The Study In Brief
COVID-19 has piled troubles on top of troubles for Canada’s health-care sector and its workforce. Some believe it to be in crisis, collapsing even, the result of a shortage of workers, who have become ill themselves, burned out, resigned or retired early, or the result of having too few educated and trained workers in the first place.
Shortages usually call for the education, training, qualifying, and hiring as soon as possible of many more workers. But we have to be careful. The shortages are in specific occupations. “Better” needs as much attention as “more.”
This report analyzes the challenges in Canada’s health-sector workforce, focusing on imbalances between supply and demand, particularly for those most concerned with the provision of direct, hands-on support and care: physicians, nurses, and personal support workers (PSWs). It then makes recommendations on how to govern and strengthen the country’s cherished health system.
Despite public perceptions, Canada's supply of healthcare workers has been increasing significantly in most major occupations even throughout the pandemic. Work absences are not much higher than before; and for the most part, the proportion of workers in what is called direct care as opposed, for example, to administration, is both high and stable.
Yet demand has exceeded supply. The job vacancy rate for healthcare jumped to 5.8 percent by the second quarter of 2022, with that in nursing and residential care facilities (including nurses, personal support workers (PSWs) and others) higher still. Shortages also exist for family physicians, psychiatrists, geriatric and other specialists dealing with conditions affecting the elderly.
The stresses associated with COVID-19 have taken parts of the health sector beyond their limited capacity. Worsening conditions for many workers have worn down the resilience of nurses and personal support workers particularly, who have opted recently to take less stressful and/or better compensated employment available elsewhere in healthcare. Earnings, net of overtime, in healthcare have grown at an annualized pace of 2.4 over a two-year period ended in July 2022, compared to 4.1 percent for all industries. Many of the worker shortages are in hospitals yet wage gains there have been especially modest.
Many of the past and present health-sector human resource problems will likely worsen without appropriate planning, primarily due to population ageing.
Among our recommendations:
- The “system” needs a governance structure, starting at the provincial/federal level, to better collect data, analyze present and future challenges and make policy changes.
- The fragmented data from provinces and federal agencies such as the Canadian Institute for Health Information (CIHI), Statistics Canada and Canada Health Infoway need to be consolidated with improved timeliness and more comprehensive coverage.
- Accelerate the rate of development and expansion of Integrated Care Systems and similar care teams to ensure Canadians have ready access 24/7 to a family physician, nurse practitioner, or other provider of primary care services. They should be the “gate-keepers” to all other components of Canada’s health system.
- Look to expand the scopes of practice of health professionals/providers with a view to minimizing duplication of skills, optimizing productivity and efficiency, and fostering teamwork, substitution, and interdependency among them.
- Promote the training, accreditation and success of students in less popular generalist programs. Enhance the status, professional standing, and rates of compensation of providers of general services in short supply like family medicine, geriatrics, rheumatology and PSWs, and improve working conditions to increase retention.
- Maintain or accelerate recent momentum with the licensing and employment of internationally educated health workers.
- Review the curricula and experiential content of training programs; for example, to better prepare graduates for family and community care roles.
COVID-19 may have a silver lining if it awakens the public, politicians and policymakers to the long and well-studied need to get on with making changes to Canada's cherished healthcare system to meet the challenges of ever-changing times.
Introduction
COVID-19’s effects, many tragic, continue to stress us all. With hospital emergency department closures and long wait times for pretty much everything, the pandemic’s strain on the workers and institutions that provide us with healthcare and related support has become a hot topic.
Some believe the healthcare system to be in crisis, collapsing even, the result of a shortage of workers, who have become ill themselves, burned out, resigned or retired early, or the result of having too few educated and trained workers in the first place.
Ironically, the pandemic may have a silver lining. It may awaken the public to the long and well-studied need to get on with making changes to Canada’s cherished healthcare system to meet the challenges of ever-changing times. The system is essentially unchanged since its development decades ago in boom times to serve a much younger population. COVID-19 has strained an already stressed system with predictable results. With increasing public awareness of the urgency of the need for fundamental change, our governments, health professional and institutional leaders together may find the courage to pick up the challenge of making fundamental change, long overdue. If they do, the stresses of COVID-19 will have done healthcare and support in Canada a power of good.
We will have to be careful. Shortages usually call for the education, training, qualifying, and hiring as soon as possible of many more workers, including from overseas. But the data we have are incomplete, often outdated, unstandardized and non-connected and this should raise a big cautionary flag. They show Canada’s supply of healthcare workers to have been increasing significantly in most major occupations even throughout the pandemic, that work absences are not much higher than before; and for the most part, the proportion of workers in what is called direct care as opposed, for example, to administration, is both high and stable.
But the emergency room (ER) closures and wait-list problems reported in the media are real and need to be resolved quickly. Increasing the supply of health-sector workers is a necessary but insufficient response to the troubles in the sector. We want our system of health care and support to meet our needs well into the future – a difficult challenge given that the Canadian health system’s results are mediocre despite our devoting one of the highest shares of GDP to healthcare in the world (Figure 1). “Better” needs to receive as much attention as “more.”
This report first analyzes the challenges in Canada’s health-sector workforce, focusing on imbalances between supply and demand. The Canadian health labour market encompasses more than 20 occupations. This Commentary deals mainly with those most concerned with the provision of direct care to those suffering illness and infirmity: physicians, nurses, and personal support workers (PSWs).
Many of our recommendations will be disruptive and hard to implement quickly. They will demand better data to support planning and policy changes to meet evolving needs. The reformed system will have to deal especially with caring for and supporting our fast-growing population of elderly people in their most preferred and appropriate locations – their homes and communities and in institutions only when they can no longer age safely with support at home. About one in six hospital beds, the most expensive accommodations of all, are now filled by someone who should receive care elsewhere.
