News that the four regional health boards quietly signed a contract with an American company last year to help hospitals and long-term care homes run more efficiently is causing a stir in health care corners.
The deal with US-based Change Healthcare Canada was signed last June but was never made public by government.
The contract includes up to $35-million in incentives for the company depending on the success of the program. In other words, the more savings identified, the more money the company makes.
The health authorities will use the company’s software to track everything from staffing costs, overtime, sick time, payroll errors, and precise hours worked.
(Sherry Hillier via Facebook.)
CUPE president Sherry Hillier says the contract should be canceled, adding there were cheaper ways to get the job done.
She notes the health authorities are just renting the technology, explaining it would have been simpler and cheaper to buy similar software outright.
However, Health Minister John Haggie disagrees, insisting the decision will benefit the health care system in the long run and go a long way toward reducing staff burnout.
The company was given $3-million up front to implement the system. The health authorities could also face $5-million in penalties if they fail to achieve a high percentage of efficiencies through its use.
