"The Trust is also incurring additional agency costs
due to the well-publicised issues related to the NHS Pension Scheme, where senior clinical staff are incurring significant unplanned tax liabilities.
And NHS chief executive Jeff Ace highlighted the problem to Holyrood's health committee saying: "The biggest cost improvement that we can make is addressing our recruitment challenges because we're paying a considerable premium at the moment for locum medical staff and nurse agency costs
He said: "This is a significant overrun by any standard and shows the failure to control agency costs
has become endemic."
Recruiting permanent staff "helps reduce agency costs
and provides greater continuity of care for patients", she added.
"We'd also highlight our agency costs
are significantly higher, having doubled in the last year.
The report outlines that the plan would have significant benefits for future recruitment at the hospital, which has struggled and been faced with large agency costs
for short term workers.
Also, we would like to clarify that the scheduled contribution rate hikes under the new charter are meant to cover past additional benefit payouts to SSS members due to the 2017 P1,000 additional benefit paid to pensioners, and not 'agency costs
' as stated in the article.
"In contrast to medical agency, nurse agency costs
are at the highest level for the year to date due to increased costs seen in Wrexham."
Thus, shareholders use certain mechanisms that will lead to reduction in the agency costs
. One such mechanism is the use of leverage in the capital structure of a firm.
Figures show that in 2015/16, the 'Eliot forked out PS14,431,861 on agency costs
, followed by PS9,788,490 in 2016/17 and PS8,318,527 in 2017/18.
The governing contract unconditionally obligates contractors to pay agency costs
regardless of water deliveries and provides that a failure to pay by one or more customers would have to be covered by the others through the following year's rate-setting process.