'Indentured servitude': Nurses hit with hefty debt when trying to leave hospitals

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'Indentured servitude': Nurses hit with hefty debt when trying to leave hospitals
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“We’re being preyed on by someone in power. We’re desperate for a job, we just got out of school, we don’t know any better,” said Jacqui Rum, 38, who lives in Westlake Village, California.

WASHINGTON — When Jacqui Rum quit her nursing job at Los Robles Regional Medical Center last fall over the heavy workload and low staffing levels, it came with a high price — a $2,000 bill from her former employer for training costs.

The practice of requiring repayment for training programs aimed at recent nursing school graduates has become increasingly common in recent years, with some hospitals requiring nurses to pay back as much as $15,000 if they quit or are fired before their contract is up, according to more than a dozen nursing contracts reviewed by NBC News and interviews with nurses, educators, hospital administrators and labor organizers.

The practice has caught the attention of the Consumer Financial Protection Bureau, which in Septemberforms of debt created by employers for their employees through training programs. The agency is in the process of reviewing the training repayment programs as a type of debt product being offered to workers, similar to a student loan, and assessing whether the agency should take additional oversight actions, said a CFPB official.

Cassie Pennings said she thought she had no choice but to sign a two-year contract and agree to repay her employers as much as $7,500 for training if she wanted a job out of nursing school at the major health center in the Denver area, UCHealth.She said she received some training from the hospital in her first months on the job that included online modules, several weeks of in-person lectures and three months of shadowing a more senior nurse.

DelMonte said it has been a long-standing practice for hospitals to seek training repayment because of the investment hospitals make in training new nurses. Programs like the one used at UCHealth can cost a hospital $60,000 to $100,000 per nurse for the first year.

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