Enabling effective and efficient teamwork for care and support will require changes to the scopes of practice of many health professions, particularly those providing primary care.
To beef up the supply of qualified practitioners to meet the system’s ever-changing needs, our universities, colleges, clinical training institutions, and accrediting bodies need strategic policy guidance to develop short courses, concentrated programs, and more balanced selection criteria.
Developing a comprehensive human resource plan is essential and will inevitably point to the need for more workers in some fields, but not all. More personal support workers (PSWs), for example, will be needed. Education, training standards and recruitment will have to be changed for others, especially in primary care.
Strategies are overdue to make everybody’s work more satisfying and rewarding and their mutual respect higher; the result, effective teamwork, is essential, especially in primary, home, and community care. This must be achieved as quickly as possible to reduce high attrition rates, especially evident for PSWs and nurses. Without improving retention, no number of new recruits will suffice.
The institutions and people who provide Canadians with health-related care and support are stressed. Although our “system” as a whole is not yet in crisis, critical parts of it may be. Continued dithering and timidity on the part of our leaders, both in government and within the health sector, could well be as much a hair-trigger for crisis as the return of polio or a new lethal strain of COVID-19 this fall. It is time for all to step up and make change happen. Canadians need and deserve no less.
Supply-Demand Imbalances for Health-Sector Workers
Job vacancies can be a measure of an excess of labour demand over supply. Pre-pandemic, the job vacancy rate – job vacancies as a percentage of all occupied and vacant jobs – across all industries in Canada was quite low and those for healthcare and its major sub-categories lower still (Table 1). The rate for all industries had risen somewhat by the second quarter of 2019 and by then the rate for healthcare had risen to 3.3 percent, almost matching that for all industries. The rise in vacancies for nursing and residential care facilities was particularly noteworthy, almost doubling to a level above that of all industries. Clearly, demand for workers in that category was building prior to the pandemic’s onset.
The overall job vacancy rate jumped to 5.9 percent by the second quarter of 2022, the rate for healthcare to 5.8 percent, with that in nursing and residential care facilities higher still. At that point, there were 109,145 vacant positions in the health-care industry of which 37,270 were in nursing and residential care, the latter a combination of nursing and PSW occupations. In addition, job vacancies were high for “technical” and “assisting” occupations in healthcare (for details by occupation, see online Appendix A).
The portion of vacancies that lasted 90 days or more (long-term vacancies) in nursing doubled from 2015 to reach 55.6 percent in the second quarter of 2022. Throughout the 2015 to 2022 period, the percentage of long-term job vacancies was persistently higher for nurses than the average of all occupations in the economy, indicating the nursing positions have long been especially difficult to fill.
In the second quarter of 2022, there were 24,415 job vacancies in professional occupations in nursing. Below in the section on international comparators, we calculate that matching the median number of nurses per capita in the G7 would require more than another 45,000 nurses. This suggests that relative to the G7 countries, Canada has fewer nursing positions and is failing to fill many of them.
While data are not available from all provinces and territories, evidence from Ontario shows that not only job vacancy rates have substantially increased over time, but also turnover rates (see online Appendix B).
Family Physicians and Psychiatrists: We examine job postings, postgraduate exits, and choice of postgraduate training by Canadian Medical Graduates (CMGs). Overall, a modest shortage of physicians exists in Canada. We have fewer physicians per capita than the medians of OECD countries and the G7. The number of physician job opportunities rose from 2019 through 2021, with family medicine accounting for slightly more than half each year (Table 2). The Canadian Medical Association’s comparison of job postings for physicians with the number of newly qualified doctors shows there has been a significant and growing excess of job postings since tracking began in 2013 (Figure 2). The imbalances are not evenly distributed; shortages are dominated by family medicine and to a lesser extent psychiatry.
Those findings are augmented by data from the Canadian Resident Matching Service (CaRMS) on the first choice of training specialty/discipline programs by new Canadian Medical Graduates (CMGs). The resultant analysis is only indicative; not all positions are posted, some are filled by foreign trainees, and some CMGs do postgraduate training outside Canada.
However, the data strongly indicate the gaps cannot and will not be filled by new entrants into post-graduate training. First, most specialty training programs are long and the through-put slow. Second, the fields facing growing and anticipated patient needs are diminishing in trainee popularity.
Whereas family medicine was the first choice of 42.9 and 41.1 percent of CMGs in 2019 and 2020, the CaRMS data show it to be the first choice of only 31.4 percent in 2021 (Figure 3); the total number of first choices was 914, compared to job postings of 2,448 in 2021 and 2,055 in 2020.
Psychiatry was the first choice of 205 CMGs in 2021, roughly in line with the number of psychiatrist training positions of 191 in 2020 and 207 in 2021. But in 2020, 322 job postings for psychiatrists were matched with only 191 qualified applicants while the comparable numbers for 2021 were 408 and 207, one of the largest gaps between available positions and occupational choices. This is especially worrying given the fact that Canadians suffering from mental health issues already experience particularly long wait times and are generally not considered well served.
Furthermore, if, as is likely, the small number of current and prospective geriatric and rheumatic disease specialists become consultants to primary care teams on how to care best for ageing patients, the clinical workloads of family physicians and nurse practitioners, already in short supply, will become heavier and the shortages more acute.
A new program at Queen’s University focusing on training specialists in family medicine can potentially be a useful model to address supply shortages in this specialty (Box 1). Efforts in this regard will need to take into account the dramatic shifts in the characteristics of family medicine specialists, including a prominent increase in the share of women (Box 2).
Areas with Physician Surpluses: In contrast, physician surpluses appear to be building in some specialties. Given Canada’s low birth rate, a surplus might be expected in paediatrics, yet there is no significant imbalance between job postings and newly qualified doctors or prospective entrants into the field. Potential surpluses are indicated in several sub-specialties of surgery (general, vascular, neuro, obstetrics and gynecology, ophthalmology, otolaryngology, and orthopedics) and medicine (cardiology, infectious disease, and respirology), and in diagnostic radiology. While the overall numbers tend to pale relative to family medicine, there were excesses of applicants over postings for 2019-2021 in all these specialties; similar mismatches, in total numbering up to hundreds, have applied over several years.
