Adrian Dix, Minister of Health, has issued the following statement regarding concerns raised about decisions and spending at the Provincial Health Services Authority (PHSA).
“On Monday, Nov. 30, 2020, specific concerns about decisions and spending at the PHSA were raised through the media. In response to the concerns, I directed the deputy minister of health to assess the PHSA’s decisions and conduct relating to specific concerns, and to provide recommendations on actions, changes to policies or other such changes that could be taken.
“The concerns to be assessed were that:
- the PHSA undertook unnecessary, unbudgeted renovations to the 14th floor of PHSA headquarters at 1333 West Broadway, Vancouver;
- the PHSA made inappropriate human resource decisions relating to hiring, appointments, continuity planning, severance and salary continuance;
- the PHSA authorized excessive catering expenses for PHSA executives and staff from mid-March 2020 to mid-June 2020; and
- concerns relating to the procurement of problematic respirators and appropriateness of followup with the vendor.
“On Thursday, Dec. 3, 2020, I received and accepted recommendations made by the deputy minister. These include:
- limitations on the PHSA’s authority to spend internal capital without the deputy minister’s approval;
- a review and refresh of policies relating to internal capital planning, to be completed by the Ministry of Health;
- limitations on the PHSA’s authority to make senior executive changes without the deputy minister’s approval;
- a review of business meeting expense policies for the PHSA and each regional health authority to ensure expense policies are reasonable from a taxpayer’s perspective; and
- the hiring of an independent third-party advisor to provide a report to the deputy minister of health that will fully clarify and review concerns about the appropriateness of the PHSA’s handling of a problematic purchase of personal protective equipment and other related concerns, to help restore public confidence in the PHSA and its leadership.
“I have made it clear that it is critical that the public has confidence in the PHSA and the management of B.C.’s health system in general.”
A backgrounder follows.
Backgrounders
Regarding tenant improvements at Provincial Health Services Authority (PHSA) headquarters on 1333 West Broadway:
- Direct the PHSA that no further planning or spending of internal capital is to occur unless expressly approved by the Ministry of Health. This directive is to stay in place until such time that the Ministry of Health provides updated direction to health authorities around the appropriate management of internal capital.
- Direct the associate deputy minister, corporate services, to review and refresh any and all policy or guidance documents issued to health authorities with respect to internal capital planning.
Regarding PHSA’s decisions related to executive-level staffing, adequacy of continuity/transition plans and severance/salary continuance:
- Direct the PHSA to eliminate the chief of staff function no later than Dec. 11, 2020.
- Direct the PHSA to not make any further decisions regarding the hiring or dismissal of members of its senior executive team without the approval of the deputy minister of health. This direction will remain in place until March 31, 2021.
Regarding catered meals for staff and executive:
- Direct the associate deputy minister to co-ordinate a review of the business meeting expense policies for the PHSA and each regional health authority and to provide recommendations for revised policies that will ensure business meeting expenses are reasonable for a taxpayer-funded organization and consistent across health authorities, acknowledging variance of cost across locations and regions.
Regarding the purchase of problematic personal protective equipment:
- Direct the deputy minister of health to hire an independent third-party advisor to provide a report to the deputy minister no later than Jan. 15, 2021, that:
- fully clarifies the PHSA CEO’s role in all aspects of the transaction with Luminarie, a health-care product distribution company;
- reviews concerns raised about the appropriateness of the decisions made to dismiss members of the PHSA’s executive team and chief internal auditor; and
- provides other information, advice or recommendations, as appropriate, that will help restore public confidence in the PHSA and its leadership.
- John Bethel, national health care leader, Ernst & Young, is recommended as the advisor based on his leadership in health-care practice nationally and his experience with health-care transformation in B.C.
https://news.gov.bc.ca/23362
Office of the Premier
