TORONTO — In a groundbreaking move aimed at increasing accountability in Ontario's healthcare system, the provincial government has introduced a proposal that would require health staffing agencies to publicly disclose their billing rates.

This proposal comes as hospitals and long-term care facilities grapple with soaring costs, currently estimated at around $1 billion annually to hire temporary staff at rates that can be exorbitantly higher than those paid to full-time employees.

While this is a significant step towards transparency, there are hopes among critics and advocates that it might lay the groundwork for tighter regulations to combat the inflated charges from temporary staffing agencies, which can sometimes bill hospitals two to three times the rate of regular staff.

The legislation, unveiled by Health Minister Sylvia Jones earlier this month, would not only compel staffing agencies to report their pay rates but also empower the minister to make some of that information publicly available.

“This will enhance our ability to track usage trends and assess the impact of temporary staffing in our healthcare system,” Jones noted, although she stopped short of promising future regulation based on the data collected.

Industry leaders are cautiously optimistic.

Lisa Levin, CEO of AdvantAge Ontario, representing non-profit long-term care homes, commented on the importance of this initiative.

“It’s essential to have clarity on what agencies charge, and while temporary staffing agencies play a vital role in our system, we need to prevent price gouging by some less scrupulous providers,” she stated.

A stark disparity in pay rates has been highlighted by recent reports.

Recent reports reveal that registered nurses employed directly in long-term care earn an average of $40.15 an hour, in stark contrast to the average $97.33 per hour charged by staffing agencies.

The range of agency rates is even more bewildering, with hourly wages for nurses climbing as high as $139.65 in some instances.

According to a November 2023 report obtained by The Canadian Press.

Hospitals and long-term care homes were predicted to spend about $600 million on agency nurses alone during the 2022-2023 fiscal year, marking a staggering 63% jump from the previous year.

When factoring in personal support workers, the total expenditure soared to over $952.8 million.

The Ontario Hospital Association's President Anthony Dale expressed support for the proposed legislation.

Noting the collaborative efforts with government to lessen the reliance on agency nursing.

"This requirement provides a crucial first step toward addressing the high costs associated with temporary staffing. It could encourage agencies to reconsider their fee structures and inform future governmental policies," Dale said.

However, some politicos, like NDP health critic France Gelinas, argue that the proposal falls short of comprehensive reform.

“What they’ve offered is merely the bare minimum, a small step that delays the real solutions we require to tackle this issue effectively,” Gelinas commented, implying that the need for robust regulations remains urgent.

As Ontario navigates this issue, stakeholders from various sectors are watching closely.

Hoping that the proposed changes will lead to a more sustainable and cost-effective healthcare system for all residents.

Could this be the pivotal moment Ontario needs to rein in runaway staffing fees?

Only time will tell.