These may be examples of the need for deeper analyses of how such specialists are now being deployed. Patients’ long wait times for surgery may be attributable to several factors, one being constrained hospital operating room capacities. Given the current experience with COVID-19 and the new-found threat of monkeypox, caution should also be exercised in forecasting a surplus of infectious disease specialists.
Imbalances for Personal Support Workers
Since COVID-19 began there has been increased awareness of the need for substantially more personal support workers (PSWs). Unfortunately, the absence of data makes it difficult to know even how many such workers are in the sector much less how many might be required to satisfy demand. CIHI has addressed the issues as follows:
“Unregulated health care providers, such as personal support workers, play a large role in providing support to LTC residents. They make up a substantial portion of healthcare workers who assist with activities of daily living for one of Canada’s most vulnerable populations. The lack of consistent, comparable pan-Canadian data for these care providers makes it difficult to better understand the LTC workforce. Some provinces are moving forward to close this data gap, including establishing new registries or using current ones to collect standardized data. CIHI will continue to work with the provinces and territories in helping to define information needs and to promote the standardized collection and reporting of these important data and information, all of which will support planning, policy development and the ability to respond to priority issues.”
The categorizations in the Statistics Canada job vacancy survey are not particularly helpful. PSWs would likely be captured in both “nursing and residential care facilities” and in “assisting occupations in support of health services.” Vacancies in the latter category were 23,110 in the second quarter of 2022, up from 14,790 in the second quarter of 2019 and 7,695 in the second quarter of 2015. We see here a familiar pattern. Vacancies, extremely high now, jumped after 2019, but they were already high and longstanding prior to COVID-19.
We do not know the number of Canada’s PSWs like we know the number of members of self-regulated professions such as physicians and nurses. Therefore, assessing demand and supply balances for PSWs is a wild guess. Little is known about this workforce despite compelling evidence that its services are essential and currently in great need. Most likely, shortages have existed for some time, are very large, have been growing rapidly, and will almost certainly grow even more to meet the needs, if not the demands of an ageing population.
As shown below in the section on international benchmarks, Canada has 37 percent fewer long-term care workers per person aged 65 and over compared to the median of OECD countries. As noted above, this total includes nurses and others as well as PSWs so caution must be exercised to not double count the supply of any occupation. In our estimation, closing that gap to the OECD median would require adding more than another 140,000 workers to the long-term care sector. That number will undoubtedly rise further as the cohort aged 75 and over doubles over the next few decades, a substantial proportion of which will be for PSWs.
Canada has a relatively small, under-serviced home-care sector. Developing and properly staffing home care would provide better health outcomes, greater satisfaction to older adults, and do so at a lower cost than would an expansion of institutional long-term care. But were that to be done, the re-allocation would not change much the reality of the acute need for many more PSWs. In fact, it is likely that a shift to more home and community-based support and care would increase overall demand for PSWs and amplify that for other sorts of support workers who provide meals-on-wheels, transportation services, social programs, respite centres, et cetera. The workforce implications of shifting from institutional long-term care to other forms of support for the ageing population is something that would have to be examined in a comprehensive approach to health human resource planning.
While job vacancy data give little insight into the PSW labour market specifically, a 2020 study by the Ontario Ministry of Long-Term Care reveals:
- Of 100,000 workers in Ontario’s LTC sector, 58,000 are personal support workers, 25,000 nursing staff and 12,000 allied health professionals and programming support;
- Counting institutional, home, and other work sites in 2018, there were a total of 100,000 PSWs in Ontario;
- Between 2016 and 2018 the number of students enrolled in PSW training programs declined;
- Attrition of PSWs is high in absolute terms and relative to other occupations. Forty percent do not enter the health-care sector on graduation or leave within a year; after five years only half remain in the sector;
- Overall job tenure declined between 2015 and 2017 prior to the onset of COVID.
Symptoms of Shortages
Do Long Wait Times Reflect Physician Shortages?
The Commonwealth Fund has ranked Canada last among 11 developed countries surveyed on wait times for specialist care.
The gaps between job postings for psychiatrists and fully qualified doctors and CMGs entering psychiatry training programs suggests shortages in that domain, as do the well-known difficulties patients with mental health problems have in their timely resolution. Despite psychiatrists (4,189)
The Difficulty in Finding a Primary Caregiver Suggests a Shortage
Statistics Canada reported that 14.5 percent of Canadians aged 12 and over (roughly 4.6 million people) were without a primary care provider in 2019.
International comparisons by the Commonwealth Fund show Canadians’ access to primary care is inferior to most other high-income countries. Of 11 countries, Canada ranks 3rd worst in having a doctor or a regular place to go to for medical care and 2nd worst in ability to get a same-day or next-day appointment with a doctor or nurse.
Employment Growth in the Health Sector
Despite reports of ER closures and gaps in the system, in line with rising job vacancies, employment has been increasing across the major health occupations over time.
Statistics Canada’s Employment and Payroll Survey (SEPH) shows brisk growth in employment of health-sector workers before and during the pandemic (Table 4).
Nevertheless, concerns about the adequacy of the supply of health workers have continued to increase, largely revolving around nurses and residential care workers. From December 2015 to December 2019, employment in nursing and residential care facilities grew at an annualized pace of 2.9 percent, somewhat faster than for all healthcare workers. Employment has continued to grow in this category during the pandemic, but much more slowly at 1.2 percent from December 2019 to July 2022. Still, the annualized growth rate over the entire period to July 2022 is an impressive 2.2 percent, outstripping growth in employment in all occupations and almost doubling the rate of growth in the population. Finally, employment in the whole health sector expanded 2.8 percent from December 2019 to July 2022, far outstripping growth in economy-wide employment and in population.
