Province cancels costly travel nurse contract worth $98 million

The Holt government has proposed new legislation to cancel a costly travel nurse contract with Canadian Health Labs. This contract, signed by the Vitalité Health Network in 2022, was intended to address severe staffing shortages in New Brunswick's healthcare system during the pandemic. Health Minister John Dornan criticized the contract, stating it was not beneficial for taxpayers. He assured that the province does not expect to incur financial or legal penalties from terminating the agreement, which totals $98 million for three contracts through 2026. The Auditor General had previously flagged this contract for its risks and high costs—approximately $300 an hour for travel nurses, which is significantly more than local staff nurses earn. Dornan expressed confidence that New Brunswick could meet its nursing needs without the contract. Vitalité has already advised travel nurses from Canadian Health Labs not to report for work. The Department of Finance confirmed that the upcoming budget does not allocate funds for travel nurses, although a few agency nurses still remain in the province. Opposition Leader Glen Savoie called for more details on how the government plans to manage potential legal challenges and ensure healthcare services remain uninterrupted. Green Leader David Coon supported the cancellation, calling it overdue and poorly conceived. Nurses Union president Paula Doucet welcomed the government's actions but stressed the need for a clear plan to reduce reliance on travel nurses. She highlighted that a successful approach taken by the Horizon Health Network could serve as a model. The province reported a net increase of 393 nurses in the past year, along with a surge in nursing program enrollments since 2018.