FOR IMMEDIATE RELEASE

August 14, 2025

RNU Renews Calls for Answers on $255 Million in Private Nursing Agency Contracts: “Same People, Same Problems”

St. John’s, NL – The Registered Nurses’ Union Newfoundland & Labrador (RNU) says the Public Accounts Committee (PAC) hearing on the Auditor General’s report into private nursing agency contracts left more questions than answers — and confirmed that systemic problems remain unaddressed.

“Over a quarter of a billion dollars was spent on these contracts, and we still don’t know who agreed to them, how they were approved, or how questionable invoices were paid,” said David Hammond, Executive Director of RNU. “The public deserves a full accounting. What we heard on Tuesday did not provide that.”

Government Missed the Mark
During the hearing, government members of the PAC — MHAs Lucy Stoyles and Perry Trimper — spent much of their time setting up answers for NLHS to affirm rather than pressing for accountability. Critical lines of inquiry were left untouched, including the Auditor General’s finding that some spending may have been fraudulent.

While much of the discussion focused on the Central region, the agency used in the Auditor General’s example — Canadian Health Labs (CHL) — had contracts across multiple regions. PAC members did not probe this broader scope.

Unanswered Questions
From RNU’s perspective, the hearing failed to address essential questions:

• Who specifically signed the CHL contracts in each region?
• Who heads the “centralized contracting” process at NLHS?
• What process changes have been implemented to ensure contracts are reviewed, approved, and monitored properly?
• Why were invoices paid that should not have been paid — and who approved those payments?

NLHS is Not Above Reproach
ATIPP records from 2023 confirm NLHS signed contracts with CHL — the very agency flagged by the Auditor General. This fact directly contradicts NLHS CEO Dr. Pat Parfrey’s assertion that NLHS represents the solution to the problem.

The truth is, NLHS is not a clean break from the past. The same senior executive who signed CHL contracts for the Eastern Regional Health Authority – one of the legacy RHAs criticized in testimony – also signed CHL contracts for NLHS as Chief Operating Officer/Vice President. Furthermore, the same senior executive who signed CHL contracts for the Central Health Authority – also a legacy RHA – is now a VP with NLHS tasked with overseeing operations in its Labrador-Grenfell zone.

This is not speculation. This is documented fact. It is the clearest example yet that the leadership and decision-making culture that led to this crisis remain firmly in place. Moving the same people into a new organizational structure does not fix the systemic flaws that allowed over $255 million to be spent without proper oversight.

Public Confidence at Risk
Until government and NLHS provide full, detailed answers and evidence of reform, the public cannot be confident that this will not happen again.

“We cannot simply take it on trust that the same leaders who presided over the problem will now deliver the solution,” said Hammond.

Call for Continued Hearings
RNU urges the Public Accounts Committee to continue its hearings on this matter and demand answers to the outstanding questions.

“This is about transparency, accountability, and the responsible use of public funds,” Hammond said. “If PAC allows these questions to go unanswered, it sends the wrong message to the public and to the healthcare workers who are already under immense strain.”

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About the Registered Nurses’ Union Newfoundland & Labrador
The Registered Nurses’ Union Newfoundland & Labrador (RNU) represents more than 5,800 registered nurses and nurse practitioners working in acute care, long-term care, community, education, and research. RNU is dedicated to advocating for quality public healthcare and ensuring that RNs and NPs are recognized and supported in delivering expert, evidence-based care to the people of this province.

For more information, please contact:

Jonathan Hamel
Director of Communications
Registered Nurses’ Union Newfoundland & Labrador
Phone: (709) 691-6890
Email: jhamel@rnunl.ca