Strong Growth in Certified Healthcare Professionals
Similar to Canada’s Employment and Payroll Survey (SEPH), CIHI data on professional certifications support the same story of continued growth in the health system’s workforce throughout the pandemic.
The total of certified physicians and workers in nursing occupations has grown since 2016 significantly faster than the Canadian population (1.8 versus 1.2 percent), with some occupations growing considerably faster – nurse practitioners (8.9 percent), family physicians (2.2 percent), physicians collectively (2.3 percent) and specialists (2.4 percent). The growth rate for regulated nurses has been below that of physicians, but was still above that of the population (Table 5).
With the addition of provisional data for 2021, we have a clearer picture of what has happened to the supply of health professionals since the pandemic struck.
No Cause for Complacency: A cautionary note for future planning is that many new certified health workers since 2020 have been trained in a foreign country or are retirees returning to work, especially in the case of nurses (see Box 3). The heightened pace of new foreign-trained workers could continue for several years given the backlog and how many cases are presently in the process of certification.
Returnees from retirement are filling critical gaps at the moment, but they may not stay in the workplace for long given their prior retirement decisions and their advancing age. CIHI data show that much of the growth in the supply of health professionals in 2020 and 2021 came from those returning to practice from retirement or other departure. Registered nurses make up the category with the largest number at 4,189 in 2020 and 8,290 in 2021; these numbers are illustrative only and are certainly understatements because for both years there are missing entries from some provinces and territories. Depending upon how the data are interpreted
Factors Affecting Resources for the Healthcare Workforce
The high job vacancy rates and staffing shortages in the face of strong employment growth in the health sector led us to consider some factors that may impinge upon the effective supply of workers where they may be needed most.
Staff Moving Out of Direct Care
One of the anecdotal explanations heard of late for shortages of health workers is a shift away from direct care to other forms of work. CIHI publishes data on the percentage of selected health workers in direct care, in total and for major occupations. Registered health professionals provide “direct care” when they work in hospital settings, nursing home/long-term care facilities, or provide home and community care services. Most health professionals in each occupational group provide direct care, and no shift away from direct care is evident during 2020 or 2021 (Figure 4).
CIHI provided us with provisional numbers for 2021 (subject to revision) to permit a deeper dive for nursing. We use Total Regulated Nurses excluding Registered Psychiatric Nurses (RPNs) due to missing information on the latter in the CIHI data.
From 2016 to 2021. at least 90 percent of regulated nurses worked at a job consistent with their nursing education and training (Table 6).
The number of nurses in direct care working primarily in hospitals increased in 2021, but at the moderate pace of 1.6 percent. The number in nursing homes/LTC facilities fell 0.3 percent in 2021, following a modest increase in 2020. This compares to an annual average growth rate of 6.3 percent for 2020 and 2021 for other work settings; i.e., a shift to “other” work sites.
The data do not suggest nurses are leaving the workforce, nor that they are shifting away from direct care. But they do highlight a shift away from some institutions and some jobs, where they are arguably in great need, toward other work sites.
There are many references in the media to increased absences from work in the health sector during the pandemic. Statistics Canada measures the total days lost per worker in a year for full-time employees.
Notably, the 16.1 days lost in health occupations in 2019 compares to 10.3 days for all occupations (Table 8). The higher absences in health, persistent as they have been in recent years well before the pandemic, are a factor to consider in human resource planning along with the needed supply of workers and particularly the working conditions in the sector; the latter may well be a leading cause of abnormally high absences.
Factors Affecting Demand for Healthcare Services
Above we have documented that the supply of human resources in the health sector has been increasing. Now we turn to the role demand may have played in creating the imbalances that appear in the job vacancy data and in accounts from segments of the health sector.
From December 2019 to June 2022, the Canadian population increased at an average annual rate of 1.2 percent. Ceteris paribus, that should translate into an equivalent growth in the demand for health services. CIHI estimates that population ageing adds 0.9 percentage points to the growth of healthcare spending per annum.
In this section, we use different sources and various areas of healthcare to assess the impact of COVID-19 on the healthcare system.
Hospitals:
A CIHI study on COVID-19 and hospitals
- from April to December 2021, there were more than 53,080 hospital stays in Canada (excluding Quebec) for patients with a diagnosis of COVID-19;
- During the same period and jurisdictions, more than 144,970 Emergency Department (ED) visits for COVID-19 were reported;
- From January 2020 to March 2021, there were more than 65,615 hospital admissions and 158,860 ED visits (data updated February 3, 2022, to include hospitalizations from Quebec);
- More than 1 in 4 (26 percent) hospital admissions included an intensive care unit (ICU) stay.
The 53,083 hospitalizations due to COVID-19 should be put in the context of more than 1 million hospital visits (excluding Quebec) over two-thirds of a “normal year,” effectively a bit more than a 4 percent increase. That is certainly significant. The pressure on the low-capacity ICU sub-sector is especially noteworthy. However, CIHI notes other factors lowered hospitalizations, such as postponements of surgeries, fewer other illnesses due to COVID-19 protocols such as masking and social distancing. In total, hospitalizations went from 2,359,324 in 2019-2020 to 2,116,880 in 2020-2021 for a decline of 10.3 percent. The number of days of hospitalizations declined a similar 10.7 percent; on average people were not remaining longer in hospital.
The hospitalization data do not reveal an overall increase in demand for services at these institutions although there has been a shift toward ICU units. The human resource need in ICUs is heavy and expensive; according to CIHI a COVID-19-related hospitalization with ICU admission is estimated to cost over $50,000, more than three times the cost of a hospital stay without an ICU admission.
