LEADER of Progressive National Party (PNP), and former Medical Services Director, Dr. Rufus Ewing, has said that InterHealth Canada could have to forfeit on the healthcare deal, if it is found that they have breached performance clauses.
The result of the contract was two two-storey hospitals – one in Provo with 20 beds and the other in Grand Turk with 10 beds that came at a high cost to the people of the Turks and Caicos Islands.
The ‘exit clause’ in the InterHealth contract is reported to have penalty cost of $125 million, exclusive of the $125 million mortgage on the hospital buildings, which has a reported 12 per cent interest rate.
If the mortgage runs its full 24-year course, the buildings will have cost TCI residents half a billion dollars.
Ewing told the Weekly News that reviewing the performance indicators against what InterHealth Canada has accomplished will be something that the party will address from day one, if elected.
He said, “The first thing to look at will be service reviews and this will involve putting in place a contract management team, a clinical service review board to do reviews…this is something we will definitely push.
“According to the contract they should have put forward an audited financial reconciliation before we go to what we call capitation [the annual fee paid to a healthcare practice by each participant in a health plan.
“The first two years of the contract is what we call a cost plus and after those two years we go to capitation and the cost is fixed.
“The service contract is only binding for that time (before we go to capitation) and if they do not perform there could be a termination of the service agreement.
“We have to look at this before we go to capitation.”
According to the party leader, there are clear default clauses in the contract.
Ewing said, “In the past both parties, the government and InterHealth, defaulted against each other so they were not inclined to enforce the clause on each other.
“But we have to as a government make full commitment to the contract and enforce all the clauses.”
The full version of the contract, which included 187 separate files and a mind boggling 7,665 pages, was leaked in August. (VANESSA NARINE)
