Canada’s Healthcare Crisis: Nursing Shortage Sparks Fears of Privatization Surge

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In a trend that is ruffling the usually composed medical ecosystem, a staggering number of 41,955 nursing vacancies were reported across Canada in the first quarter of 2023. This human resource vacuum is perturbing hospital staffing, leading to the shutdown of rural emergency rooms, and feeding the growth of companies offering temporary nursing services.

This shift in the care landscape stirs apprehension about the subtle privatization of an essential health sector, emphasizing the need for closer observation and more informed scrutiny.


The actual picture of what is happening on a national scale remains oblique, as pointed out by Joan Almost, a highly respected professor in the faculty of nursing at Queens University. She voices concerns everyone shares – the escalating costs these agencies charge, the shifting dynamics within hospitals, and the growing list of players stepping onto this playing field.

In collaboration with the Canadian Federation of Nurses Unions, Almost is engrossed in an intensive study to illuminate the staggering use of agency nurses and the mechanisms steering these companies. Despite offering a quick fix to staffing issues, agencies levy an exorbitant hourly fee that is two to three times higher than what a staff registered nurse (RN) earns. Added to this are the costs of travel, rental, and “finder” fees, further inflating the fiscal burden on the healthcare system.

Troublingly, this heavy toll is financed by the Canadian taxpayers, a fact that Almost finds disconcerting as it constitutes a major share of profits for various agencies.

A prominent case in point is Premier Health America, a Quebec-based company that recently acquired Staffing Solutions, one of the largest private healthcare agencies in British Columbia. The firm, flaunting plans for expansion, was highlighted as a stock to watch on the TD Waterhouse investing site.

A similarly ambitious stride is made by Calain, another Canadian-born company, and Staffy, both providing nurses to hospitals. The latter is witnessing rapid revenue growth, further fuelling this burgeoning trend.

On the front lines, nurses like “Mary,” a pseudonym used for privacy purposes, find agency work offering more control over hours and significantly better pay. This dual advantage seems to appeal to many nursing professionals, fed up with long hours, stress, and a failing system.

However, the cost to hospitals is steep. For instance, Toronto’s University Health network reportedly spent $915,786 on temporary nurses in 2018-2019, a cost that spiraled to an overwhelming $10.9 million by 2022-2023.

Complicating the situation further are the insufficient regulatory measures on agency fees, leading researchers like Ivy Bourgeault from the University of Ottawa to label the development as an ‘insidious privatization’. The need for deeper investigation is unequivocal, with the unanimous demand for safer, better nursing practices.

The issue is further exacerbated by experienced veteran nurses like Kim Bauer, unsettled by the vast disparity in compensation. She laments the lack of reassurance for her three decades of experience, relegated by the advanced wages of agency nurses. The added pressure and inconsistency in care from transient nursing staff only magnifies her distress.

As a testament to the escalating issue, Damien Contandriopoulos, a nursing professor at the University of Victoria, spill grave warning about hospitals being predominantly staffed by traveling nurses. Such a scenario puts the remaining nursing staff under oppressive strain, and potentially risks patient safety.

The silver lining in this cloud of uncertainty comes in the form of hospital strategies to retain nursing staff and source foreign nurses. There is a resonating unanimous agreement that nurses need more control over their workloads, less mandatory overtime, and competitive pay.

Sounding the alarm for provinces across Canada, Quebec, which is grappling with an uphill battle to deflect reliance on agency nurses, paints a stark picture. There’s an urgent call for a recalibration in the shift of focus from agency-based resourcing to staff retention, a misstep that could pave the way for tomorrow’s crisis.

As we inch towards the future, it becomes increasingly important to guard against the encroachment of private interests in the core health care system. Allowing worldwide investment firms to take the helm could create a disruptive ripple effect, intensifying the struggle to navigate through pressing health care issues.

In spite of mounting pressure and complex challenges, the goal remains clear. Nurturing a resilient healthcare system prompts collective responsibility, unyielding resolve, and circumspect strategy. Fierce as the storm appears, we cannot and must not lose sight of the need to ensure fairness and quality in the essential nursing sector, crucial to the ultimate health and well-being of all Canadians.