Spending on private agency nurses jumps (2024)

Manitoba paid private agency nurses to work the equivalent of 76.5 years to fill vacant nursing positions — and that was just during the first nine months of the 2023-24 fiscal year.

Shared Health recently released figures that show regional health authorities across the province hired agency nurses to work more than 670,000 hours in total, or 76.5 years, from April 1, 2023, to Dec. 31, 2023.

The number is part of data that shows private agency nurse spending across the province jumped from a total of $35.5 million at the end of the second quarter to a total of $56 million at the end of the third quarter on Dec. 31, 2023.

Among the five RHAs, the Prairie Mountain RHA spent $21 million at the end of the third quarter, the most in the province, for 261,157 hours of private agency nursing. That works out to be about $80.34 per hour.

Next was the Northern RHA, which spent $12.2 million for 111,504 hours of nursing, or $109.29 per hour; followed by the Interlake-Eastern RHA at $11.2 million for 142,288 hours, or $78.78; Southern RHA at $7.7 million for 97,175 hours or $78.69 per hour; and the Winnipeg Regional Health Authority at $4 million for 58,250 hours or $69.64 per hour.

The mid-range wage for a general duty registered nurse is around $45 per hour, according to the Manitoba Nurses Union.

Health Minister Uzoma Asagwara says they are working hard to reduce spending on private agency nurses by regional health authorities by taking steps to encourage nurses to return to the public health care system.

Asagwara said they have spent their first six months in office meeting with nurses, putting more money into various key areas to increase their numbers and creating a public provincial float pool.

“Certainly, we want the spending for agency nurses to trend in the opposite direction,” they said on Friday.

“Our focus is on restoring trust with nurses, on repairing the relationship they have with the public system, and creating a culture in our health care system that they are excited to be a part of. We’ve taken several steps to support that happening and there is more work that we need to do.”

Asagwara said they know it will take time for the province to win back nurses, who in the past few years have left the public health care system in droves to become agency nurses, knowing they were leaving behind pensions, benefits and training opportunities.

“We have to give them a competitive offer,” they said. “We need to afford nurses the opportunity to have good work-life balance control over their schedules and workplace culture that they feel serves them well and allows them to provide quality care to their patients.”

Asagwara is pleased to see hundreds of nurses have already applied to be part of the provincial float pool, something that will reduce the number of agency nurse hours.

Molly McCracken, interim spokesperson for the Manitoba Health Coalition, said the province has to find a way to spend less on agency nurses.

“The skyrocketing expenses of for-profit agency nurses demonstrates how much the health care system is now relying on this once stop-gap measure,” McCracken said.

“The Manitoba government’s commitment to staff up health agencies with regular nurses needs to be an absolute priority. It will save public funding and improve consistency of care.”

Darlene Jackson, president of the Manitoba Nurses Union, said RHAs relying on agency nurses isn’t just because there is a “critical nursing shortage” in the province.

“It’s also because nurses are moving to agencies because they are working for a much higher salary,” Jackson said. “It’s also because of the workload nurses have and the lack of work-life balance.

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“This government has to figure out two things: how to compensate nurses to draw them back from the agencies and then figure out how to retain them.”

MLA Kathleen Cook, the Progressive Conservatives’ deputy leader, said in a statement she was not surprised to see the costs for agency nurses rise under the NDP government.

“The NDP were extremely vocal while in opposition about agency nurse spending, but have done nothing so far in government to reduce it,” Cook said.

“They have not brought forward a tangible plan to attract, train, or retain nurses in our public health care system… instead of pointing fingers, the NDP need to offer tangible incentives to bring in and keep more nurses in the public system to address the need for high agency nurse spending in the first place.”

A WRHA spokesperson said they could not comment at this time on why the amount spent on agency nurses jumped to more than $4 million during the first three quarters of the year, when at the end of the second quarter it was at $2.2 million.

A spokesperson said the numbers wouldn’t be finalized until after the full year so they could change.

At the end of the third quarter, Prairie Mountain Health, which includes Brandon, Dauphin and Swan River, had spent the most on agency nurses of any regional health authority in the province — a total of $21 million up from $13.8 million three months earlier.

Prairie Mountain Health CEO Treena Slate said the change in agency costs is based on invoices paid out through the year as services are provided.

“Due to ongoing recruitment and retention challenges, it has been necessary for PMH to use nursing and health care aide agency services to continue to provide safe, quality care for our clients, patients and residents,” Slate said.

“Due to the size of our region, agency costs in PMH have a significant component related to reimbursem*nt of travel costs for agency staff.”

Meanwhile, Asagwara, who worked as a psychiatric nurse before being elected, said they know what it is like to be at work and suddenly be told you are working a double shift.

“I can recall having plans with a sibling or with family and at the last minute having to change those plans or missing out — I know the impacts of your life being disrupted in that way,” they said.

“Supporting them in having a better work-life balance is supporting them in being able to provide better care.”

kevin.rollason@freepress.mb.ca

Spending on private agency nurses jumps (7)

Kevin Rollason
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Kevin Rollason is one of the more versatile reporters at the Winnipeg Free Press.Whether it is covering city hall, the law courts, or general reporting, Rollason can be counted on to not only answer the 5 Ws — Who, What, When, Where and Why — but to do it in an interesting and accessible way for readers.

