Labor says soaring cost of locums driving up health budget

Spending on locum doctors and nurses shows the government is failing on recruiting and retaining health workers, Labor claims after an RTI reveals the cost.

Shadow Minister for Health Ella Haddad outside the RHH. Picture: Chris Kidd

Health department spending on locum doctors and nurses to plug gaps in the state’s hospitals has more than tripled to top $180m last financial year, Labor says.

Opposition health spokeswoman Ella Haddad said the government relied on huge numbers of agency and locum staff across the health system — instead of directly employing health workers.

She said agency and locum staff cost two to three times more than directly employing health workers.

Labor health spokesperson, Ella Haddad, speaks to media outside the Royal Hobart Hospital.

“It was revealed during Estimates that the government spends at least $76m on agency nurses and at least $105m on locum doctors,” she said.

“That’s $182 million per year on outsourced staff.”

Documents obtained by Labor under right to Information laws show agency nursing costs have increased from $14m in 2020-21 to almost $77m in 2023-24 and medical locum costs have blown out from $33m in 2019-20 to more than $105m in 2023-24.

“These shocking figures make it clear the Liberal minority government is failing to recruit and retain health workers, and it’s part of the reason they’ve completely blown the budget,” Ms Haddad said.

“How much worse is it going to get under the Liberal minority government? On this trajectory, agency and locum staff costs will hit half a billion dollars by the end of the decade.

“The government should be focused on building a sustainable Tasmanian Health Service by addressing staffing levels, working conditions, and directly employing a strong and stable workforce.”

Acting Minister for Health, Mental Health and Wellbeing Roger Jaensch. Picture: Linda Higginson.

Acting Minister for Health, Mental Health and Wellbeing Roger Jaensch said the government was determined to ensure hospitals were fully staffed.

“Labor have confirmed they would put patient safety at risk by refusing to employ locum doctors when demand increases,” he said.

“That means – under Labor – no extra nurses, doctors, or mental health professionals when patients need them the most.

“Almost 1,000 more health workers have been employed across our health system over recent months.

”If there are health workers out there wanting a job – we are employing them.

“Locum doctors ensure Tasmanians receive the care they need.”

The state budget revealed the government faces a difficult task of reining in health spending after the health department blew its budget by $300m in 2022-23.

The department will attempt to maintain service delivery at the same time as reducing its employee expenses by $130m next financial year and take further measures to meet government efficiency dividends of more than $200m over the next four years.

Originally published as Labor says soaring cost of locums driving up health budget