Alternate Level of Care (ALC) Load in Hospitals:
Alternate level of care (ALC) describes patients who occupy hospital beds but do not require the intensity of services provided. Decreasing the number and duration of ALC stays was a strategy to free hospital resources to accommodate COVID-19 cases but the strategy was not implemented. A CIHI study found the incidence of ALC cases in hospitals increased slightly over the COVID-19 period studied. Overall, for 2020-2021, CIHI reports 16.9 percent of patient days, or more than 2.7 million days, were in ALC.
Family Doctors:
As part of its special COVID-19 study, CIHI looked at “activities” (visits, consultations, psychotherapy, deliveries and procedures provided by family physicians, medical specialists, and surgeons) since 2019. Physician activity dropped in early 2020, then returned to the 2019 level through early 2021. Only in the last month of the study period, March 2021, did physician activity rise an average of about 7 percent above the 2019 base across the five jurisdictions reporting (Table 9).
Reconciling the Available Data and the Sense of Crisis at Hospitals
Data available from CIHI, Statistics Canada and other sources tend to be aggregated at a high level. At the most general level, they do not suggest that the gap between growth in the supply and growth in demand for human resources in the health sector is compatible with the cries of crisis in the media, even collapse. Diving as deeply as these data permit provides some clues as to a reconciliation. These include only modest growth in the increase in nurses in hospitals, a slight decline in 2021 in nurses in long-term care, and some increase in job absences. Still, there is a chasm between the data available and the reality being expressed, especially by hospitals. A proper human resource planning strategy would develop more disaggregated data to peer into this chasm. In the meantime, consultations with players in the sector should be done to determine what is happening “on the ground.”
We complemented our data-based analysis with consultations with senior management at two Ontario hospitals. The narrow base for the consultations suggests our observations should be treated as illustrative only. The managers of both hospitals referred to the increased human resources needed to serve their share of the 3,100 bed increase announced by Ontario (an 18 percent rise).
The increased resources required due to population aging may have been underestimated, based on CIHI’s estimate of the impact on spending. They repeated anecdotes about the shortages of nursing staff, but averred that the challenges are nuanced in ways that slip below the radar screen of the aggregated data. They pointed out, for example, that a recent nursing graduate is not a full substitute for a more experienced departed worker. The nursing shortages are acute in specific areas of direct care including intensive care units, emergency departments and medical/surgical in-patient wards. This suggests we must be able to peer into the “direct care” box to examine its components. Hospitals are finding experienced nurses are shifting away from these critical areas for other positions offering them better work-life balances. They are limited in what they can offer nurses as incentives to remain in these high patient-contact positions.
The Money Factor: Are Wages Responding to Demand?
Economics suggests that when demand for something exceeds supply, the price will rise. In this case, if the demand for health workers exceeds supply, wages (and other conditions of employment) should rise to attract new workers and retain those already in the field. There may be lags in the reaction, however, due to the presence of multi-year labour contracts. Also, health is a highly regulated sector where government policy may for a while override economic forces. An example is the imposition in Ontario of a 1 percent annual wage increase for all civil servants, including those in the health sector, from 2019 to 2022. Most provincial governments are also trying to rein in their deficits and lower their debt burdens following the economic and fiscal shock of COVID; this may be leading to wage restraint.
In the health sector, average weekly earnings including overtime increased at an annualized pace of 2.0 percent from July 2015 to July 2019, a bit stronger than the pace across all occupations and around the rate of CPI inflation (Table 10). The annualized pace of earnings growth picked up to 2.8 percent in health occupations from July 2019 to July 2022, but this was below that of 4.2 percent across all occupations. The pick-up in earnings growth of late is particularly pronounced for nursing and in residential care facilities where the annualized pace of 0.9 percent from July 2015 to July 2019 jumped to 7.3 percent from July 2019 to July 2022. However, wage gains in hospitals have been particularly modest; 2.1 percent at an annualized rate since July 2019.
To detect whether wages are being bid up due to an excess of demand over supply for health-sector workers, overtime should be netted out of earnings’ gains. Overtime has become a more important component of earnings across all occupations since July 2019, and considerably more so in the health sector, particularly in hospitals (Table 11).
From July 2019 to July 2022, the gap in earnings’ growth between healthcare and all occupations grows once overtime earnings are stripped out. Earnings, net of overtime, in healthcare have grown at an annualized pace of 2.4 compared to 4.1 percent for all industries. Only nursing shows significant gains in wages. Note the modest earnings growth of 2.1 percent for hospitals slips to just 1.5 percent when overtime is excluded (Table 10).The much greater use of overtime combined with very modest increases in regular pay may explain part of the apparent growing discontent currently among workers in direct care at hospitals.
As job vacancies in the health sector rise it is interesting to see if the wages offered for the vacant positions are being bid up in an effort to attract more workers. The offered wage for vacancies grew at more than double the pace from the second quarter of 2019 to the second quarter of 2022 relative to the pace from the second quarter of 2015 to the second quarter of 2019 (Table 12). Of course, the rise in wages reflected to a degree the increase in inflation, not just tightening of the labour market. The pace of wage growth increased as well for healthcare and social assistance but, apart from ambulatory healthcare services, the rate of wage growth since the end of 2019 has been lower than for all industries. Wage offerings for vacant positions have been particularly modest in the hospital sector, well below that of all industries and the rate of inflation.
In conclusion, wages have not been rising appreciably in the health sector. Much of the gains that have been recorded simply reflect the greater use of overtime. Wage gains have been especially modest in the hospital sector, falling substantially in after-inflation terms.
International Comparisons for the Supply of Healthcare Workers
In this section, we present data on the number of healthcare workers in OECD countries relative to their respective populations. General inferences only should be drawn from the comparisons; the variations are large for total health-sector work forces and the mix of occupations varies greatly from country to country. Our comparisons focus on countries with some elements in common with Canada in and the G7; given the wide data distributions across the OECD, we tend to use medians rather than averages.
a) Total Health and Social Sector:
Canada ranks second last among G7 countries in terms of health and social employment per 1,000 residents. To reach the median (the United Kingdom) Canada would need to add almost 200,000 workers.