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Spending on private agency nurses jumps (2024)

FAQs

Spending on private agency nurses jumps? ›

The number is part of data that shows private agency nurse

agency nurse
A Nursing Agency (also known as Home Health Agency or Home Care Agency) is a service provider agency which provides nurses and usually health care assistants (such as Certified Nursing Assistants) to people who need the services of home healthcare professionals.
https://en.wikipedia.org › wiki › Nursing_agency
spending across the province jumped from a total of $35.5 million at the end of the second quarter to a total of $56 million at the end of the third quarter on Dec. 31, 2023.

Why do agencies pay nurses more? ›

Their monthly pay can vary greatly depending on how many shifts they choose to work and whether those shifts have any bonuses or extra-pay incentives. Often, agency nurses are paid at a higher rate than staff nurses because they fill high-priority shifts that are necessary to maintain stable staffing ratios.

Which nursing agency pays the most? ›

Top companies for Agency Nurses in United States
  • OSU MEDICAL CENTER. 3.5 $85.00per hour. 190 reviews12 salaries reported.
  • Connected Health Care, LLC. 4.8 $62.33per hour. ...
  • Med Center Health. 3.3 $61.55per hour. ...
  • Elite Nurses. 3.6 $34.99per hour. ...
  • Absolute Companies. 2.9 $31.84per hour. ...
  • Show more companies.

Why are nurses getting underpaid? ›

Furthermore, nurses are often not considered a "high-demand" profession, and therefore may not be compensated at the same level as other essential workers such as doctors or engineers. Additionally, nurses are typically not unionized, which can also lead to lower wages and fewer benefits.

Why do hospitals use agency nurses? ›

#1: Meeting Staffing Requirements

Many states have redefined their laws on nurse-to-patient ratios since the pandemic. For some facilities, these metrics are simply difficult to meet. Hiring travel nurses help hospitals, LTC providers, and other facilities fill in those gaps with experienced, skilled RNs.

Why do staffing agencies make so much money? ›

As a business that services almost all industries, staffing agencies make money from the fees paid for recruiting services. Their earnings come from providing workers to companies who are looking to employ them.

Why do night nurses get paid more? ›

Shift Differential Pay

Because of the irregular hours, facilities offer higher pay for night shift nurses. This shift differential (sometimes called “shift diff”) may be a flat additional rate per hour, or expressed as a percentage of your flat hourly pay.

Who is the highest paid RN? ›

The salary of nurse anesthetists is the highest of all nursing professions. According to the American Association of Nurse Anesthesiology (AANA), certified registered nurse anesthetists (CRNAs) are anesthesia professionals who safely administer over 50 million anesthetics to patients in the United States annually.

Which state pays RN nurses the most? ›

Best Paying States for Nurses

The state with the highest annual wage is California, which has an average wage of $133,340 per year. Following behind California are Hawaii, with an average salary wage of $113,220, and Oregon at $106,610. The states with the lowest average wage are Alabama, Arkansas and South Dakota.

Is agency nursing worth it? ›

If you have other commitments outside of work or want to pick and choose when you work, being able to do so through an agency can be ideal. Higher pay – In many cases, nurses who staff through an agency make more money than they would in traditional roles.

Why do RNs make so much? ›

Nurses are in high demand

This also means that nurses have a great number of choices in terms of where they want to live. The medical field in general has many roles that are in very high demand, and as a result, the pay for these roles is often good.

What's really behind the nursing shortage? ›

The nursing profession continues to face shortages due to a lack of potential educators, high turnover, and inequitable workforce distribution.

What would happen without nurses? ›

Health care systems would face increased costs due to inefficiencies; they would pay higher salaries to attract doctors or other health care professionals to fill the voids. These costs would trickle down to the patients, making health care more expensive and less accessible.

How to decrease agency nurse usage? ›

Below are three strategies to employ to balance your staff and decrease agency usage.
  1. Adopt an enterprise mentality. ...
  2. Schedule to volume patterns. ...
  3. Monitor FTE leakage.
Dec 4, 2019

Why do agency nurses get paid more? ›

Travel nurses take on short-term assignments, which typically start at 13-weeks, ensuring that patients receive quality care even if a facility is having trouble filling open nursing positions. In exchange for their experience and flexibility, travel nurses typically get paid more than staff nurses.

Why do traveling nurses make more? ›

The pay is commensurate with the challenges they face and the skills they bring to the job. Hospitals use travel nurses to fill short-term staff and managerial positions. Travel nurses live away from home for 13-26 weeks per assignment. Additional compensation is paid to help offset related costs and difficulties.

Why do some travel nurse agencies pay more than others? ›

Different bill rates at the same hospital is one potential reason for differences in pay. The bill rate is the hourly rate that the agency bills its client hospital for the traveler's time. The bill rate is single biggest factor in determining how much an agency can pay for a particular assignment.

In what setting do nurses make the most money? ›

1. Certified Registered Nurse Anesthetist (CRNA) – $235,000
  • Traditional hospital operating rooms and obstetrical delivery rooms.
  • Critical access hospitals.
  • Ambulatory surgical centers.
  • Ketamine clinics.
  • Offices of plastic surgeons, dentists, podiatrists, ophthalmologists, and pain management specialists.
4 days ago

Why are nurses demanding higher pay? ›

Workplace safety, staffing levels and other work environment issues are also key drivers emboldening nurses to demand more from their employers.

References

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