New report calls for end to for-profit staffing agencies; MPP Rae pushes back

Andrew Longhurst, a research associate and author of the recent study Hollowed Out: Ontario Public Hospitals and the Rise of Private Staffing Agencies, spoke at a press conference last week about what he said is a significant rise in costs linked to private staffing agencies at local hospitals.

A new report from the Canadian Centre for Policy Alternatives, with the support of the Canadian Union of Public Employees (CUPE), recommends that Ontario significantly boost hospital funding, phase out for-profit staffing agencies, and invest in preventative health care.

The report, Hollowed Out: Ontario Public Hospitals and the Rise of Private Staffing Agencies, links an increase in agency use to what it describes as chronic underfunding of public hospitals over the last decade.

Between 2013-2014 and 2022-2023, Ontario hospitals are said to have spent $9.2 billion on what the report refers to as “for-profit staffing agencies” – costs that, according to the authors, can be up to three times higher than employing in-house staff.

However, Perth-Wellington MPP Matthew Rae pushed back on the report’s conclusions. He said the Ontario Hospital Association has officially called on the Canadian Centre for Policy Alternatives to withdraw the report, citing what they describe as inaccuracies in the data.

“When referencing the $9.2 billion figure spent on agency staffing, CUPE fails to disclose that this figure encompasses a variety of purchased services as well as agency staffing costs,” Rae said.

He also noted that the increase in agency workers in hospitals has been relatively modest – rising from 1.5 per cent to 2.2 per cent – while long-term care usage has actually decreased by over two per cent.

Andrew Longhurst, a research associate with the centre and the report’s author, said agency workers include nurses, allied health professionals, administrative staff, and personal support workers and the data accurately describes what is seen throughout hospitals and long-term care homes across the region.

“We are seeing that hospitals are struggling to recruit and retain permanent staff, while public dollars are subsidizing private interests with a business model based on hollowing out the public sector workforce,” he said.

The report highlights that the southwest region of the province, including Stratford, has been particularly affected, stating that more than 79 per cent of hospitals in the region are operating with deficits.

According to the report, hospitals in the region spent $52 million on agency staff in 2022-2023 – a 114 per cent increase over the past decade. Longhurst attributed this rise to rural and remote hospitals facing ongoing challenges recruiting permanent staff. “There’s a greater tendency in rural communities to turn to private, for-profit staffing to keep services open,” he said.

Rae disagrees, stating that health-care spending budgets are transparent and the Ontario Government is working to help boost grants to help promote more students into needed health-care fields to fill the gaps.  

“Our government has introduced legislation to create a transparency framework for staffing in hospitals, long-term care, and community health sectors,” Rae said, adding that programs such as the Ontario Learn and Stay Grant are helping nursing students train and remain in local hospitals.

Despite disagreement over the data, the report outlines several recommendations to reduce dependence on agency staffing and reinforce public healthcare. It calls for phasing out for-profit staffing agencies within three years, following Quebec’s lead, while increasing hospital funding by $2 billion annually to stabilize operations and maintain services.

To support the transition, the report proposes a comprehensive health workforce strategy with regional targets aligned with hospital infrastructure planning. It also urges investment in community health centres – evidence-based, not-for-profit models that help manage chronic disease and reduce pressure on emergency departments.

Rae responded by saying the provincial government is working hard to help support local hospitals. “I will continue to work with local hospital CEOs and health-care professionals to ensure they have the resources they require to keep our communities safe and healthy.”