Province paid more than $2.5M for travel nurses to work long-term care homes
Minister says emergency situation justified paying higher wages to private agency
Travel nurses brought in to work in long-term care in 2022 earned two-to-three times more than their New Brunswick-based colleagues, the province says.
Minister of Social Development Jill Green told a legislative committee Thursday that long-term care homes were in an emergency situation at the time the department signed contracts totalling just over $2.5 million with two private companies.
Toronto-based Canadian Health Labs received almost all of that money to provide 55 staff, from February to May 2022, Green said. The company charged a rate of $9,995 for a team of 10 people on an eight-hour shift.
That works out to an average of about $125 per hour, per person, although the hourly rates of pay "are not known by Social Development," according to spokesperson Kate Wright.
In an emailed statement, Wright did say that Canadian Health Labs provided a combination of registered nurses, licensed practical nurses and personal support workers.
In addition to that contract, Green said Social Development struck a $176,000 agreement with Plan A, an agency from Sudbury, Ont., for 34 staff, from February to July 2022.
Hourly wages varied under that contract with Plan A, depending on the position, Green said, with $89.50 paid to registered nurses, $59.50 to licensed practical nurses and $39.50 to personal support workers.
Those rates are notably higher than what New Brunswickers, working alongside the contract nurses, would have received at the time.
As per the province's collective agreements, hourly wages ranged from $37 to $45 for registered nurses, $29 to $32 for licensed practical nurses, and $21 to $23 for personal support workers.
The Social Development contracts are smaller than those struck by the province's regional health authorities for travel nurses, but are among those under investigation by Auditor General Paul Martin.
A Globe and Mail investigation found Vitalité Health Network, which oversees New Brunswick's francophone hospitals, has awarded several large contracts to Canadian Health Labs.
Most recently, a $93-million agreement took effect on Dec. 2, 2022, and will run until February 2026, effectively charging Vitalité $306.70 an hour, per nurse.
Green told committee members the Social Development contracts were not awarded through the typical tender process.
Instead, she said, the department used an emergency exemption available under provincial procurement laws.
"There was no intent to hide anything or not speak about it publicly," she said. "As you can appreciate, with 410 [COVID-19] outbreaks that were happening at the time, it was an emergency situation."
The minister noted there were about 4,000 long-term care staff who tested positive for COVID-19 at the time.
Green was not available for an interview about the contracts with CBC News on Thursday.
Liberal
social development critic Robert Gauvin questioned why the province
would pay extra for out-of-province nurses rather than spend on
incentives for New Brunswick workers. (Government of New Brunswick)
Social Development does not have any current contract with private agencies, Green said in the legislative committee meeting, but added that some individual nursing homes may still be using that option.
That's because the province is not always the direct employer of long-term care staff, she said.
"We have not been entertaining any thoughts around hiring agencies like this going forward," Green said.
"We talked to a few companies, three to four, to assess who had capacity at that time. And then we went with the ones that had capacity because we were in an emergency situation."
Opposition MLAs were not convinced by the minister's rationale for the costly contracts.
"There could have been a solution worked with the union, worked with our public service nurses," Green Party MLA Kevin Arseneau said.
"If we needed to go get out-of-province nurses, there would have been other ways to do that than to give this to private companies at incredible prices, all while undercutting our own public service. It's unacceptable as a strategy."
Liberal social development critic Robert Gauvin said the province should have spent on bonuses or other incentives for in-province workers instead.
"We have no problems spending three times as much for external workers, and yet we don't give incentive to keep the workers that are here now," he said in an interview.
New Brunswick Nurses Union president Paula Doucet has called for an end to travel nursing contracts. (CBC)
The New Brunswick Nurses Union and the New Brunswick Council of Nursing Home Unions were not available for comment Thursday.
However, Paula Doucet, president of the Nurses Union, has previously called for an end to travel nursing contracts.
"Invest in New Brunswick, invest in New Brunswickers, and invest in New Brunswick nurses. And then maybe we would have a better health-care system for all," she said.
ABOUT THE AUTHOR
With files from Bobbi-Jean MacKinnon
Deja Vu Anyone???