Even within the G7, it is difficult to make comparisons that are meaningful for Canada. Japan and Germany have older populations that, ceteris paribus, require a high density of health-sector workers (Table 13). The United States is an outlier in that it spends so much more on healthcare than any other OECD country. At the other end, Italy has a poorly developed health sector Canada would also not wish to emulate. This leaves only the United Kingdom and France as somewhat comparable to Canada. Almost 200,000 workers would need to be added to reach the intensity of health and social sector workers per capita in the United Kingdom; and in France somewhat over 100,000. It could be argued that Canada needs a higher intensity of healthcare workers relative to the United Kingdom and France due to Canada’s population being spread over a much larger geographical area.
b) Physicians: With respect to the supply of physicians, the range in the OECD
c) Nursing: Canada has the same nursing positions per capita (10.1/1,000) as the OECD median (10.1). The range extends from 2.7 in Turkey to 18.4 in Switzerland.
d) Long-term Care: For long-term care workers, who are a poorly defined admixture of nurses and PSWs, the OECD does not provide data for the United Kingdom and France. In Table 16, we look at the range of the 21 OECD members for which data are available. The median is 54 workers per 1,000 people aged 65 and over. At 34, Canada is 37 percent shy of that median. Canada would need to add slightly more than 140,000 workers to close the gap. Above we noted an Ontario report estimates 58 percent of the workers in long-term care in that province are PSWs. If we apply this portion to the international data, then PSWs would make up 81,200 of the additional workers needed to get to the OECD median.
It is generally acknowledged the best support systems for the elderly are found in Northern Europe. To provide support and care to 1,000 people aged 65 plus, Sweden has 116 workers in long-term care, the Netherlands 78 and Denmark 76 – all well over double the resource intensity in Canada.
Future Problems Are Emerging
By 2041, the number of Canadians aged 75 and over is expected to have grown by 3.5 million.
Given especially the advent of team practices and other manifestations of Accountable Care Organizations/Integrated Care Systems
Another area of growing concern is pain management. In 2019, there were only 18 pain medicine specialists in Canada.
COVID-19 has brought heightened awareness of the importance of public health. We have not seen the last of epidemics. Drummond and Sinclair have argued for a re-balancing within the health sector, adding the promotion of good health to the current almost singular focus on the restoration of ill health.
A Statistics Canada survey taken September to November 2021 may seem to send some more ominous signals about future shortages of health workers.
The data do not necessarily imply the respondents intend to leave the health sector or even the sub-sector in which they currently work. General surveys often indicate a high percentage of people expressing their intention to change jobs. For example, a survey by Ipsos for Randstad Canada found 43 percent of Canadians said they are likely to look for a new job in the upcoming year.
Nonetheless, in the interest of retaining the supply of health workers, managers need to pay to sources of concern that lead to attrition, including a desire to change jobs and its reasons such as job stress (Table 18).
Finally, likely future developments may well increase the demand/need for nurses, therapists, and personal support workers. If higher educational and broader training programs together with increased clinical teamwork lead, as they should, to an expansion of the licensed scopes of practice of many health professionals, the functions performed by nurses and others may well increase significantly. Population ageing will likely increase the demand for therapists, especially if there is a concerted effort to keep Canada’s older population healthier, preventing or delaying the onset of frailty and dementia.
Despite Family Health Teams having been in existence in Ontario and elsewhere for more than 15 years, most of the data remain concentrated on family physicians. Although some information is coming available on nurse-practitioners, both working independently and teamed with physicians and others;
The causes of the supply-demand imbalances reviewed in this report all require study and documentation. It is remarkable, given its importance and concern to the many organizations involved,
Correcting the current supply-demand imbalances can only begin by understanding why they developed and persist. Are pay differentials between family practice, geriatrics, and other less popular specialties the prime reason why increasing shortages are forecast? Why is the retention of personal support workers in their field so short? Is it a fundamental absence of respect for the value of their work? Although COVID-19 has created severe stresses on nurses, PSWs, and other institutional employees, especially given the dominance of women in those occupations with concomitant child-care responsibilities, what explains the shortages evident before COVID-19? Could changes in the recruitment of students, educational curricula and training programs provide solutions? Would stronger promotion of the formation of ACO/ICSs be a catalyst to achieve both greater productivity and mutual respect among health and healthcare team members? How might that be implemented? What are the roadblocks to expanding the scopes of practice of a wide variety of health workers? There are many such questions to answer, and quickly, to meet the needs of Canadians.
Expanded Scopes of Practice: The Answer to Worker Shortages?
There is no single answer, but there is no question that Nurse Practitioners (NP) and in the United States, Physician Assistants (PA),
NPs are currently demonstrating how quickly and effectively they can help to fill the country-wide gap in primary care availability. Nova Scotia Health has partnered in a pilot project with pharmacies in two communities to improve access to primary care, adding an on-site nurse practitioner able to assess and treat a variety of health conditions.
The overlap of services provided by nurse practitioners and family doctors can create tension between the professions. As a result, NPs are not yet being used to their full potential
Role substitution among many health-sector workers may also be the answer to providing care and support, both general and specialized, to the elderly, a current and worsening problem given the shortage of physicians specializing in geriatric medicine. Were the licensed scopes of practice of the whole cascade of health-service workers to be re-evaluated and changed in accordance with modern and yet-to-be-developed educational and clinical training standards, much more could be accomplished. It has the added potential to reinforce teamwork and enhance the respect and job satisfaction of all health workers and thus retention in their current occupations while increasing the effectiveness of Canada’s health system in meeting the population’s needs.
