Why the Dismal Science?

Tuesday, November 14, 2006

Chapter 3 (Going once..Going twice)


Others cry foul at Calgary's Efforts to Recruit Nurses

Calgary Health Region ad campaign to recruit nurses has created an outrage across Canada. Alberta has a shortage of nurses in the area and is in demand for 500 registered, licensed nurse practitioners. The ads target the market by offering permanent nursing positions in both urban and rural communities including excellent benefit packages and salaries. Other provinces like Saskatchewan with a less blooming economy cannot compete with the recruitment benefits and bonuses offered in Alberta. Hamilton Health Sciences in Ontario and Nova Scotia’s Nurses’ Union cannot afford to lose their pool of nurses. Canada is quickly entering a bidding war with the shortages of registered nurses.

For the past decade, provincial governments in Canada have been dealing with shortage of medical assistance from the health system. All Canadians have felt the decline but none more so than the nurses. Alberta is extending their recruitment to other provinces because they are currently short 2,000 nurses. Alberta provincial government has been instrumental players in recruiting nurses in the labour market. The information provided has extended details of job opportunities as well as created competition among the other provinces. This effective competition offered nurses the best benefits for working more overtime. Although this bidding war has created a positive third-party effect in Alberta, other provinces are facing negative third-party effect. The federal government has to undertake action to prevent further shortages of nurse in Canada by extending learning opportunities and benefits of nursing schools. It is vital for the government to attract nurses into the labour market in Canada since health care is an essential good. United States, our neighbouring country attract majority of the labour force in the medical industry especially from Canada because of their higher salaries and benefits. Privatization allows medical clinics to present the best offer to nurses under the tight demand. Health care is a public good that could be control by a company. However, if health care were privatized, would private companies have the best interest of the public under this shortage of nurses? Health care is not unmet good so private companies can take advantage of this situation and easily overcharge patients for the beneficiaries. The Alberta provincial government have become involved in the problem that arose in their health care system. By continuing their procedure in recruiting nurses, they will slowly diminish their shortage. The federal government must slowly regulate the procedure of the provincial government to prevent an extensive national shortage of nurses. Government officials must create a mandate to eliminate the current price ceiling on salaries offered to health care workers to reduce the current shortages. Price ceiling result in shortages that force the federal government to deal with rationing health care among the provinces.

In British Columbia, nurses are offered a $10,000 bonuses and Alberta has created a bidding war for British Columbians. I hope the shortage is temporary and the federal government will take proper initative to reduce the problem. Education is a key factor in eliminating this shortage because "education supply has not kept pace with the demand". The government must help rebuild the profession and not steal from one another. Because of these circumstances, governments must intervene in our free-market system.

Stop “Poaching” for Nurses!!

http://www.edmontonsun.com/News/Alberta/2007/01/22/3424613-sun.html

2 Comments:

  • If our country’s problem were just competition between the different provinces for nurses, maybe the problem would be less severe than what people are saying it is. I think that there is a general shortage across the country – that’s why the provinces are competing with each other right now. If there were a good supply of nurses in our country right now, then theoretically they should be well spread out between all the provinces, because once a province has recruited enough/too many nurses, they will let some of their benefits slide in order to get rid of the surplus, or vice versa. Privatization might be the key, as the system’s main goal is efficiency, which causes it to naturally make the most of its resources.

    G. Lau

    By Blogger Grace, at 9:01 AM  

  • "The federal government has to undertake action to prevent further shortages of nurse in Canada by extending learning opportunities and benefits of nursing schools."

    Well, maybe to some extent it would attract more nurses but in the long run I think if they're initial intention was to make lots of money then they'll still head to the states no matter how much 'learning opportunities and benefits' Canada has.

    I think it's not fair that Alberta is offering all these great benefits and salaries when it's taking away from the country has a whole. As it was stated other provinces can't compete with that. Competition is a good thing is certain cases but in this case I think it does more harm than good. If one province offers something I think it should be also offered at other provinces, but that type of equality is hard to reach.

    C. Lam

    By Blogger carrie, at 12:46 AM  

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