Tasmanian Government Spending on Locum Nurses Rises

Escalating Costs and Growing Reliance

Tasmania's state government expenditure on locum nurses has escalated to over $100 million annually, now comprising nearly five percent of the total health budget. In the 2024-25 financial year, the government spent $105 million on locum nurses. This marks a significant increase from $14.5 million, which represented one percent of the health budget, in 2020.

In the 2024-25 financial year, the government spent $105 million on locum nurses, a significant increase from $14.5 million (one percent of the health budget) in 2020.

Opposition and Union Concerns

The Tasmanian Labor Party, through health spokesperson Sarah Lovell, stated that the increasing reliance on locum nurses, who can cost up to three times more than permanent staff, indicates a failure in recruitment and retention within the health system. Lovell suggested these funds could otherwise be invested in permanent staff or enhanced services.

Labor's health spokesperson, Sarah Lovell, suggested these funds could otherwise be invested in permanent staff or enhanced services.

The Australian Nursing and Midwifery Federation (ANMF), represented by Emily Shepherd, attributed the situation to a substantial deficit in nurses and midwives. Shepherd criticized slow recruitment processes for permanent positions, which she said leads qualified candidates to seek employment elsewhere due to prolonged waiting times. She also highlighted that relying on short-term agency contracts increases workload on existing staff for orientation and creates an administrative burden for nursing unit managers.

Emily Shepherd of the ANMF noted that relying on short-term agency contracts increases workload on existing staff for orientation and creates an administrative burden.

Government's Stance

Health Minister Bridget Archer acknowledged the need to increase the permanent workforce but defended the use of locum or agency nurses when necessary to ensure the delivery of essential healthcare services to Tasmanians. Archer noted that the government has recruited thousands of healthcare professionals over the past 12 years.

Health Minister Bridget Archer defended the use of locum or agency nurses when necessary to ensure the delivery of essential healthcare services.

Broader Financial Implications

This data coincides with a recent report from Tasmania's Department of Treasury and Finance, which warned of a potential rapid deterioration of the state's finances. The report projected net debt could reach $146 billion by 2040.

A recent report from Tasmania's Department of Treasury and Finance warned of a potential rapid deterioration of the state's finances, projecting net debt could reach $146 billion by 2040.

Hospital Infrastructure Expansion

Concurrently, the government announced the assignment of a contractor, Hansen Yuncken, for the $130 million expansion of the Royal Hobart Hospital's Emergency Department. This project is expected to increase treatment points from 80 to approximately 120 and double capacity for CT and X-ray services, while also introducing ultrasound and dedicated zones for various patient groups.

The $130 million expansion of the Royal Hobart Hospital's Emergency Department is expected to increase treatment points from 80 to approximately 120 and double capacity for CT and X-ray services.