Thursday 22 February 2024
N.B. defends costly use of travel nurses as 'necessary at the time
Nursing needs 'still as great' as 2022, when use of travel nurses started, says Vitalité CEO
Dr. France Desrosiers issues 2nd statement this week amid criticism of $158M in contracts with private agency
The severe staffing shortage that prompted Vitalité Health Network to pay a private agency about $158 million to hire out-of-province nurses in 2022 is just as bad now as it was then, according to the CEO.
Dr. France Desrosiers made the comment in a written statement issued Friday — her second statement this week amid criticism of the high cost to taxpayers for these so-called travel nurses and the fact they're paid roughly six times what New Brunswick nurses earn.
"The gradual reduction in agency services has been planned and has begun, but it would be impossible to do without them completely right now, given the immediate needs that are still as great as they were in 2022," she said.
At the same time, Desrosiers said the number of new hires has exceeded the number of departures since June 2022, which will enable Vitalité to gradually phase out the use of agency services by winter 2026.
Desrosiers declined an interview Friday and a spokesperson did not immediately respond to a request to clarify.
Dr.
France Desrosiers, CEO of Vitalité Health Network, urged New
Brunswickers to turn their 'focus to the future,' in a written statement
Friday. 'Let’s learn from the past and, together, prepare for the
future of health care.' (Gilles Boudreau/Radio-Canada)
In 2022, the staffing situation was "critical" because of the departures and early retirements during the COVID-19 pandemic, according to Desrosiers — "to the point where we were facing imminent emergency department and even facility closures."
She reiterated Vitalité had no choice but to resort to travel nurses."We had our backs against the wall."
She also pointed some blame at the provincial government.
"Could the use of agency staff have been avoided? Possibly, with judicious planning by all partners over the past 10 to 15 years."
Vitalité had "the green light from the Department of Health" for agency staff, Desrosiers stressed Friday.
Department was unaware of 2 contracts worth $138M
On Wednesday, deputy health minister Eric Beaulieu told a legislative committee the government was aware of Vitalité's first contract with Toronto-based Canadian Health Labs. It was informed of the other two after the fact, late in the 2022-23 fiscal year.
The first contract ran from July 29, 2022, until Sept. 23, 2023, for a maximum of $20 million, and provided a mix of registered nurses and licensed practical nurses at the equivalent of $300.72 an hour, according to a recent Globe and Mail investigation.
The second contract, worth a maximum of $45 million, supplied personal support workers at $162.29 an hour, while the third, which went into effect on Dec. 2, 2022, and runs until February 2026, with a cap of $93 million, effectively charges Vitalité $306.70 an hour per nurse, according to the Globe.
Deputy
health minister Eric Beaulieu told a legislative committee this week
that the department has started getting reports twice a month from the
health authorities on travel nurses, including the costs. (Legislative Assembly of New Brunswick)
Vitalité "went outside the normal practice" by signing two of the three contracts without the department's involvement, given the "magnitude of them, the duration and the dollar figure," Beaulieu told the standing committee on public accounts.
"I want to reiterate the department was not involved in the negotiations of the contracts with CHL or with any of the travel companies."
In a statement to CBC News, Canadian Health Labs, or CHL, said it places essential frontline health-care professionals in rural, remote, and underserved communities "in partnership with provincial governments, and under the direction of local health authorities."
"The contracts CHL enters into with provincial governments outline its rates and services and are tailored to meet each jurisdiction's significant local needs, and reflect the extraordinary logistical challenges of getting and keeping health care professionals in rural, remote and underserved communities," an unidentified spokesperson said.
"While contract rates for human health resources vary by region and specialty, the terms of CHL's contracts with healthcare professionals are fair and transparent."
The Department of Health did not immediately respond to a request for comments.
'Saves lives'
Desrosiers acknowledged again in Friday's statement, as she did earlier this week, that the use of travel nurses is "not a perfect solution."
"In addition to the associated costs, many have denounced the salary inequity it creates among nursing staff in the public and private sectors at a time when our health-care workers most need support and recognition."
Still, she defended the expense, saying it "saves lives."
"In retrospect, we need only think of the hundreds of lives that have been saved thanks to the support of agency staff and our own staff in maintaining dialysis treatment, emergency departments and other essential services, for example, to confirm that this decision was the right one," she wrote.
"These patients, they have names … they are our family members, our neighbours, our loved ones."
"The health, safety and well-being of our patients and communities remain at the heart of all our decisions," she added.
