Auditor General Raises Concerns Over High Cost of Agency Nurses for Newfoundland and Labrador Health Authority

The province’s Auditor General has expressed serious concerns about the way agency nursing contracts are let and managed by the Newfoundland and Labrador Health Authority. Denise Hanrahan highlighted that the average agency nurse costs the province over $400,000 annually. The audit covered the period from January 2022 to March 2025, revealing that proper procedures were not followed by the health authority, leading to a lack of value for taxpayers’ money. The AG pointed out the absence of controls to verify contract terms, resulting in potential inappropriate payments. Inadequate planning for staff shortages and agency nurse usage was also criticized, with spending reaching near record levels.

Hanrahan recommended significant changes in securing such contracts, including engaging the supply chain department, following legislation and best practices, pursuing emergency procurement exemptions appropriately, conducting evaluations before awarding contracts, using standardized contract language, implementing a comprehensive invoice approval process, segregating invoice verification and approval duties, auditing payments made to agencies, developing nurse staffing plans, utilizing casual nurses as an alternative, ensuring compliance with conflict of interest legislation, screening for conflicts of interest, rectifying non-compliant accommodations, providing adequate information to management and the Board of Trustees, executing corrective action plans for overspending, and assessing provider performance before contract renewals.

According to the source: VOCM.