Without any assurances and assuming a lot of financial exposure, travelers typically receive generous pay on top of the GSA tax-free stipends.

Lately, hospitals have been dropping bill rates at random times. It may be at the beginning, end, or even mid-contract. Knowing a traveler is already invested into working at their hospital, many facilities use this as leverage to lower a traveler's rate. Many of us may begrudgingly sign the rate modification, provided by our agency, because it's often easier than confronting them. However, we need to stand our ground to keep the original contracted bill rate.

How to deal with a lowered bill rate

Be upfront: Let your recruiter know that you are unwilling to sign-on or extend your contract unless you continue making your previously agreed-upon rate. Also let your facility manager know that the rate has dropped, and you will be leaving the facility if this happens. It is very important to stress this with conviction, and you must be willing to follow through.

Investigate: Have your agency send you proof that the bill rate has dropped. It can be an email or screenshot from the hospital HR department clearly stating the bill rate is changing and what the new proposed rate will be. You can also talk to the manager to see if they can offer any insight on why the bill rate changed.

Wait: After both your agency and facility manager are aware that you won't do the same work for a lower rate, you simply wait for their response (HR moves slowly). During this time, it's wise to begin shopping around for another contract with a different agency just in case your current facility won't budge (just don't sign a new contract yet). This new contract can also be used as leverage in negotiating your contract extension.

More than likely, the hospital may not be willing to lose you with all the resources they have invested in recruiting and training you over the last few months. When your manager is aware that they will be losing a hard-working, trained member of the staff, they may try to contact HR in attempt to keep the same bill rate and retain you.

Additionally, your agency should also be fighting for your rate to stay the same. A bill rate adjustment means they also lose money. Your company wants you to stay in that job as long as possible, so they wont need to expend more resources to find you another position. This is also a great opportunity to have the bill rate conversation with your recruiter. Be sure you're getting the most out of your contract.

Call their bluff: Most of the time, being persistent in keeping the same bill rate will result in success. If you, your recruiter, and department manager all express that you will not accept a lower rate, the facility may fold and pay what was already agreed. Sometimes, the hospital will not accept your ultimatum and won't keep you on at the same rate. This is one of the reasons why having an emergency fund is so important.

Win some; Lose some: There will be some cases when the hospital will not budge on the rate, but it will still be an attractive offer. If the assignment is in a desired location and is still paying decent for the area, then you may choose to stay as a last resort. Just because the hospital dropped your rate doesn't always mean you will need to leave.

Just be sure to evaluate the pros and cons of the situation and be certain that you're receiving fair compensation. Your agency may be willing to share the burden of the lower rate by reducing their margins as well. Ask them to do everything possible to keep your rate close to the original rate. If that isn't possible there may be other conditions besides money that can be renegotiated.

On-going battle: This bait-and-switch tactic has become so common that there is now a law-firm investigating notorious hospitals and agencies. If you have been effected by a rate reduction, you can complete this form to report the offending party.

This strategy is not a guaranteed method to ensure that your rate will remain the same, but it has worked for many of us travelers. By realizing our worth, we can push back against facilities trying to take advantage of travelers. It may be uncomfortable at first to give the facility an ultimatum, but it is well worth it when the negotiation tilts in your favor.

If you have recently received notice that your agency is dropping the bill rate on you, and have questions feel free to comment below or contact us. If you wish to receive our latest posts in your inbox, please subscribe using the box below and join us on Facebook.