EHealth's problems go beyond fired CEO, opposition says
Agency's board of directors deserves closer scrutiny: Runciman
Last Updated: Monday, June 8, 2009 | 2:56 PM ET
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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:
The dismissal of eHealth Ontario's CEO has done little to quell the firestorm surrounding the provincial agency, with opposition parties now calling for the resignation of the health minister and a closer look at the troubled agency's board of directors.
Sarah Kramer was given a $317,000 severance package after being fired as eHealth Ontario's CEO and president. (CNW Group/eHealth Ontario) New Democrats and Tories want Health Minister David Caplan to step down over his handling of the eHealth imbroglio involving eHealth failing to open more than $5.5 million worth of contracts to competitive bids, with some doled out to firms with personal connections.
Sarah Kramer was given a severance package worth about $317,000 after leaving her post as eHealth CEO and president on Sunday.
In a statement issued Sunday, Caplan said Kramer's departure was the result of a request from the eHealth board, saying the scandal threatened to delay the agency's work.
New Democrat France Gélinas, the party's health critic, lambasted the Liberal government for giving Kramer a severance package and for taking its cues on dismissal from eHealth's own board.
"To me this weekend was the icing on the cake. When the board of directors of eHealth told the minister that they had to let go of Ms. Kramer," said Gélinas.
"Does he fire her because he has just cause to do this? Not at all. He buys her to go away, again using our taxpayer's money."
Kramer came under scrutiny for a $114,000 bonus given to her after four months on the job and on top of her $380,000 salary. The amount was double the agency's allowable rate for performance pay and triple the amount she made at her previous job as vice-president at Cancer Care Ontario.
Kramer took the top post at eHealth last November shortly after eHealth was set up to create a province-wide computerized health record system by 2015.
The agency's six-year-old predecessor, Smart Systems for Health Agency, folded following criticism of mismanagement and high spending on consultants.
Can't hold each other accountable: Runciman
Interim Progressive Conservative Leader Bob Runciman warns that the troubles at eHealth go beyond the CEO.
"I've described them as an incestuous little gang, and there's no way that they can hold each other accountable," Runciman said.
He said the board of directors, chaired by Dr. Alan Hudson, warrants further examination.
Though Kramer signed off on many of the untendered contracts totalling more than $5.5 million, the board, with Hudson at its helm, approved several of them prior to Kramer's start at eHealth.
Hudson has been accused of ties to Courtyard Group, a consulting firm awarded three untendered contracts from eHealth worth nearly $2 million. Sources described Hudson as an old colleague and mentor to Michael Guerriere, a founding partner at Courtyard.
Guerriere served as eHealth's interim senior vice-president of strategy, a position that allowed him to oversee Courtyard's work and advise eHealth on its consulting needs. He charged more than $3,000 a day for his time.
His wife, Miyo Yamashita, also heads a firm, Anzen Consulting, that benefited from a $280,000 untendered eHealth contract in October.
Yamashita charged the agency for such tasks as reading New York Times articles for her husband, reviewing a holiday voicemail message and debriefing during a subway ride.
Agency getting back on track
A third-party consulting firm, PricewaterhouseCoopers, is reviewing the agency's books, under the management of an internal government auditor.
The 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.
Board chairman Hudson has continued to refuse requests for interviews.
EHealth spokeswoman Deanna Allen said Hudson is not talking publicly because he's already outlined his comments in a letter about Kramer's departure, can't legally say more and doesn't want to prejudice the outcome of the audit.
Meanwhile, questions have arisen over whether the agency will be able meet its 2015 deadline for a comprehensive electronic health record system.
"Nothing much will happen for months while they replace [Kramer] and it is unlikely they'll get someone as good as her for the job," said Toronto-based health policy analyst, Michael Rachlis.
A health ministry spokesman says not much was happening at eHealth while the agency was under the microscope. With Kramer's departure, the agency is looking forward to getting back on track.
Deputy Health Minister Ron Sapsford will serve as the interim head of eHealth.
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