Tapping into the benefits of expanded scopes of practice will be compromised by the shortages in many of the health professions, although even in this environment there would be net gains to the degree, for example, that labour supply can be more quickly enhanced for occupations by shorter education and training periods.
Recommendations for Health Human Resource Planning
Relevant points for recommendations flowing from the analysis of supply-demand imbalances include:
- There was an excess of demand over supply in the health workforce long before COVID-19 struck;
- The supply of health workers in nearly all categories continued to grow, some strongly, throughout the pandemic;
- Nevertheless, the stresses associated with COVID-19 have taken parts of the health sector beyond their limited capacity, accentuating the tightness and uneven distribution of the health workforce and impairing areas such as primary, mental health, and long-term care;
- Worsening conditions for many workers has worn down the resilience of nurses and personal support workers particularly, who have opted recently to take less stressful and/ or better compensated employment available elsewhere in healthcare or outside it;
- The very real problems reported in the media, closed hospital ERs and understaffed long-term care facilities, are not due solely to a shortage of health workers but primarily to conditions that motivate their leaving for greener pastures – a failure of retention and longstanding impediments to the provision of care by the most appropriate caregiver at the best site.
- Many of the past and present health-sector human resource problems will likely worsen without appropriate planning, primarily but not exclusively due to population ageing and insufficient growth in the supply of workers most related to the needs of the older population. Specific problem areas cited include, but are far from restricted to, the probability of greater difficulty recruiting primary care givers, a likely greater gap in demand and supply for nurses when recent returnees re-retire, and the large and likely growing shortage of PSWs.
We divide our recommendations into first, overriding considerations for governance and second, more specific actions required.
The Way Out of the Health Sector’s Troubles
Overriding Governance Considerations
What we refer to complacently as Canada’s healthcare system has many problems. Although most are well known and of long-standing, their recent claim for greater public attention is a consequence of the SARS-Covid-19 pandemic. Most notable have been high death rates among elderly people in nursing and retirement homes and more recently the failure of many hospital emergency rooms and intensive and general care facilities to meet the increased needs of seriously ill people of all ages. Relative to comparable countries, Canada’s cost for healthcare is among the highest despite having fewer workers per capita in most occupations; however, the results achieved are mediocre at best, the worst of them being measured in terms of people’s very long wait-times for access to care. If there is a silver lining, it may be that this current pandemic will prove to have been the trigger for action, for finally making fundamental changes happen; well-studied changes the necessity of which has been known for years but have repeatedly been put off by governments and the many other institutional and professional ‘players’ involved.
The most basic of those problems is that the so-called healthcare system is not that – a real system in which its several components work together seamlessly to optimize the good health of every member of Canada’s population. Collectively those ‘parts’ lack leadership, governance in common, one that is expert and a-political but so structured as to respect Canada’s Constitutional division of responsibility for health’s optimization between the provinces, territories and the national government. Creating such a better governance model is not beyond our wit. We just need to get on with it.
Second in priority is the subject of this report, effective planning to address security of the supply of workers in all their diversity, needed now and in the foreseeable future to optimize Canadians’ health and wellbeing, providing both for their support as well as their care. While currently focused on shortages of available workers to provide desperately needed home and institutional support for ALC patients who are taking hospital beds desperately needed by other patients, many of them acutely ill with Covid-19, this problem is of long-standing. It affects every province and territory and also requires nation-wide leadership to study the issues, consult meaningfully with the many public and professional ‘players’ involved, and develop an agreed-upon, continuing path forward. The goal: to ensure that the supply of health human resources into the future is in balance with the demand for services, including those attributable to future pandemics like that stressing the “system” now.
Equally vital is getting to work on the long-neglected need to address the welter of separate, unstandardized health information systems that plague the collection of the reliable, complete, and timely data essential to measure, analyze, and develop workable solutions to any problem, including that of health human resource planning. Above, we have emphasized repeatedly the need for readers to exercise the same caution we have applied in relying on the shaky veracity of the current data on which we have had to base our conclusions.
Even more threatening to the health of Canadians generally is the bald fact that multiple, unstandardized health information systems that do not “talk” to one another precludes sharing the basic clinical information among the many providers of care and support services that they all need to work together well. Incredibly, it is also not therefore available to the patients who, in law, own it. It strains both common sense and the imagination how the continuing national, provincial/territorial governments and health-provider organizational and professional players themselves have failed to tackle and rectify this fundamental problem long ago. It is hard to conceive how any system, or any component thereof, could hope to achieve anything resembling efficiencies or optimum productivity without a reliable information system in common.
Finally, there is the imperative to bolster the confidence of the Canadian public in its leaders, the governments and professionals in health and healthcare. Their public acknowledgement that the status quo must change, and quickly, both to preserve our cherished health “system” and make it more effective, coupled with their collective commitment to make change would do a lot toward re-building that confidence.
To any of these four governance issues there are no quick, simple, or uncontroversial strategic policy solutions that both providers and the public consumers of health services would accept more readily had the country the money with which to ‘buy’ change. Given the country’s need to deal with climate change, population ageing, anaemic inventiveness, productivity, and the like, together with Canada’s already high rates of taxation, expanding our existing debt to make changes in healthcare easier will not cut it. Certainly, it would not be acceptable without first demonstrating conclusively that maximum productivity has been wrung out of how we are doing things now.
Actions Required Within a Better Governance Structure
So, what else is to be done beyond the four over-arching priorities described above? There is no shortage of things to do. Following in priority order are some recommendations primarily related to getting on with health human resource planning.
- Get better, more timely and complete data and analysis to support collective planning and development. The requisite expertise and data systems exist in different provinces throughout the country. But they need to be partnered with those of Statistics Canada, the Canadian Institute for Health Information (CIHI), and Canada Health Infoway to create a strong, credible base to achieve this and related objectives in relatively short order.
