Manitoba’s health minister has told the Prairie Mountain Health region to cut back on private nursing agency costs by next year.
The province announced on Wednesday it issued a directive for the region to reduce for-profit nursing agency costs by 15 per cent by March 2026.
“It’s time to put a hard stop on private for-profit nursing agency over-spending and re-invest in the public system,” Minister Uzoma Asagwara said in a news release.
‘A very costly problem’
Private nursing agencies hire registered nurses who are then contracted out to health regions to fill vacancies within the system.
The province said Manitoba has previously held hundreds of contracts with more than 70 private agencies with little control over the impact to the public system or the rates charged.
In a statement the health region’s CEO Teena Slate said she supports and commends the province’s step.
“We are working with the Province on steps to ensure there will be no gaps in care as we transition from a heavy reliance on agencies to employing enough staff to meet our needs,” Slate said in the statement.
“We’re working diligently to reduce the use of agency staff within our operations. We will strive to meet the direction provided and are confident that we can assist ourselves in reducing agency use.”
Tory health critic Kathleen Cook spoke out against the announcement, sharing a document the Progressive Conservatives received through a freedom of information request.
The document shows the Prairie Mountain Health region’s spending on private nurse salaries in hospitals increased from more than $8.2 million in 2022, to more than $11.5 million in 2024.
“This NDP government has allowed this overspending to reach historic levels, and a 15 per cent reduction won’t even cover the full scope of the damage done under their watch,” Cook said in a written statement.
“Rather than offering vague directives with no support, the NDP need to explain how they plan to reduce the reliance on agency nurses in the first place and make meaningful investments in recruiting and retaining public system nurses.”
Darlene Jackson, president of the Manitoba Nurses Union, told CTV News Prairie Mountain Health heavily relies on private nurses.
“They have a real issue with retaining and recruiting nurses into the public system, and so they depend very heavily on agency nurses,” she said.
“There are some facilities that probably would not be open if they didn’t have private for-profit agency nurses providing staffing, so it is a big problem. It’s a very costly problem.”
Jackson said she is supportive of the province’s actions to cut back on private nursing costs – as long as work is done to fill the gaps left behind.
“You have to ensure that if you’re not using those agency nurses, that you are providing staffing appropriately to provide the care that patients need, so it’s really a balancing act.”
Jackson said many of the nurses hired by private agencies left the public system, and work will need to be done to bring them back.
Still, she believes it is attainable for Prairie Mountain Health to meet the provincial deadline. Jackson said a new initiative by the union can help make that happen.
Hundreds signed on for provincial travel nurse team
The MNU has been working with the province to create a provincial travel nurse team – offering an alternative to private agencies.
“There’s increased compensation. There’s benefits to it, very much like the private for-profit agencies,” she said, noting some of those benefits include mileage and travel costs. “There definitely is an increased income, but it’s within our system.”
She said 286 nurses have already joined the team and another 20 nurses are ready to sign on.
“What we would be doing is encouraging employers to utilize that travel team rather than going to a private for-profit agency,” she said. “I think it’s attainable, but I think it’s going to take some, you know, commitment from the employer to ensure that that team is resourced appropriately.”
Jackson said she believes the cuts to private nursing in Prairie Mountain Health will bring many nurses back to the public system.
The province has also launched a request for proposals, which it said aims to reduce the number of contracted agencies at prices that allow the majority of funding to go to the front lines. The province is now reviewing those proposals.
Slate said the region is hopeful these proposals will help redirect nurses into the public system. She said this will also streamline administrative processes, making the system more efficient and reduce cuts.
