Ontario hospitals paid for-profit staffing companies $9.2 billion over a decade, a discovering that comes as one hospital goals to cease its use of temp companies by September.
The Canadian Centre for Policy Alternatives commissioned Monday’s report, titled Hollowed Out: Ontario Public Hospitals and the Rise of Personal Staffing Companies. It targeted on elevated spending on the companies for nurses, allied well being professionals and administrative help employees from 2013-14 to 2022-23.
Hospitals and long-term care properties flip to staffing companies once they cannot fill all of their shifts with workers. Short-term company health-care staff permit them to proceed offering companies throughout employees shortages, though they cost up to triple the recurrently hour price, hospitals have stated.
Real spending on companies almost doubled, from $21 per capita to $41 over the examine interval, in keeping with Andrew Longhurst, a political economist at Simon Fraser College, and the report’s creator. As compared, public hospital employed employees elevated from $604 per capita to $641 over the identical time within the province.
“What we’re seeing throughout the board with the usage of personal for revenue suppliers is the general public governments are paying an exorbitant quantity and getting comparatively little in return,” Longhurst stated.
Longhurst says provincial fiscal austerity destabilizes hospitals simply as inhabitants development and growing older put extra stress on hospital staffing, which exacerbates hallway medication and the lengthy wait instances sufferers face at emergency departments or for scheduled surgical procedures.
Utilizing personal companies turns into a “vicious cycle,” in keeping with the report, as hospitals grow to be dependent on these dearer companies whereas the staffing disaster within the public sector will increase.
Working to be ‘company free’
In the meantime, at Markham Stouffville Hospital, employees are working to scale back reliance on personal companies that present non permanent hires similar to nurses to fill shifts within the emergency division, oncology and different models.
“Our objective is that by the tip of September we’ll be company free,” stated Mark Fam, president and CEO of Oak Valley Well being, which incorporates the Markham hospital that serves a quick rising area northeast of Toronto. “We have been in a position to cut back our company nursing by two thirds.”
To get there, Oak Valley offered newly graduated and internationally educated nurses with further coaching and help from seasoned nurses, created a nursing useful resource group who work throughout completely different models, hosted an open home and elevated hiring.

The provincial authorities funds the coaching for brand new nursing graduates and internationally educated nurses, Fam stated.
Below the Ontario authorities’s Nursing Graduate Guarantee program, employers obtain 20 weeks of funding to help new graduate nurses and internationally educated nurses transition into full-time observe. This system has employed greater than 3,300 nurses since 2020, in keeping with the province.
Nurses working for temp companies, in the meantime, say they’ll earn greater than double the wages of employees nurses doing the identical jobs in the identical hospitals, with full management over their work schedules.
Vickie Idowu, interim supervisor for the useful resource group and staffing workplace, stated the hospital offers in depth orientation to its nurses, in order that they extra successfully combine into the workflow — a key distinction from temp staff.
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“They get to know what’s occurring on the unit, so once they’re able to go and begin working, they’re effectively ready,” she stated. “And what really will make them completely different from utilizing the company is that these are our employees.”
Idowu stated having their own staff helps present continuity of care in contrast with company of us who could solely see a affected person as soon as every week. “They’re acquainted faces and sufferers are extra snug with them.”
How Ontario compares to different provinces
Longhurst stated in contrast with huge cities, hospital budgets have been notably strained in smaller and northern areas of Ontario, the place hospitals have revenues beneath $100 million and reliance on for-profit companies is larger.
In 2022-23, personal company prices consumed a bigger share of staffing expenditures, particularly in Ontario’s North West (17 per cent) and North East (11 per cent), in keeping with the report. That is up from 2013-14, when personal company prices as a share of complete labour prices have been under six per cent in all Ontario well being areas.
Ontario had the bottom per capita hospital spending in Canada at $1,805, behind B.C. ($1,902) and Quebec ($2,028) in 2022, in keeping with the report.
“I believe long term if we proceed down this street, we’ll see our publicly funded well being care programs throughout the nation struggling to ship care in a value efficient method that truly meets the wants of sufferers,” Longhurst stated.
Elsewhere throughout Canada, Quebec handed a regulation to section out the use personal placement companies by 2026, which is being challenged in court. Equally, New Brunswick launched laws that will cancel a journey nurse contract, and the company is suing over alleged breaches of contract .British Columbia additionally plans to phase out use of the companies.
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