New Brunswick is moving to end a travel nurse contract between the Vitalité Health Network and Canadian Health Labs (CHL).
The Holt government introduced legislation on Wednesday that, if passed, would cancel the controversial deal.
Health Minister John Dornan said the contract is “unfair to taxpayers” and has a “significant impact” on the overall health department budget.
“While the reliance on using travel nurse agencies has decreased, the exceptional nature of this specific contract means we are moving forward with legislation to terminate the agreement,” Dornan said in a statement.
Vitalité Health recently cancelled the remaining shifts of Canadian Health Labs’ travel nurses.
That is despite the fact that the contract with the staffing agency does not expire until 2026.
New Brunswick’s auditor general also released a damning report on the use of travel nurses last year.
Paul Martin found that Canadian Health Labs (CHL) charged significantly more than the others to provide registered nurses, licensed practical nurses and personal support workers.
In addition, one of those contracts allows for annual automatic renewals for up to five years if the company meets its obligations for fulfilment and language.
The Horizon Health Network had also entered contracts for travel nurses but was able to stop using them by late August.
Dornan said the government is taking steps to bolster the recruitment, training and retention of nurses in the health-care and long-term care systems.
The province’s two regional health authorities have hired 719 RNs and LPNs between April 1, 2024, and Jan. 31, 2025, for a net increase of 393.
“Since July 2022, CHL has helped ensure that New Brunswickers have access to quality healthcare by placing hundreds of essential frontline healthcare professionals in rural, remote, and underserviced communities affected by the ongoing healthcare crisis,” a spokesperson for CHL said in a statement to our newsroom.
