Contracting out - Healthcare services audit

[TylerM4]

A very interested report released by BC auditor general today. Suspect we'll see some news articles once mainstream media catches wind.

Here's a link to the Auditor General webpage: http://www.bcauditor.com/pubs/2016/work ... -diligence
Here's a link to the full report: http://www.bcauditor.com/pubs/2016/work ... -diligence
And here's a link to the video summary of the report for you lazy people (Joking - it appears to be tailor made for media outlets to rebroadcast). https://www.youtube.com/watch?v=977Y4NxhK28


The report looks at the province -wide contracting out of healthcare computer services/IT services to IBM. And can basically be summarized in 3 points:
- Government did no business analysis to actually prove that this was a good decision and would save money.
- Government had information suggesting that this was NOT a good idea and would not save money, but chose not to pursue.
- Government estimate for cost was approx. $350million a year, while last year's cost for this service was actually almost $1Billion.

It's a pretty scathing report overall but they were careful to remove any emotion or accusations. Nor did they actually say it was a bad decision, tho the data certainly implies such. Basically it says government made a multi-billion dollar decision, with huge potential to impact healthcare, based on politics rather than a sound business decision.

[flamingfingers]

^^Typical ChristyLiberal decision-making.

- No business plan.
- Advised NOT to proceed - proceeds anyway.
- Costs the TAXPAYERS more than twice that estimated.

[bob vernon]

There WAS a business plan. The contracts would be awarded to Liberal-friendly businesses. And those business would kick back, I mean contribute...... to the party as a show of appreciation. There was definitely a business plan.

[dogspoiler]

For all the people that are surprised by this, there is a meeting being held in the phone booth at the corner.

[Veovis]

Sadly this is the same process as giving big back room contracts to unions that make the same back door contributions and campaigning funding.....but let's be shocked at one group and not the other....gasp

[flamingfingers]

Sadly this is the same process as giving big back room contracts to unions that make the same back door contributions and campaigning funding.....but let's be shocked at one group and not the other....gasp

prove to us that unions have benefited by 'back door contracts' that relate to their contributions to political parties as compared to the 'back door contracts' that relate to the ChristyLiberals' donors, OK?

[TylerM4]

There WAS a business plan. The contracts would be awarded to Liberal-friendly businesses. And those business would kick back, I mean contribute...... to the party as a show of appreciation. There was definitely a business plan.

I'm not much of a conspiracy theorist, but I think you're onto something here.

This contact was awarded to IBM and suddenly IBM was the main business sponsor for Vancouver Olympics.

[erinmore3775]

The Auditor's report clearly shows that this current government fails to have in place the appropriate checks and balances in place to approve major long term and very expensive provincial contracts. Instead they approve contracts on how they "fit in" to a private is better than public ideology. This is clearly shown in the way that the Government and HSSBC approached this contract. What follows are some key examples of this from the Auditor's Report.

http://www.bcauditor.com/sites/default/files/publications/reports/FINAL_Workstation_Support_Services.pdf

“HSSBC’s legal analysis was not documented. HSSBC did not give us any formal documents that would demonstrate its due diligence. They also informed us that the analysis was provided verbally to decision-
makers.This is a significant shortcoming of HSSBC’s approach given the risks, costs and implications of this. Despite having no written evidence, HSSBC told
us they had completed appropriate due diligence…” [page 24] Yet HSSBC indicated that the procurement of this system followed all the “current” government’s procurement legislation and policy. Without directly saying so, the Auditor said that there was no true procurement policy to be followed.

The Government and HSSBC failed to conduct a detailed business analysis. “As a result, the business analysis did not clearly demonstrate that the benefits outweighed the costs of the deal as a whole.” [page 25]

What was even more damming were the following Auditor's observations:

“Significant gaps in the analysis included some that were not quantified:

- cost-savings from onboarding, rather than going back to market for a new procurement potential costs associated with the risk of reduction in services and service levels
- contract management costs

And some that were not included:

-potential risk of staff redundancy costs, such as layoffs, that will be incurred upon termination the service provider’s services
-costs of providing space for service provider employees for the contract term.”
[page 27]

This is not the first time something like this has happened. In education the government put in place BCESIS. This failed system is now being replaced at extreme expense and without a great deal of analysis or consultation. BCESIS was also implemented in the same way.

Unfortunately, in Victoria, only the Auditor is standing up for taxpayers, voters, and citizens. The current Government does not believe in accountability. Yet the Opposition parties do not have policies or platforms that oppose the present Government's policies or the willingness to hold them to accountability practices. It is time that not only the political parties, but the media and our citizens start to question these policies and the way things should be done now and in the future. It is time for things to change. It must start now.

[maryjane48]

yes change needs start now and it is up to us to make it happen .

[gordon_as]

interesting. How did I miss this thread back in November ? Oh , right , I was a bit preoccupied worrying about getting my pink slip from IHA in December.

[alfred2]

interesting. How did I miss this thread back in November ? Oh , right , I was a bit preoccupied worrying about getting my pink slip from IHA in December.

Another hog at the govt. trough and wants to keep it that way so ndp can hire him back.

[maryjane48]

Sadly this is the same process as giving big back room contracts to unions that make the same back door contributions and campaigning funding.....but let's be shocked at one group and not the other....gasp

sadly your whole post reflects a lie .

[ferri]

[flamingfingers]

Strange that the Auditor General didn't look at the costs for contracting out MSP 'services' to MAXIMUS, a US firm and its contract with the BC Liberals that has ballooned 50% from 2005!!!! And this is why Christy keeps jacking up MSP rates - and her promised cut to MSP premiums in 2018 will somehow mysteriously disappear!!!

[gordon_as]

interesting. How did I miss this thread back in November ? Oh , right , I was a bit preoccupied worrying about getting my pink slip from IHA in December.

Another hog at the govt. trough and wants to keep it that way so ndp can hire him back.

Another completely uninformed poster relying on old stereotype cliche's , because that's a lot easier than actually doing any research or thinking.
Would rather pay double for a service , as long as it's not going to a union "hog".