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Audit Flags Potential Fraud and Excessive Spending in Newfoundland’s Travel Nurse Contracts

The report compels Newfoundland and Labrador Health Services to audit all payments following revelations of dubious billing practices

The main entrance to St. Clare's Mercy Hospital is shown in St. John's on Tuesday, Jan. 11, 2022.  The CANADIAN PRESS/Paul Daly
Denise Hanrahan, Newfoundland and Labrador's auditor general, speaks to reporters in St. John's, N.L., on Wednesday June 25, 2025. THE CANADIAN PRESS/Sarah Smellie
Auditor General of NL, Denise Hanrahan speaks to media on June 25, 2025, regarding an audit her office performed on health sector contracts under NL Health Services.
 Dr. Pat Parfrey, NL Health Service’s CEO, says that they have been working on recommendations before the audit was even complete.

Overview

  • The audit found that the province spent more than $241 million on travel nurses from 11 private agencies between 2022 and 2024.
  • Contracts have cost over $400,000 per nurse annually and flagged strong indications of potential billing fraud.
  • One agency billed $91,000 for 81 weeks of electric vehicle rentals for out-of-province nurses and received over $545,000 for cars leased from an affiliated company.
  • Auditors found no evidence that Newfoundland and Labrador Health Services assessed its nursing needs or set targets to reduce vacancies.
  • Hanrahan’s report orders a comprehensive audit of all payments to the implicated agency to recover possible misspent public funds.