Vitalité tells Canadian Health Labs' travel nurses not to come to work
Contract still in effect, no other details released
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 this matter. However, we can confirm that our contract with CHL remains in force to this day," the unsigned statement said.
The regional health authority did not immediately respond to questions, such as whether it's still paying the company, how it's staffing its hospitals and nursing homes without the CHL nurses, or whether it's still using other private agency nurses.
Canadian Health Labs also declined an interview, but in an emailed statement said the company remains "in full compliance" with its contractual obligations and is "actively seeking a solution."
"Since July 2022, CHL has helped ensure that New Brunswickers have access to quality healthcare by placing hundreds of essential frontline healthcare professionals in rural, remote, and underserviced communities affected by the ongoing healthcare crisis," an unidentified spokesperson for the company said.
"During that time, CHL nurses have worked tirelessly in Vitalité run hospitals, providing quality and much needed care to New Brunswick residents. They deserve admiration and respect. Instead, CHL nurses notified CHL management that they were informed by Vitalité on January 30, 2025, that all scheduled shifts had been cancelled."
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.
In addition, when the contract expires in February 2026 it could be automatically renewed up to five times if the company meets bilingualism thresholds, Martin warned.
Vitalité's three contracts with Canadian Health Labs, which covered July 2022 until February 2026, totalled $98 million, according to Martin. The company charges about $300 an hour per nurse — roughly six times what a local staff nurse earns.
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, vice-chair Réjean Després said during January's board meeting. In the last fiscal year, the regional health authority was overbudget by about $100 million, again mainly because of expenses related to travel nurses.
The auditor general has filed a notice of action against Vitalité over its refusal to give his office the three internal audits the authority conducted into its contracts with the Canadian Health Labs.
Vitalité has not yet filed a response to the October legal action, but said at the time it withheld the internal audits because it was "in the midst of a dispute with one of the companies targeted" in the investigation and sharing them might have hurt negotiations.
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 reliance on 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."
Horizon Health Network eliminated its use of travel nurses at the end of August.
Province sees net increase of 393 nurses
The Department of Health declined to comment on the situation between Vitalité and Canadian Health Labs, noting travel nurses are contracted by the regional health authorities, not the department.
But in an emailed statement, spokesperson Sean Hatchard said the department is "working continuously" with stakeholders to fill nursing positions as quickly as possible.
Between April 1, 2024 and Jan. 31, 2025, Vitalité and Horizon hired a combined total of 719 permanent registered nurses and licensed practical nurses — a net increase of 393, said Hatchard. He did not indicate if they're all full-time.