Untendered $600,000 eHealth consulting contract comes to light
Last Updated: Friday, June 12, 2009 | 10:39 AM ET
CBC News
Related
EHealth Ontario
In depth:
- Examining eHealth Ontario
- Key players in the contract and spending scandal
- Electronic health records
- Potholes on the road to eHealth
In the news:
- EHealth scandal a $1B waste: auditor
- Oct. 7, 2009
- Former eHealth CEO challenges auditor's findings
- Oct. 7, 2009
- Opposition calls for Smitherman's head
- Oct. 7, 2009
- Ontario health minister quits
- Oct. 6, 2009
- Rules not followed in London eHealth contract
- Sept. 21, 2009
- EHealth Ontario probe quietly dropped
- July 22, 2009
- Ontario premier defends eHealth's board
- June 9, 2009
- EHealth's problems go beyond fired CEO, opposition says
- June 8, 2009
- Head of eHealth Ontario is fired amid contracts scandal, gets big package
- June 7, 2009
- Kramer's $114,000 bonus was double eHealth's allowable rate
- June 5, 2009
- Another untendered contract surfaces at embattled eHealth Ontario
- June 4, 2009
- Personal ties exposed in eHealth's untendered contracts
- June 3, 2009
- EHealth storm may trigger reforms for taxpayer-funded consultants: McGuinty
- June 2, 2009
- Minister orders review of spending at eHealth Ontario
- June 1, 2009
- Opposition wants minister's resignation over eHealth spending
- May 28, 2009
- Ont. health agency scrutinized for contract tendering practices
- May 27, 2009
Documents:
- Kramer's salary, information about bonus cuts (PDF)
- Letter regarding freedom of information request (PDF)
- Billing from Anzen consulting (PDF)
- Receipts from two Alberta consultants (PDF)
External links:
An untendered contract worth $600,000 between eHealth Ontario and a management consulting firm has surfaced, adding to the controversy surrounding the agency responsible for digitizing the province's health record system.
The contract went to RPO Management Consultants and was one of a growing list of contracts not opened to a competitive bidding process, sources told CBC News.
The firm, which has offices in Toronto and Vancouver, has connections to Vancouver's city manager, Dr. Penny Ballem, who served as a senior advisor with RPO before she took up the municipal post.
Ballem, a former B.C. deputy health minister, has already been ensnared in the eHealth controversy after it was revealed she was paid $30,000 in late 2008 for 10 days of consulting work on a diabetes registry for the agency without a written contract.
"I have no concern; I did some honest work for eHealth Ontario," she told CBC News.
Verbal agreements are common in the consulting world, Ballem said, and her fee was on par with what is paid in the sector and included travel and living expenses.
"It never occurred to me that I wouldn't ever get paperwork, and frankly, I never tested that because I had to go back to them and say that I was taking another position," Ballem said.
When Ballem dropped the eHealth consulting gig, RPO took over.
Ballem said she stopped serving as an advisor at RPO when she became Vancouver's city manager in mid-December 2008. The eHealth contract was doled out to RPO some time in the following months.
"There's no conflict of interest there," she said, pointing out that the health care community in Canada is relatively small.
EHealth came under scrutiny after it was revealed it failed to open more than $5.5 million worth of contracts to competitive bids.
Some of those contracts were doled out to firms with personal connections to the agency's CEO, Sarah Kramer, and chairman of the board of directors, Dr. Alan Hudson.
Kramer was fired June 7 over the scandal.
Health minister should resign: physicians coalition
Meanwhile, the Coalition of Family Physicians of Ontario, which represents almost 3,000 family doctors, is calling on Hudson as well as Ontario Health Minister David Caplan to resign, saying that "new leadership is required."
The New Democrats and Tories have also urged Caplan to step down
A third-party consulting firm, PricewaterhouseCoopers, is reviewing eHealth's books under the oversight of an internal government auditor.
The provincial Health Ministry has also asked Ontario Auditor General Jim McCarter to expedite his assessment of the agency's spending practices, which was due in December 2008.
Ontario NDP Leader Andrea Horwarth has called on the auditor general to investigate all contracts between government ministries and agencies and the consulting firm Courtyard Group. The firm was awarded nearly $2 million in sole-sourced contracts from eHealth, and questions have been raised about its ties with Hudson.
"In light of the recent revelations regarding eHealth Ontario and serious allegations of sole-source consulting contracts worth nearly $2-million, the concerns are very troubling," Horwath wrote.
EHealth was set up in 2008 to create a province-wide computerized health record system by 2015. The agency's predecessor, Smart Systems for Health Agency, folded following criticism of mismanagement and high spending on consultants.
If you have information on this story, send an email to yournews@cbc.ca.
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