Promised audits of InterHealth Canada not yet begun

The original article can be found in: Turks & Caicos Weekly News By Vanessa Narine

THE financial and clinical service audits of the local hospitals, functioning as a result of the controversial InterHealth Canada deal, have not yet started.
Former Health Minister, Amanda Misick, in her last public statement noted that her Government had “begun the financial audit of the hospital and put systems in place for the conduct of a clinical audit.”
According to her, both of these will have the effect of reducing hospital costs and improving clinical care, in addition to holding the hospital accountable for any defaults under the contract.
Misick said that her Government “established the TCIG representative, the Clinical Services Review Board and the Contract Management Team that will be responsible for the managerial oversight of the hospital contract.”
However, in an interview with the newly appointed Chief Executive Officer (CEO) of the Cheshire Hall Medical Centre, Jill Magri, she noted that neither the financial or clinical services audits have started.
Magri said she was aware that the committees to undertake the audits were established, but to her knowledge they were not yet active.
“To my knowledge there has not been a formal meeting of the committees,” she said.
The new CEO made it clear she welcomes the work to be done under both audits and will cooperate fully.
The Weekly News spoke to Finance Minister, Washington Misick, who explained that he believes the delay with the financial audit was the need for a review to the Terms of Reference (TOR) of KPMG, the firm that will be handling the audit.
KPMG is a global network of professional firms providing audit, advisory and tax services.
Misick added further clarification to the second audit, stating that he believes the clinical
services audit will commence once the financial audit is completed.
The full version of the contract, which included 187 separate files and a mind boggling 7,665 pages, was leaked last August.
The result of the contract was two small 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 a 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.
Governor Gordon Wetherell signed the contract in late 2008 following negotiations and decisions made by the then Health Minister Lillian Boyce, Finance Minister Floyd Hall and Director of Medical Services, Dr. Rufus Ewing, currently the leader of the Progressive National Party.
Under the contract, the National Health Insurance Plan (NHIP) was established in April 2010 and Ewing had the responsibility for managing primary care in TCI, while InterHealth Canada took over the responsibility for hospital management and secondary care.
Chief Financial Officer (CFO), Mr. Hugh McGarel-Groves in mid-June said NHIP was an absolute scandal and the biggest financial mess the interim administration has had to deal with.
According to him, NHIP is now reported to be costing the people of the TCI $60m annually or approximately 40 per cent of government revenue.
The NHIP has proven to be a tremendous burden on the Government and many locals are dissatisfied with the coverage provided.
Last October, Premier, Dr. Rufus Ewing, noted that InterHealth Canada could have to forfeit on the deal, if it is found that they have breached performance clauses – something the financial and clinical audits will assess.

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