Committee flags contract-nursing shortfalls at Larner State Hospital, calls for study of high-cost program

Senator Owens told the committee that Larner State Hospital requested substantial contract nursing funding; the special committee originally requested $32.2 million, but the subcommittee added $32.2 million in FY26 and only a $10 million FY27 enhancement to allow verification of hiring and other reforms.

Owens described vacancy rates and staffing challenges: Larner hired 153 FTE and separated 139 FTE in 2025; nursing vacancy rates in parts of the hospital were described as roughly 45% (facility‑wide) and as high as nearly 60% in some programs. The subcommittee noted the facility restricts the use of contractors with prices above $90 an hour and that agencies reported contractor pay to nurses at roughly $50–$55 per hour, creating a spread contractors capture.

Senator Owens and several members said they favor additional scrutiny and solutions that might include adjusting state pay or incentives for nursing students; Owens proposed piloting options and asked for follow up. The subcommittee also requested a two‑day interim study to review the state’s predator treatment program, which Owens characterized as costly: "we're spending $52,000,000 a year to house a little over 200" people in the program and many refuse treatment, he said.

Senators Peddie and Holscher expressed concern that the $10 million enhancement for FY27 was likely insufficient and urged that additional verification and realistic costing be done before final appropriations. The committee approved the Larner report out; senators acknowledged the matter will return for more detailed budget negotiation.

(End note: the transcript uses asterisks for portions of the program name; reporting here follows the committee’s descriptions and funding figures as stated.)