N.L. spent $1.1M on forensic audit of journey nurse company funds, findings stay off limits to public

Newfoundland and Labrador well being officers are retaining particulars of an exterior forensic audit of funds made to a journey nursing company below wraps — no less than for now.

The province’s well being authority paid Deloitte LLP almost $1.1 million to conduct the audit, in accordance with information obtained by CBC Investigates by means of entry to info.

There had been 5 funds in complete to Deloitte; the primary in September 2025, with the final bill — described as “final” — dated in early February of this 12 months.

Newfoundland and Labrador Health Services just lately rejected a CBC access-to-information request for the audit’s findings.

The well being authority cited a discretionary part of the legislation that permits coverage recommendation or suggestions to be withheld.

According to that very same part of the legislation, officers can’t refuse to reveal “a final report or final audit on the performance or efficiency of a public body or on any of its programs or policies.”

In its Aug. 21 response denying entry, the well being authority wrote: “Content experts with NLHS have advised that the report is not yet finalized.”

NLHS didn’t present a response to CBC questions despatched Aug. 31 about when the report shall be finalized and why it’s not now, given the actual fact the ultimate fee bill was dated greater than seven months in the past.

Health officers additionally didn’t present particulars on who the “content experts” are, or their space of experience.

According to the NLHS request for proposals, the preliminary deadline for the audit report back to be delivered was Sept. 30, 2025.

“Any extension beyond [that date] would be considered for extraordinary or unusual circumstances, at sole discretion of NLHS,” the paperwork famous.

AG advisable assessment of ‘Agency A’

Deloitte was referred to as in after final summer season’s stinging report by Auditor General Denise Hanrahan on journey nurse spending.

Hanrahan discovered that an organization — dubbed “Agency A” in her report — billed taxpayers tens of hundreds of thousands over a span of three years.

Records obtained by CBC Investigates present that Agency A is Canadian Health Labs. That firm had contracts to offer journey nurses within the province, who crammed vacancies after the pandemic.

The AG’s report “found many of the items reimbursed to be non-compliant.” 

That included bills charged to taxpayers equivalent to a milk frother, meals processor and an air fryer.

Hanrahan additionally highlighted issues about electrical car leases charged to the well being authority by Agency A, saying there have been “strong indications of potential billing fraud.”

In response to a subsequent CBC Investigates story about these EV leases, CHL despatched a press release: “We have completed a thorough internal review of the matters referenced and are satisfied that NLHS was billed accurately for services provided.”

And the company defended its contracts in a 2024 Globe and Mail story, saying they “reflect the extraordinary logistical challenges of getting and keeping health-care professionals in rural, remote and underserved communities.”

According to the AG’s report, Agency A obtained $73.6 million from the province over a three-year interval from 2022 to 2024.

Hanrahan advisable that NLHS “complete an immediate comprehensive audit of all amounts paid to Agency A from April 2022 to present, to recover public funds paid in error.”

Canadian Health Labs didn’t reply to requests for touch upon this story.

Potential subsequent steps stay unclear

More than a 12 months in the past, then-NLHS CEO Pat Parfrey informed a legislative committee that any subsequent steps would rely upon the findings of the audit.

“The intent will be that the auditor would report back to us at the end of September [2025], and then a decision will be made concerning whether there was potentially fraudulent activity and how we would refer to the appropriate agencies,” Parfrey mentioned.

When questioned by reporters this April, then-health minister Lela Evans mentioned the audit was “nearing completion,” however famous the significance of not dashing it.

“If we can release it, we will be releasing it,” she mentioned. “This government ran on transparency and we will be transparent. The only thing that will keep us from actually sharing it with the public would be if there’s any legal action being taken.”

Evans added: “If there was wrongdoing, people have to actually be accountable.”

A brand new minister, Joedy Wall, took over the well being portfolio final month.

Officials in his division steered CBC inquiries concerning the audit again to NLHS.

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