N.B. auditor general finds $173 million in travel nurse contracts ‘did not demonstrate value for money’

New Brunswick’s auditor general says the province’s travel nurse contracts signed over a two-year period were riddled with problems and risks.

Paul Martin released his report into the matter Tuesday, after promising to look into the contracts back in March.

Martin’s audit found that there was a lack of “data-drive decision-making, no vendor-selection processes, and no proper contract development, management or oversight.”

He also said that Vitalité Health Network did not provide his office with requested information, which is in contravention of the Auditor General Act.

Between the two health authorities – Vitalité and Horizon – and the Department of Social Development, the province spent $173 million in travel nurse contracts between Jan. 1, 2022 and Feb. 29, 2024.

Vitalité’s CEO has said some hospital beds were on the verge of closing because of lack of staff and that these contracts stopped that from happening.

In February, Dr. France Desrosiers said the health authority was “at a crossroads” by the summer of 2022, with level of care hours per patient at a critical point.

“This temporary but necessary measure allowed us to save lives, relieve our staff by reducing team exhaustion and turnover,” she said.

At the time, Desrosiers confirmed it will be winter 2026 before Vitalité will be able to completely phase out the need for these contract nurses. The health authority spent $123 million, while Horizon spent just under $48 million. The Department of Social Development spent $2.9 million.

Horizon Health has said it is preparing to phase out its need for travel nurses by the summer.

“Our audit work concluded that the contracts with private nursing agencies were not reflective of best practises and did not demonstrate value for money,” reads the audit.

The audit outlines how much pricing varied between companies. It found that Canadian Health Labs charged “significantly more” than the others.

In two contracts, that company charged Vitalité Health $18,043.42 a day (12 hours) for a team of five in-person staff members, including three registered nurses and two licensed practical nurses, as well as two virtual staff members. Broken down, that’s about $306/hour for each in-person staff member, according to the audit.

New Brunswick registered nurses are paid between $36.41 and $46.13/hour.

Vitalité spent $93 million on contracts with Canadian Health Labs.

The audit also found risks within the contracts.

Several contracts did not have an end dates, or spending caps. The report also noted that the Department of Social Development “did not request or receive copies of criminal or vulnerable sector checks pertaining to either contract.”

Some contracts with Vitalité found that 15 per cent of travel expenses were paid with no or little supportive documentation. For example, an accommodation charge of $2,700 for a month’s rent, while only a timesheet for three days’ worth of work was provided as supportive documentation.

Thirty-four recommendations have been made to the department, Horizon and Vitalité. One advises Vitalité to perform a post implementation review on these contracts, and “establish alternative options” when dealing with short and long-term staffing shortages.

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