Manitoba Cuts Private Nursing Agencies, Restricts Staffing Options

The Manitoba government has officially limited its reliance on private nursing agencies by severing ties with over 70 companies that previously filled staffing gaps in the provincial health care system. As of January 15, 2025, only four agencies will be authorized to provide nursing services at public facilities, according to Shared Health.

Health Minister Uzoma Asagwara stated that this decision is a significant step towards enhancing the quality of care in the province. “This is an important step that could have been taken, and should have been taken, years ago,” Asagwara emphasized. Advocates for the change argue it will prevent the government from spending an estimated $80 million on privatized health care in the upcoming fiscal year.

The selected agencies—Elite Intellicare Staffing, Integra Health, Bayshore HealthCare, and Augury Healthcare—were awarded contracts following a request for proposal process initiated in December 2024. This decision marks the end of a fragmented system that allowed numerous private agencies to operate without stringent oversight.

According to Shared Health, spending on private nursing agencies has dramatically increased, rising from $26.9 million in 2020-21 to an estimated $80 million in 2024-25. By October 31, 2024, Manitoba had already spent $34 million on agency nurses for the current fiscal year. Critics of the previous government’s approach highlight the unsustainable nature of a for-profit model that prioritized profits over patient care.

Darlene Jackson, president of the Manitoba Nurses Union, voiced strong support for the government’s decision. “This is what we believe needs to happen,” she said. “It just seems that the number of agencies in Manitoba was growing every day, and it became very worrying when we looked at the cost.” Jackson stressed that the funds previously allocated to private agencies should be reinvested into the public health system.

The changes will also enhance accountability and oversight in the health system. Under the new contracts, agencies must directly employ nurses rather than relying on informal arrangements. Nurses will only be permitted to work with one private agency, which will be responsible for ensuring that they meet the necessary qualifications and training requirements.

Shared Health reported that as of December 31, 2024, there were 555 nurses in the provincial travel nurse float pool, with more than half having transitioned from private agencies. Jackson expressed hope that many of these nurses would remain in the public system, but noted the importance of government efforts to retain them.

The impact of the government’s decision on staffing levels and care quality remains a concern. A Manitoba-based private agency owner, who requested anonymity, claimed that his business has experienced a 50 percent drop in profits and lost approximately 200 staff over the past year. “From what I am hearing, a lot of these nurses are applying to other provinces because Manitoba is trying to restrict them,” he said, warning that rural facilities may face significant challenges in staffing.

Opposition voices, such as Progressive Conservative health critic Kathleen Cook, acknowledged the intent behind reducing private agency costs but cautioned against compromising patient care, especially in underserved areas. Cook remarked, “I’m not sure that the current NDP government has dealt with any of the reasons that nurses go work for private agencies in the first place.”

In response to these concerns, Asagwara highlighted encouraging signs of progress, noting that some nurses from the travel float pool are beginning to take permanent positions within public facilities. He cited the Prairie Mountain Health Region as an example of effective cost reduction, stating that it has managed to decrease private nurse spending by 14 percent towards a mandated 15 percent reduction target by March 2026.

As the province transitions away from a reliance on private nursing agencies, the focus will now shift to strengthening the public health care system and ensuring that it is equipped to meet the needs of Manitobans.