Little benefit in outsourcing health administration

VANCOUVER (NEWS1130) – BC’s auditor general says the government’s decision to outsource administration of the Medical Services Plan and PharmaCare to a US-based company has failed to bring the expected benefits.

In a new report, John Doyle says the province has not held Maximus BC Health accountable for its achievements since the 10-year contract was signed in 2004.

At the time, the government came under fire for handing control over sensitive information to the subsidiary of an American firm as part of a $324-million deal.

While Doyle says new security practices have been implemented, key tools to identify privacy breaches are still not in place and there’s a risk that such breaches are happening without the Health Ministry knowing about them.

The government has fined Maximum in the past for violating service level requirements and at one point, callers inquiring about medical premiums had to wait five times longer than expected before they could speak to someone.

Doyle says while the company has improved some service levels by implementing new call centre technology, the government still needs to let the public know what’s being achieved and at what cost.

Health Minister Margaret MacDiarmid is defending the contract.

She says Maximus is operating the call centres more efficiently, saying when the government managed them in the past, it was a nightmare for callers to get through.

Regarding Doyle’s concerns about the security of the data system, MacDiarmid says the province has been working with his office to further improve the delivery of services.

NDP Health Critic Mike Farnworth says the protection of privacy is a huge issue and he’s concerned the proper technology is in place to ward against breaches.

Meanwhile, MacDiarmid is suggesting the government will renew the contract with Maximus before it expires at the end of March, especially as the government is set to introduce the BC Services Card, which will replace the CareCard.