The NSW healthcare system could save over $170 million by increasing nurses' and midwives' wages by 15 percent, the NSW Nurses and Midwives Association (NSWNMA) said.

The findings are based on a report prepared together with professional services network Deloitte and show that due to inaccurate hospital reporting there are billions of dollars of untapped funds left in the Commonwealth revenue.

The average yearly net income for nurses and midwives is currently at $77,706, according to the NSWNMA report. A 15 percent pay rise would mean the salary for nurses and midwives would increase to $87,594. 

 The NSWNMA said that by increasing the salary of nurses and midwives the retention rate will be higher lowering the overall staff costs over time. 

"This report shows the one-year 15 percent pay rise we are seeking is reasonable, justifiable, and affordable. As highlighted in the Escaping NSW Treasury's Curse, nurses and midwives are living on 2008 wages, while to survive in a 2024 economic climate," NSWNMA Assistant General Secretary Michael Whaites said. 

In the Western NSW Local Health District (WNSWLHD) nursing and midwifery agency hours were at 50,662 during the 2022-2023 financial year, a slight decrease from the 51,285 hours completed by agency staff in the previous financial year. 

Meanwhile, nurses and midwives worked 149,283 overtime hours in the 2022-2023 financial year, a 7.4 percent increase from the year prior. 

"This report demonstrates how the NSW Treasurer can afford both higher wages and more nursing and midwifery positions, by removing systemic inefficiencies in the health care system," NSWNMA General Secretary Shaye Candish said. 

NSWNMA claims that by increasing the wages for nurses and midwives, the turnover rate for staff will be reduced. Currently, staff turnover for nurses and midwives is at 11 percent. 

NSWNMA estimated the turnover rate could be reduced by 3 percent with a 15 percent wage increase saving the government nearly $86 million. 

NSWNMA also says that thanks to a higher retention rate for nurses and midwives, agency costs will also be reduced. 

"The need to fill vacancies has seen an increase in overtime penalties and utilisation of agency staff," the report stated. 

"Attracting more staff into the NSW public health system will lead to better outcomes for patients. We need to see nurse-to-patient ratios introduced across all wards and units in all hospitals to ensure patients have equal access to quality care regardless of their postcode," Ms Candish said. 

The reduction of agency and overtime costs through a 15 percent pay rise could save an additional $ 54 million. 

Another $30.3 million could be saved by reducing hospital-acquired complications by a third through having a larger number of available staff. 

Negotiations between the government and the NSWNMA are still underway, according to a spokesperson for Minister for Health Ryan Park. 

"The negotiations are still in their early stages." 

"We will work closely and constructively with workers and their unions."

"Last year we abolished the wages cap and delivered the largest pay rise for nurses and midwives in over a decade."

"We expect a better deal from the Federal Government when it comes to properly funding our healthcare system."