Vitalité tells Canadian Health Labs' travel nurses not to come to work

CBC

04-03-2025

Vitalité Health Network has cancelled the remaining shifts of travel nurses employed by Canadian Health Labs, even though its controversial contract with the Toronto-based staffing agency doesn't expire until next year.
Premier Susan Holt confirmed the move to CBC News Tuesday morning during a news conference about the province's action plan in response to 25 per cent tariffs imposed by U.S. President Donald Trump.
"Vitalité has been taking aggressive action to get us out of a bad contract," said Holt.
"We know that the CHL contract has been a source of frustration, cost and an issue for New Brunswickers and an issue for our nurses who watched folks come into our province, get paid significantly more than them and see some of them lose shifts and lose opportunities," she said.
"So we are glad to be getting out of that contract and focusing on New Brunswick nurses, who we need to retain and support for the long-term health of our health-care system."
Contract remains in effect
Vitalité declined an interview request, but in an emailed statement said it remains in discussions with Canadian Health Labs.
"Given the confidential nature of these discussions and the ongoing dispute, we will not comment on the specific details of the matter. However, we can confirm that our contract with CHL remains in effect to this day," the unsigned statement said in French.
The regional health authority did not immediately respond to questions, such as whether it's still paying the company, or how it's staffing its hospitals and nursing homes without the private agency nurses.
Canadian Health Labs did not immediately respond to a request for comment.
Auditor general slammed contracts
The agreement between Vitalité and the company was the subject of a scathing report by Auditor General Paul Martin in June.
While the health system was facing dire staffing shortages in 2022 when the authority signed its first contract with Canadian Health Labs, the deployment of travel nurses in Vitalité's hospitals "did not correlate with staff absences due to COVID-19," Martin said.
"The contracts with private nursing agencies were not reflective of best practices and did not demonstrate value for money," he said.
What is "quite scary," Martin told MLAs at the time, is that the current Canadian Health Labs contract with Vitalité allows the company to deploy nurses "regardless of the actual need" and still be paid up to $85 million during the life of the agreement.
Vitalité recorded a deficit of $52.1 million during the first six months of the current fiscal year, with travel nurses accounting for $44.2 million of that, board member Réjean Després said during January's board meeting.
Intends to accelerate 'weaning plan'
In its statement Tuesday, Vitalité reiterated its commitment to gradually reduce its reliance on staffing agencies.
It has already "significantly" reduced the use of travel nurses through a "weaning plan," which began in the fall of 2023, it said, and plans to accelerate the process this year, with the arrival of new hires, including professionals currently being certified in Canada and nursing graduates from post-secondary institutions in the province.
"Our goal of ending our use of agencies by February 2026 remains unchanged," Vitalité said, declining further comment.
Union president pleased
Paula Doucet, president of the New Brunswick Nurses Union, who has long called for an end of the use of costly private agency nurses, said she hadn't heard confirmation of the latest development.
But she did hear a few weeks ago about some nurses employed by Canadian Health Labs who were advised not to go to work at Chauleur Regional Hospital.
"They were just told not to show up for their shift and to return their work badges," she said.
"I believe it was Chad Doucet, [administrative director of clinical services and professional practice], that sent the e-mail to them and they were to contact him if they had any questions or concerns."
Doucet said it's "about time" New Brunswick gets rid of travel nurse contracts and invests in retaining existing nurses and recruiting more.
"It's a no-win every time we spend money on private for-profit entities that take taxpayer dollars out of our province."