N.B. defends costly use of travel nurses as 'necessary at the time'
Opposition suggests millions in taxpayer money would have been better spent on retention
The New Brunswick government is defending the use of travel nurses in the face of criticism over the high cost to taxpayers.
Meanwhile, Vitalité, the regional health authority that has made the most use of the private agency nurses, acknowledged in a statement to CBC News that "the billing level for these services deserves questioning."
"These costs represent a significant financial burden for our citizens," CEO Dr. France Desrosiers said in an email. "They also create inequality between network health-care workers and agency staff.
"However, the decision was unavoidable in the short term," she said, citing staffing shortages created by departures and early retirements from 2020 to 2022 during the COVID-19 pandemic.
Deputy health minister Eric Beaulieu was grilled about the controversial practice when he appeared before the legislature's public accounts committee on Wednesday.
'Gouging taxpayers'
Liberal health critic Rob McKee questioned the "heavy reliance on expensive out-of-town nurses facilitated by private agencies."
These agencies included Toronto-based Canadian Health Labs, which charges "exorbitant rates" of more than $300 an hour — roughly six times what a local staff nurse earns, McKee said, citing a recent investigation by the Globe and Mail.
"This is nothing more than gouging taxpayers," McKee said. "It's a result of the Higgs government's mismanagement of the health-care crisis."
New Brunswick's two regional health authorities, Horizon and Vitalité, spent a combined $56.8 million in the first five months of 2023-24 on the costs associated with travel nurses, according to figures obtained by CBC News and separately by the New Brunswick Nurses Union through a right to information request late last year.
But the Globe found the actual cost is much higher. The national newspaper obtained copies of three contracts between Vitalité and Canadian Health Labs. The first, which ran from July 29, 2022, until Sept. 23, 2023, for a maximum of $20 million, provided a mix of registered nurses and licensed practical nurses at the equivalent of $300.72 an hour.
A second contract, worth a maximum of $45 million, supplied personal support workers at $162.29 an hour, while the third, which went into effect on Dec. 2, 2022, and runs until February 2026, with a cap of $93 million, effectively charges Vitalité $306.70 an hour per nurse.
Vitalité faced closures
The contracts between Vitalité and Canadian Health Labs were "done at a time when Vitalité was facing either closure of services or closure — in their words — closure of facilities related to staffing shortages," Beaulieu told McKee.
The department has been working with both Vitalité and Horizon in reducing the use of travel nurses across the province, he said.
"It is not an aspect that either the department, the minister, or the RHAs wish to continue long term, but I will say it was a necessary at the time they were signed."
Deputy
health minister Eric Beaulieu said the department started getting
biweekly reports from the health authorities on travel nurses, including
the costs, last fall. (Legislative Assembly of New Brunswick)
Beaulieu expects Horizon to eliminate the use of travel nurses this spring. "There may be a short delay in some very specific areas, but the overall volume would be quite minimal."
Vitalité will take longer because of the challenges with francophone recruitment and the Canadian Health Labs contract, which runs until 2026.
Unions seek audit
The New Brunswick Nurses Union and the Canadian Federation of Nurses Unions intend to send a joint letter to Auditor General Paul Martin, calling on him to investigate.
The Auditor General's Office says the use of private nursing agencies "has been added to the list of potential future audits."
Premier Blaine Higgs told reporters the use of travel nurses "is not the future for nursing" in New Brunswick.
"We know that. … It's not a situation we want to keep at all."
Premier
Blaine Higgs said Horizon could stop using travel nurses as soon as the
end of March, but Vitalité has a longer-term contract. (Radio-Canada)
It was a short-term solution to nursing shortages, he said.
"Because we had a situation there where nurses were working extended hours, six, seven days a week, and you can't keep that up — not taking vacation, not being out with their family."
'Very limited number' of francophone options
According to the head of Vitalité, the level of care hours per patient had been reduced to a "critical threshold" by the summer of 2022, and more than 100 beds had to be closed.
"We were at a crossroads," said Desrosiers.
The decision to resort to agency staff was made only after a thorough examination of the risks to the health and safety of patients, she said.
"Several plans to reduce services with dramatic consequences were considered before this choice was made," Desrosiers said, without elaborating.
The use of travel nurses ensured the continuity of essential services by maintaining a minimum safe threshold of care hours for patients.
