Health P.E.I. spending thousands of dollars a month on private employment agencies, contracts reveal

Health P.E.I. has recently come under scrutiny for hiring six senior managers on an interim basis through private employment agencies, at costs ranging from $17,490 a month to $43,750 a month. The information was revealed in a series of contracts provided to CBC News.

These managers are filling some of the most senior roles at the health agency, including chief medical officer, chief operating officer, and chief financial officer. Melanie Fraser, Health P.E.I.’s CEO, defended the decision to hire these interim executives, stating that they were necessary to keep the health-care system running while a permanent leadership team was being developed. She emphasized that the cost of hiring these interim managers was comparable to what would have been paid to salaried professionals in these roles.

However, the numbers reveal a significant increase in costs associated with using private employment firms. For example, the contract for the interim chief medical officer is costing the health authority $43,750 a month, totaling about $525,000 a year. This figure includes salary, benefits, and the firm’s fee. In comparison, the yearly salary for the chief medical officer, if hired permanently through the health authority, would be about $394,000.

The decision to hire interim executives through private employment agencies was prompted by a series of departures of senior managers following a damning provincial auditor general’s report in October 2024. The audit uncovered that eight top executives had been given new salaries or raises without proper approval, leading to their contracts being terminated.

The use of private employment agencies has drawn criticism from opposition parties, with Green Party health critic Matt MacFarlane calling the details “shocking.” Both the Green Party and Liberal Party have expressed concerns about the increased costs associated with these contracts and have called for further investigation by the auditor general.

Health P.E.I. hired three private firms, including Odgers Berndtson, KBRS, and Royer Thompson Management Consulting, to supply them with interim executives. These contracts range in cost from $17,490 to $43,750 a month, with additional expenses for accommodation and travel.

While Health P.E.I. continues to use private employment firms for recruitment, they are also in the process of developing a new senior leadership team. The agency is currently recruiting for permanent positions, such as head of pediatrics, head of medicine, and medical director of mental health and addictions.

In addition to the scrutiny over the use of private employment agencies, Health P.E.I. is also under investigation for “additional payroll irregularities” by the province’s auditor general. The findings of this investigation are expected to be reported in the fall.

Overall, the decision to hire interim executives through private employment agencies has raised questions about the cost-effectiveness of this approach and the impact on the health-care system in Prince Edward Island. As the agency works to address these concerns and develop a new leadership team, transparency and accountability will be key in rebuilding public trust in the health system.