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BREAKING NEWS: Veteran Canadian actor Donald Sutherland dead at 88
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reported and verified from knowledgeable sources.
B.C.'S HEALTH-CARE CRISIS: FIRST LOOK AT MASSIVE MARKUPS BY 'PARASITIC' STAFFING
INDUSTRY
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Penny Daflos
Penny Daflos
CTV News Vancouver Journalist
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Published Sept. 12, 2023 7:50 p.m. PDT
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Private staffing agencies stand to make huge profits from British Columbia’s
public health-care system, according to exclusive documents obtained by CTV News
after a seven-month freedom of information battle.
The contracts between the province’s health authorities and 16 for-profit
companies detail massive markups for the provision of health-care workers – from
nurses to X-ray technologists to occupational therapists – who are now propping
up the faltering public system. Sources tell CTV News anywhere from a quarter to
nearly all the staff in a hospital operating room or care home ward, for
example, are there on a short-term contract.
Many of them have left the public system and union pensions to make much higher
hourly rates while retaining the ability to choose when and where to work. The
agency hires them as temp workers, taking a big slice of the pie for doing so.
For example, a unionized, health authority worker with a designation as a
registered nurse in their first 10 years on the job makes roughly $45 as their
base hourly wage(opens in a new tab). A recent posting from a prominent staffing
agency that runs travelnurse.ca (opens in a new tab)posted a week-long request
for a surgical nurse in the Lower Mainland offering $52.50 per hour, with “bonus
incentives” and unspecified benefits.
All but one of the contracts allows such companies to charge health authorities
$75.62 for that same nurse for each hour they work, as well as any travel
expenses for those working more than 50 kilometres from where they live. The
markup is consistent across professions, and all offer a one per cent credit for
each $500,000 spent.
The contracts all appeared to have been re-negotiated last year and are nearly
identical except for two. ProMed HR Solutions’ contract has redacted the
sections outlining its rates, and Ontario-based Calian Ltd’s contract was
radically changed last year: until then, they had been charging $115 per hour
for registered nurses provided to Interior Health alone.
A GROWING PROBLEM FOR TIGHT BUDGETS
Before the pandemic, so-called “travelling nurses” had been predominantly used
in rural and remote communities where they would fill-in at smaller health-care
facilities to allow for vacations, medical absences and parental leave.
But the staffing crisis that’s dramatically escalated since the COVID-19
pandemic has dramatically increased the reliance(opens in a new tab) on
short-term contractors, expanding to allied health-care workers like pharmacy
technicians and technologists.
“I would call it a parasitic industry because they are really benefitting from
the severe shortages we're seeing in our public health-care system,” said Andrew
Longhurst, a health policy researcher at Simon Fraser University. “When you do
the math you see about a 30 to 35 per cent markup and that's a pretty
significant profit margin – you don't see that in a lot of industries,
especially in an industry without a lot of overhead.”
The health authorities require the agencies to cover their workers with
insurance, but also demand they sign their standard confidentiality agreement,
that they cannot assign the agreement to another company, and that “there is no
minimum service supply guarantee.”
TRULY A ‘LAST RESORT’?
The health minister and health authority staff have justified the use of agency
staff at various times by suggesting they were the workforce that powered
vaccinations, testing and contact tracing during the pandemic, that they were a
“last resort” that is only called upon to fill vacant shifts when patient safety
or keeping a facility open required more staff than were available from the
full-time ranks.
But British Columbia has seen a seven-fold increase (opens in a new tab)in
payouts to those agencies as reliance on them skyrocketed and has continued
after public COVID-19 testing collapsed and was abandoned in December of 2021
and many vaccinations are now carried out in pharmacies.
“This is privatization of healthcare starting with nursing services and it's not
good stewardship of taxpayer dollars,” said BC Nurses’ Union president, Adriane
Gear, who pointed to the better working conditions offered by agencies as a
major incentive for nurses.
“We can see why nurses make this choice, but it's further destabilizing the
system and steps need to be taken to keep that from happening,” she said,
echoing the concerns of public health-care advocates. “The cost is not
sustainable and I think if you could take a fraction of that money and invest it
in the health authority nurses in better recruitment and retention strategies,
that's where taxpayers' dollars should go.”
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