New Brunswick’s Auditor General Criticizes Province’s Reliance on Private Nursing Services

New Brunswick’s Auditor General Criticizes Province’s Spending on Private Nursing Services

In a scathing report released on Tuesday, New Brunswick’s auditor general, Paul Martin, highlighted the province’s excessive reliance on private nursing services as a misuse of public funds. The report revealed that the two provincial health authorities and a government department failed to properly monitor the payments made to private companies offering travel nurses.

The audit, which examined nearly $174 million worth of contracts with private nursing companies between January 2022 and February 2024, uncovered a lack of criteria for selecting these companies, inadequate legal reviews of contracts, and payments made without proper documentation to justify expenses.

Martin expressed shock and disappointment at the findings, stating, “This is not the appropriate way to do contract management, procure for government, deliver services. This has to be fixed.”

The francophone Vitalité Health Network was identified as the biggest spender on travel nurses, paying over $123 million, including $98 million to one Ontario-based agency, Canadian Health Labs. Despite conducting internal audits on its contracts with the agency, Vitalité refused to provide access to the audit reports to the auditor general’s office.

The report also highlighted deficiencies in the Department of Social Development’s spending on travel nurses, with $3 million allocated without requests for proposals and significant variations in pricing structures between the two contracted companies.

Premier Blaine Higgs expressed disappointment in the report’s findings, acknowledging the need for accountability and corrective action. Social Development Minister Jill Green stated that the government is working closely with relevant offices to review next steps and potentially terminate existing contracts.

In response to the report, Martin issued a series of recommendations, including the establishment of clear processes for awarding public contracts and ensuring compliance with contracted terms. He emphasized the importance of proper due diligence and adherence to policy in managing public funds.

The revelations in the auditor general’s report have sparked calls for greater oversight and accountability in the province’s procurement and contract management practices. As New Brunswick grapples with the implications of these findings, the need for transparency and responsible financial stewardship has never been more apparent.