Province introduces legislation to cancel travel nurse contract that cost millions

Silas Brown · CBC News

· Posted: Mar 19, 2025 3:44 PM EDT | Last Updated: 7 minutes ago

The Holt authorities introduced caller authorities Wednesday that would cancel a question caregiver declaration with Canadian Health Labs. 

"Vitalité signed a declaration with CHL successful the midst of the pandemic. We were desperate," said Health Minister John Dornan. 

"The declaration that we signed was not a bully declaration for New Brunswickers, for taxpayers."

By utilizing authorities to cancel the declaration the state doesn't expect to look fiscal oregon ineligible penalties.

The declaration was signed by Vitalite successful 2022 arsenic the health-care strategy faced dire staffing shortages.

The statement was aboriginal slammed by Auditor General Paul Martin, who said it carried a important magnitude of hazard and contained an auto-renewal clause should Canadian Health Labs meet its French-language obligations. 

"The contracts with backstage nursing agencies were not reflective of champion practices and did not show worth for money," Martin said successful his report.

WATCH | 'We were desperate.' Travel caregiver contracts to beryllium axed:

Vitalité's 3 contracts with the company, which covered from July 2022 to February 2026, totalled $98 million, according to Martin. The institution charged about $300 an hr per caregiver — astir six times what a section unit caregiver earns.

Dornan said he's assured the state volition beryllium capable to fulfil its staffing needs. 

"We consciousness that we volition beryllium good served and person capable nurses for our strategy without this contract.".

Vitalité recently cancelled the shifts of Canadian Health Labs' nurses moving successful its facilities.

Department of Finance officials confirmed to CBC News connected Tuesday that the 2025-2026 fund contained no wealth for question nurses. However, Dornan told reporters Wednesday that determination are inactive a fistful of nurses from antithetic agencies moving successful the province, but said the request for question nurses decreases "on a regular basis."

At slightest $108 cardinal went to wage question nurses successful the fiscal twelvemonth that ends connected March 31.

Opposition Leader Glen Savoie said the Higgs government was looking astatine akin options anterior to past October's election. 

"We were looking astatine that and what it whitethorn outgo america successful presumption of going to the courts," Savoie said. 

He said if the government feels this is the close happening to do, "then we'll enactment that, but we privation to cognize the details connected however they mean to negociate done the concern specified arsenic a imaginable tribunal situation and guarantee radical are getting wellness care."

Green Leader David Coon said the determination needed to happen, considering the concerns with the contract. 

"This was overdue. I don't cognize who signed that declaration but it was ill-conceived and ill-determined and should ne'er person been signed," helium said. 

"This is the champion mode to determination guardant and relieve Vitalité of that burden."

Paula Doucet, president of the New Brunswick Nurses Union, applauded the authorities for taking action, but says the adjacent measurement volition beryllium to guarantee the request for bureau nurses is permanently reduced. 

"We saw Horizon did that past September. There were immoderate pains successful the beginning, but we managed to enactment done that and I deliberation Vitalité can truly larn from Horizon's mistakes," she said. 

"I'd truly similar to spot a three-month, six-month, 12-month program enactment successful spot to really signifier retired the usage of these private, for-profit companies."

Doucet hopes the national volition beryllium backmost astatine the bargaining array with the authorities soon and said that the deficiency of a declaration tin beryllium an impediment to attracting caller nursing graduates to enactment successful the province. 

According to a quality merchandise from the province, determination was a nett summation of 393 nurses implicit the past year, and determination are astir a 1000 much students enrolled successful nursing programs than successful 2018.

One of the government's signature predetermination promises was to marque $10,000 retention payments to nurses moving successful imperishable roles successful the province. Another $5,000 bonus volition spell retired this year.