Auditor general to launch probe of N.L. health sector contracts

Newfoundland and Labrador's auditor general will conduct a performance audit of health sector contracts including those of agency nursing operations to determine whether the province is spending its money most effectively.

Plans for the audit wereconfirmed to CBC News in an email Thursday.The email said it can take months to determine the scope of an audit, and an audit can take as long as a year and a half to complete.

Theaudit followscalls from the Registered Nurses' Union Newfoundland and Labrador and the province's official opposition for Auditor General Denise Hanrahan to investigate spending on travel nurses.

It also comes on the heels of a report from the Globe and Mail earlier this year that revealed the Newfoundland and Labrador government spent $35.6 million on nurses from private agencies from April to August last yearwith rates as high as $300 per hour. The money also covered travel expenses and meals, among other costs.

In the years before the pandemic, the province spent an average of just over $1 million annually, the report found.

In a statement issued Thursday, Registered Nurses' Union president Yvette Coffey applauded the decision to begin the audit process calling the amount of spending "astronomical."

"We appreciate and understand the independence of the auditor general. This is why we believe this would be the best avenue for investigating these contracts. We are extremely pleased to hear that the AG has decided to conduct a performance audit," Coffey said.

The Newfoundland and Labrador government has availed of agency nurses to fill gaps within the public health-care system and keep rural emergency rooms open.

Both Health Minister Tom Osborne and Premier Andrew Furey have called the use of agency nurses a necessary evil, with Osborne saying Feb. 27 that the money could be spent in better places.

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