Bombshell AG report finds NLHS overspent millions on agency nurses in N.L.

Another bombshell report from Newfoundland and Labrador's auditor general found the province's health authority hired agency nurses at a frivolous pace without proper financial or credential oversight.

The report also shows millions of dollars of ineligible expenses being paid and instances of possible fraud.

Denise Hanrahan said Newfoundland and Labrador Health Services spent over $132 million on agency nurses to fill gaps in the health-care system in 2024, a massive increase from just $18 million spent in 2022.

In total, the health authority has paid out over $241 million to 11 agencies since 2022.

According to Hanrahan's report, the health authority's current spending means that the average agency nurse is costing it over $400,000 annually. By comparison, a mid-career nurse already in the provincial health-care system costs around $118,000.

"At the start of this audit, I expected the health authority to manage those contracts appropriately," she said.

"To say our audit found the opposite of that is an understatement. The heath authority did not follow their own processes in the procurement of agency nursing services, or even best practice."

Hanrahan said a sample size of 84 invoices showed over $4 million in overspending, including instances where non-reimbursable expenses were paid. There were also incidences of overtime being paid out with no proof it was actually worked.

She said the health authority also accepted language in its contracts with nursing agencies that was often unfavourable, and that there was little evidence of credibility checks when negotiating with agencies. Those contracts were often signed using emergency exemptions, rather than open, public bidding.

"The vague contract language meant money was also wasted on other charges that should never have been paid. In my opinion, it shows a complete lack of respect for public funds," she said.

Hanrahan pointed to a specific example where NLHS signed a $28-million contract with a nursing agency in 2022 that had less than two years of experience, calling it "simply not acceptable."

Those who represent registered nurses already in the province's health-care system first made calls for Hanrahan to investigate agency nurse spending in early 2024. At the time, it was revealed that the health authority spent $35.6 million on agency nurses from April to August 2023.

Hanrahan said almost the same amount had been spent on agency nurses between January and March 2025, and questioned the spending given reporting from the health authority in February that the use of agency nurses had dropped by 42 per cent from its highest point.

"To me, it's disingenuous to say you have almost a 50 per cent reduction in travel nurses, and that's head count ... but you're spending the same amount."