Auditor General of Newfoundland and Labrador, Denise Hanrahan, today delivered a performance audit report to the House of Assembly on health sector contracts phase one – nursing agency contracts.
Today’s report contains findings and recommendations regarding Newfoundland and Labrador Health Service’s inability to effectively procure and manage agency nursing contracts worth over $240 million; how the health authority failed to ensure value for money; as well as details on how the authority failed to adequately plan for agency nursing usage.
“To say some of the findings in this report are surprising may be putting it mildly. Newfoundland and Labrador Health Services has not followed its own processes and best practice in the procurement and payment of agency nursing services,” commented Denise Hanrahan, Auditor General of Newfoundland and Labrador. “Health Services failed to adequately plan for its use of agency nursing, resulting in spending that continues at near record levels. By March of this year, the average agency nurse will cost taxpayers over $400,000 annually.”
The audit found that invoice payment processes and conflict of interest protections were seriously flawed. For example, the audit identified almost $4 million worth of potential overpayments, from a small sample of seven per cent of invoices paid over two and a half years. Three out of four of these sampled invoices lacked the proper documentation to support payment. Further, the audit found that Health Services did not require employees to sign a code of conduct or conflict of interest agreement at hiring or annually nor did they train their staff about their responsibilities in these areas.
“While Newfoundland and Labrador Health Services has reduced the quantity of agency nurses working today, it has not reduced their overall cost, with spending per quarter similar to past periods with less travel nurses engaged,” continued Auditor General Hanrahan. ‘I am very concerned about its ineffective administrative management, with the acceptance of poor documentation, unrealistic budgeting, ineffective planning and potential conflicts of interest resulting in a system that costs taxpayers money.”
The full report as well as an audit overview can be found by visiting. www.ag.gov.nl.ca.
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