Auditor General Paul Martin will conduct a review of New Brunswick's controversial use of private agency nurses, known as travel nurses, which is costing taxpayers hundreds of millions of dollars.

His office announced the independent audit of "the management of contracts pertaining to travel nurses" Wednesday in a news release.

The Vitalité and Horizon health networks, the Department of Health and the Department of Social Development will all be audited.

"This work is very important in keeping government departments and agencies accountable for the spending of New Brunswick tax dollars," Martin said in a statement.

Asked what prompted him to undertake the audit, Martin told CBC News his office is "interested in ensuring value for money as it relates to government spending."

"We have been considering an audit of the travel nurse contracts for some time." he said in an emailed statement. "The timing is right given the noted interest to the public and the availability of our resources to complete the audit."

Premier, union called for investigation

Last week, Premier Blaine Higgs called for the auditor general to investigate Vitalité and Horizon's spending on travel nurses, saying the government needs to be prudent in spending to get the best value for taxpayers.

"And this is a situation where it seems like we could have got better value," he said.

The New Brunswick Nurses Union and the Canadian Federation of Nurses Unions have sent three joint requests for an audit since last April. The most recent request was submitted last week, after a Globe and Mail investigation found agencies such as Toronto-based Canadian Health Labs have charged rates of more than $300 an hour — roughly six times what a local staff nurse earns.

Vitalité alone spent about $158 million to hire out-of-province nurses in 2022-23, contracts obtained by the national newspaper revealed.

 Vitalité's third contract with Canadian Health Labs, which continues until February 2026, with a cap of $93 million, effectively charges the regional health authority $306.70 an hour per travel nurse, according to the Globe and Mail. (Pixel-Shot/Shutterstock)

Deputy health minister Eric Beaulieu told a legislative committee the government was aware of Vitalité's first contract, which was worth up to $20 million. It was informed of the other two after the fact, late in the 2022-23 fiscal year, he said.

Vitalité CEO Dr. France Desrosiers has defended the spending, saying the staffing situation was "critical" because of the departures and early retirements during the COVID-19 pandemic — "to the point where we were facing imminent emergency department and even facility closures."

The regional health authority had no choice but to resort to travel nurses, she said.

The audit will consider issues related to procurement, oversight, internal controls and overall value for money, according to the news release.

About transparency, accountability

Paula Doucet, president of the New Brunswick Nurses Union, who learned of the audit through the news release, said she's "happy to hear [Martin] is acting upon our request."

It's about transparency and accountability for New Brunswickers, she said.

"I think with what the Globe and Mail has uncovered in relation to the actual costs and the expenditures of taxpayer dollars, particularly what Vitalité has signed on with Canadian Health Labs, has really brought to the surface just how much is unknown about these private, for-profit nurse agencies and where our tax dollars are going," she said.

"So I think the important thing for the auditor general to do is to find out, you know, exactly where the money's going, how much of it is going there."

The New Brunswick Nurses Union has sent three requests for an audit in recent months, said president Paula Doucet. (Daniel St Louis/New Brunswick Nurses Union)

Doucet hopes the audit will open a broader discussion about where taxpayer dollars are being spent and invested in health care.

"We for a long time have said they need to be here in New Brunswick — invested in New Brunswick workers, invested in New Brunswick infrastructure. And right now there's millions and millions of dollars that are going outside of this province.

"That is not for an economic spinoff for us. And when we have a premier that often talks about return for investment — he's getting no return on this investment, currently."

No timeline

Martin told CBC on Wednesday afternoon that his audit work has already begun. He did not say when.

The audit may involve interviews, review of documents, and various forms of data collection and analysis, according to the release.

"I look forward to reporting on our findings and recommendations upon completion of our audit," Martin said.

He did not respond to questions about how long the audit is expected to take.

Must not exceed mandate, powers, says Vitalité

Vitalité will offer its collaboration on the audit, an unidentified spokesperson said in an emailed statement.

"However, this collaboration must take place within a framework that does not exceed the mandate and powers of the auditor.

"It must ensure compliance with fundamental legal principles, relevant legislative provisions, legal privileges of the network essential to the exercise of its functions, and not harm the organization's ability to provide essential health services to the population."

Horizon and the Department of Health and social development did not immediately respond to requests for comment.