- Accelerate the rate of development and expansion of Integrated Care Systems/Accountable Care Organizations (ICS/ACO)
Also referred to as Accountable Care Organizations (ACO) or Ontario Health Teams (OHT) in Ontario. and particularly of their Primary Care Teams/Homes with the goal to ensure that every Canadian is registered/rostered. Individuals would have ready access 24/7 to a family physician, nurse practitioner, or other provider of comprehensive primary care services including mental health and community-based home support and care services. The primary care provider members of such teams should be the “gate-keepers” to all other components of Canada’s health system. - Address the educational, training, and accreditation/certification issues that affect the application, entry and the success of students and trainees in currently less popular generalist occupational programs like family medicine or personal support workers, the graduates of which typically provide a broad range of services to people seeking help with diverse health problems and/or needs for a wide variety of care and support services. The objective is to enhance the status, professional standing, and rates of compensation of such providers of general services
And some specialty services like geriatrics, rheumatology, and others particularly relevant to care of the burgeoning population of Canada’s elderly. and improve working conditions, leading to increased supply and better retention in their occupations. - Working, as in 3 above, with educational and training organizations and with accreditation, licensing, and certifying bodies, review the curricula and experiential content of programs leading to the qualification of all health professionals/workers with a view to developing accelerated programs leading to special competency in particular areas of knowledge or skill. This should include the continuation, if not acceleration, of recent momentum to address the challenges associated with the licensing and employment of internationally educated health workers. Consideration also must be directed to the aggregate supply over the long term of workers such as nurses and PSWs whose retention in hospitals and long-term care is currently particularly short.
- Re-evaluate the scopes of practice of all regulated and other health professionals/providers with a view to minimizing duplication of skills, optimizing productivity and efficiency, and fostering teamwork, substitution, and interdependency among them. The goals should be to increase the number of people rostered with family health “homes” and expand the range of services provided, reduce the stress and enhance the job satisfaction of every component of all ICS/ACOs, but particularly primary health team members and of those they serve. Another is to reduce the primary care load currently on hospital emergency rooms.
- With the involvement of provincial, territorial and municipal governments, engaged charities and other organizations, integrate the management and funding of existing home and community care and support services into the mandate of Primary Care Teams or “Homes.” The objective is to provide “one-stop shopping” for people in need of assistance of all kinds to maintain their good health or regain it and to enable elderly people to remain longer, happy and safe in their own homes and communities.
Conclusion
For more than 60 years now we have proudly considered our healthcare “system” as one of our country’s anchors, the things that define us as Canadians. But that vaunted system has for too long been taken for granted. The adaptations all systems must make to changing times, identified and well-studied in healthcare, have been too long put off and now we are in trouble. The additional stresses of a world-wide pandemic, of which SARS gave warning, have now come home to roost with Covid-19, piled on top of already long wait-times, “corridor medicine” in hospitals, and deficiencies in home, community, and long-term care generally. The result is an impending if not yet an actual crisis. As we said at the outset of this report, it would not take much to trigger one, even a collapse.
Preventing that will not be easy, but it can be done. We set out above steps we believe should be taken now particularly to address the labour shortages that are forcing the closure of hospital emergency rooms, that have caused the loneliness, sickness and deaths of our seniors in long-term care, and the difficulties too many Canadians have in joining a family health home. We have pointed to other major studies that have identified do-able ways of turning things around, creating a better, more resilient, sustainable, and affordable health system – a real one!
Step one is for our leaders, both in government and within the health sector, to get together, stop dithering, screw up their courage, and take action now to make change happen before the people’s confidence in them and in the promise of change is lost. We Canadians need and deserve no less.
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Appendix A:
Appendix B: Ontario’s Evidence on Imbalances in the Healthcare Sector
Canada’s fragmented health human resource data tell more stories. An Ontario Hospital Association survey of March 2022 shows 9 percent of positions at hospitals were unfilled, and about 13 percent for registered nurses alone.
The Ontario Hospital Association (OHA) has data on job vacancies from 2017 to 2022.
Vacancy rates rose somewhat from March 31, 2019, to March 31, 2020, then jumped up sharply by October 20, 2021 and remained high through March 1, 2022 (Table B1). Recent vacancy rates are especially high for nurses and personal support workers.
The OHA survey also provides information on turnover rates. Here we review the total turnover rate (resignations, retirements and involuntary separations).
The turnover rates, already high in 2018-19, rose somewhat in 2019-20 then jumped up appreciably in 2020-21 and again in 2021-22 (Table B2). Most of the increases came through resignations rather than retirements or involuntary separations. Note the OHA data capture turnover from hospitals and do not indicate whether or not the workers left the health sector.
Higher turnover rates post-pandemic certainly explain part of the rise in job vacancy rates. An increase in sick leave also plays a role (short-term disability went up 7.5 percent between 2017 and 2020 and long-term disability up 21.5 percent according to the OHA’s Health Human Resources Workforce Survey, 2022).
A separate OHA survey on COVID-19 revealed the unexpected response that the total headcount of hospitals rose 9.7 percent from March 2020 to March 2021.
Why did hospitals increase their headcount so much from 2020 to 2021? What sorts of jobs account for the large increase in the hospital workforce? Do conventional measures of demand for hospital services (such as hospitalizations) fail to capture the full extent of increased needs in hospitals such as providing immunizations on and offsite, monitoring those entering the facilities, supporting long-term care facilities for infectious disease protection, and additional cleaning requirements. The result suggests a different perspective on the rising job vacancy rates for hospitals might need to be considered. One is that hospitals are struggling to keep existing positions filled. The increase in headcount suggests the possibility that hospitals in Ontario have been trying to increase their workforce substantially and have been only partially successful. This cuts to an issue with job vacancy rates. An increase does not, without further analysis, indicate whether supply has been decreasing, demand increasing, or a combination of both.