Agencies “ripping off” aged care providers, poaching staff amid workforce crisis

As aged care providers struggle to meet new mandatory minimum staffing requirements during a workforce crisis, we are hearing reports that agencies are cashing in on the issue, charging exorbitant fees, adding additional services to bump up costs, and poaching staff only to hire them back to providers at jacked up prices. Agency staff cost providers $17.04 per bed day according to StewartBrown’s 31 March 2023 Aged Care Financial Performance Survey Sector Report, an increase of $9.86 per bed day compared to the March 2022 period (when it was $7.18 per bed day). The additional charges for agency staff are not funded by the Government. The CEO of a Not For Profit aged care provider, who wishes to remain anonymous, told The SOURCE agencies are “ripping off” providers desperate for staff in regional areas, charging rates two to three times higher than usual, and adding to the costs with expensive hotels and transport. Respect CEO Jason Binder also told The SOURCE that they have seen an increase in agency costs.

“Unfortunately, in many circumstances, this appears to have been because they [agencies] are taking advantage of the desperation of providers, particularly in the regional areas where we operate,” he said.

“We have also had agencies poach our staff and then contract them back to us, forcing us to recruit internationally and ultimately replace them anyway. “Whilst it hasn’t been all agencies, the amount of unscrupulous activity in this space has certainly left a sour taste in our mouth towards agencies, that won't go away in a hurry. “We’re a Not For Profit organisation which means any money we make goes towards caring for older people. Personally, I detest spending resources on agencies when it could have gone to our residents.” The SOURCE: Many aged care employment agencies are providing a valuable service during the workforce crisis, but it is concerning that some are taking advantage of providers’ need for staff.