Vitalité Health Network has taken decisive action by cancelling the remaining shifts of travel nurses provided by Canadian Health Labs, a Toronto-based staffing agency. The decision follows a mounting dispute between the two entities over a contract worth $98 million. Signed in July 2022, this contract was intended to bolster Vitalité’s workforce with travel nurses until February 2026. However, the arrangement has been marked by controversy, particularly due to the high rates charged by Canadian Health Labs, approximately $300 per hour per nurse—about six times the salary of a local staff nurse.
The cancellation of shifts occurred on January 30, 2025, when travel nurses were abruptly informed by Vitalité not to report to work. Paula Doucet, president of the New Brunswick Nurses Union, noted that "they were just told not to show up for their shift and to return their work badges." The regional health authority has not yet responded to the October legal action initiated by Canadian Health Labs, which maintains that it is "in full compliance" with its contractual obligations and is "actively seeking a solution" to the ongoing dispute.
Contractual Controversies and Financial Burdens
The contract between Vitalité and Canadian Health Labs has been a focal point of financial strain, with the regional health authority overbudget by approximately $100 million last fiscal year. This overage is largely attributed to the expenses associated with employing travel nurses. The situation has drawn criticism from various quarters, including the Auditor General, who has been vocal about the financial imprudence of such contracts. Auditor General Paul Martin remarked that "the contracts with private nursing agencies were not reflective of best practices and did not demonstrate value for money."
"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." – Auditor General Paul Martin
The Department of Health has refrained from commenting on the situation, leaving many questions unanswered regarding the future of this partnership and its impact on healthcare services in New Brunswick.
Seeking Resolutions Amidst Legal Actions
Canadian Health Labs remains steadfast in its position, asserting that it has consistently met its contractual obligations. An unidentified spokesperson for Canadian Health Labs emphasized their role in mitigating healthcare challenges in New Brunswick:
"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."
Despite the current impasse, Canadian Health Labs is actively pursuing a resolution to restore its operations within Vitalité's network. Meanwhile, Vitalité has confirmed that their contract with CHL remains in force but has abstained from detailing the specifics of their ongoing discussions.
"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," – Unidentified (Vitalité Health Network)
Shifting Focus Towards Local Healthcare Solutions
The broader strategy within New Brunswick appears to be shifting away from reliance on external agency contracts. Horizon Health Network, another regional health authority, ended its use of travel nurses in August. This move aligns with sentiments expressed by various stakeholders advocating for investment in local nursing resources.
Paula Doucet reiterated this perspective, noting that it’s vital for New Brunswick to eliminate travel nurse contracts and focus on retaining existing nursing staff. She expressed, "It's about time New Brunswick gets rid of travel nurse contracts and invests in retaining existing nurses and recruiting more."
The contract with Canadian Health Labs could be automatically renewed up to five times if bilingualism thresholds are met, adding another layer of complexity to future negotiations. However, for now, Vitalité appears committed to reducing its dependence on such arrangements.
"Our goal of ending our reliance on agencies by February 2026 remains unchanged," – Unidentified (Vitalité Health Network)
