It does sound illegal, agreed, but I found that to be the case (similar case) at three agencies I worked for and that is the exact reason I left home health care and will never do it again. I'd work at Walmart before home health.
These agencies want to pay you 2 hours for an OASIS. Well, maybe 1 out of 5 can be completed in 2 hours, but most will take longer. Some considerably longer. The last one I did I spent about 5 hours! Pt just home from hospital, in an apartment that boarded on "hoarding", medications scattered all over..."just look in that little box in that bookcase" after you moved the sofa, the cat litter box...to this day I don't know if I located all the meds. She was in a recliner but up to the commode multiple times during the time I was there, friends calling on the phone, the cat had to be fed...wounds not reported at time of referral (back to car for wound care supplies/waiting on call from physician, etc)...on and on it went. Then the hour + drive home in traffic, almost 3 hours of charting (which included trying to get in touch with providers) and they wanted to pay me for just 2 hours.
Personally, it wasn't just the pay that did me in but also the fact that I rarely completed a visit feeling like I did a good job. Always in a hurry, having to get to the next pt, having to get to office for clinical conference, never-ending phone calls from patients, office, providers, calls all weekend and into the later hours of the evening. Having to use my phone, my computer, printer (toner/paper)...home health was exhausting and expensive. For me.
One more comment: IMHO, because of the reasons I listed and others have listed in previous posts, many of these companies can't keep nurses. Therefore, they hire whoever walks through the door - some of whom I wouldn't want to take care of my enemies (I did meet some great nurses but they are no longer doing home health - tells you something). Until these less than stellar and lazy, corner cutting nurses are eliminated from agencies, nothing will change other than agency owners raking in more and more $$'s.