"This temporary but necessary measure allowed us to save lives, relieve our staff by reducing team exhaustion and turnover."
Dr.
France Desrosiers, CEO of Vitalité Health Network, said the gradual
reduction of agency services has already begun, but it would be
'irresponsible to do away with them completely at this time.' (Gilles Boudreau/Radio-Canada)
Only a "very limited number" of agencies were able to provide the necessary francophone or bilingual resources in a timely manner to maintain services, Desrosiers said.
Being a minority French-language health-care network has "worked against" Vitalité, with a limited recruitment pool and a higher number of vacant positions, resulting in a lower average number of care hours, she said.
In 2019, the median age of the population exclusively served by Vitalité was 52, compared to 44 for Horizon. The proportion of the population aged 65 or older for Vitalité was 26 per cent, compared to 20 per cent for Horizon, said Desrosiers, noting the rate of chronic illnesses among elderly people is higher, and the needs for health-care services is greater.
Recruitment and retention efforts are yielding results and Vitalité has already begun to gradually reduce the use of agency services, she said.
"But it would be irresponsible to do away with them completely at this time, considering immediate needs."
Department aware of only 1 of 3 Vitalité contracts
The government was aware of Vitalité's first contract with Canadian Health Labs, according to Beaulieu. It was informed of the other two after the fact, late in the 2022-23 fiscal year.
Beaulieu said he believes all three were awarded without requests for proposals first.
The regional health authorities are responsible for service delivery so the Health Department would not necessarily have direct oversight on contacts signed throughout a year.
With these types of contracts, however, "given the magnitude of them, the duration and the dollar figure, they would normally be things that would involve [the] department."
Liberal
health critic Rob McKee asked what strategies the government is
implementing to address the root causes of health care staffing
shortage. (Ed Hunter/CBC)
McKee asked if there are repercussions for acting outside the normal practice of involving the department.
"What we tried to focus on is that issues like this do not reproduce in the future," replied Beaulieu.
The department had the impression the $20 million that Vitalité spent on travel nurses in 2022-23 and the $5 million Horizon spent, was "going to be reducing quite significantly," he said. When that didn't happen, it instituted biweekly reports on travel nurses, including costs and hours.
Nurses feel disrespected, not valued
McKee suggested the money would have been better spent trying to retain nurses. He noted nurses called last year for a retention bonus, which neighbouring provinces were offering, but they were denied.
"How do you justify … saying no to our own people that are leaving, but then paying six times more to bring people [from] out of town?"
Beaulieu reiterated the government was not involved in the negotiation of the contracts.
"I believe what the RHAs would have done is they would have balanced out the need to protect services as the number one issue at that point in time."
Green Party health critic Megan Mitton asked whether the government calculated how much it would have cost to match the retention payments offered by other provinces, such as Nova Scotia.
Green
Party health critic Megan Mitton said she believes it's 'within the
realm of possibility for New Brunswick to provide retention bonuses.' (Ed Hunter/CBC)
"We know millions and millions of dollars have been spent through these private travel nursing agencies," she said.
"But we have nurses who work here, who want to work here, but have felt … disrespected or that they're not valued because they haven't haven't received" the same types of bonuses."
Beaulieu initially said it would have cost New Brunswick "over a billion dollars" to match Nova Scotia's $10,000 bonus, but later said he misspoke.
There are about 10,000 nurses in New Brunswick, including the ones who work in long-term care, so the cost would be about $100 million, he said.
'Making gains' through recruitment
The government continues to focus on recruitment, according to Beaulieu. Since April 2023, Horizon has recruited 278 permanent nurses, for a net increase of 125, he said.
At Vitalité, new hires have exceeded the departures since June 2022, said Desrosiers.
The government is also focused on nursing education, he said, noting enrolment in 2023 was the highest it's been in 20 years with more than 16,150 students in nursing programs.
That's up from about 900 four years ago, thanks to a number of steps, such as adding up to 85 new nursing seats at the University of New Brunswick, Maine's Beale University starting a program in Sackville with 100 seats, and offering licensed practical nurses the opportunity to become registered nurses through the launch of the Learn Where You Live program in Moncton and Miramichi.
Higgs also stressed the efforts with recruitment and education.
"We have hired, I think it's about 800 more nurses than have retired. … And that'll suspend any future requirement for the travel nurse."
With files from Radio-Canada
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