Manitoba Cuts Ties with Private Nursing Agencies to Strengthen Public Health

The Manitoba government has officially severed ties with over 70 private nursing agencies in a move aimed at reducing reliance on privatized health care. This decision will see only four companies authorized to fill nursing vacancies within the provincial health system effective from January 15, 2025. The agencies approved include Elite Intellicare Staffing, Integra Health, Bayshore HealthCare, and Augury Healthcare, as confirmed by Shared Health.

Supporters of this initiative argue it will save the province significant funds, potentially amounting to tens of millions of dollars annually, while critics express concern that the changes may exacerbate staffing shortages in the health sector. Health Minister Uzoma Asagwara described the initiative as “an important step that could have been taken, and should have been taken, years ago.” He emphasized the value of a public health system for delivering quality and consistent care.

The province’s decision follows a request-for-proposal process that commenced in December 2024. Asagwara noted that the previous administration had allowed a profit-driven environment where private agencies flourished, often at the expense of patient care. “It wasn’t sustainable, there were no standards and our government intervened,” he stated.

The Manitoba Nurses Union has expressed support for the government’s plans, with President Darlene Jackson indicating that the reliance on private agencies had grown excessively. Shared Health data reveal that spending on private nursing agencies surged from $26.9 million in the 2020-21 fiscal year to an estimated $80 million in 2024-25. As of October 31, 2025, the province had already spent $34 million on agency nurses for the fiscal year.

Jackson emphasized the need to reinvest the funds previously allocated to private agencies back into the public health system, which includes enhancing the provincial travel nurse float pool. She believes that recruiting and retaining nurses who formerly worked for private agencies is crucial for the success of this transition.

As of December 31, Shared Health reported that 555 nurses were working in the pool, with more than half having transitioned from private agency roles. The new arrangements mandate that agencies employ nurses directly, thereby improving accountability and oversight. Nurses will now work exclusively for one private agency, which is responsible for ensuring compliance with necessary training and qualifications.

While many are optimistic about this shift, there are concerns regarding its impact on staffing, particularly in rural areas. One anonymous owner of a Manitoba-based nursing agency reported a drastic profit decline of about 50 percent and a loss of up to 200 staff over the past year. He voiced worries that restrictions might lead nurses to seek opportunities in other provinces, thereby exacerbating staffing issues in the region.

The government’s focus on cost reduction has drawn mixed reactions. Kathleen Cook, the Progressive Conservative health critic, acknowledged the goal of minimizing expenses associated with private agency nurses but cautioned that patient care must not suffer, particularly in areas already experiencing shortages.

Asagwara countered this concern, indicating that some nurses who joined the travel float pool are transitioning into permanent roles within the public system. The minister cited progress in the Prairie Mountain Health region, where the authority has managed to cut private nurse spending by 14 percent as part of a directive to reduce costs by 15 percent before March 2026.

The Manitoba government’s decision represents a significant shift in health policy, aiming to strengthen the public system while addressing the challenges posed by private nursing agencies. The future of healthcare staffing in the province will depend on effective recruitment and retention strategies as this new framework is implemented.