PHSA’s budget restricted after misspending: health minister

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VANCOUVER (NEWS 1130) — Accusations of misspending have led to expense restrictions at the Provincial Health Services Authority (PHSA) after a review found major issues, according to the health minister.

Adrian Dix issued a statement Friday confirming concerns raised earlier this week against the PHSA were not baseless.

The day before, Dix said he accepted recommendations put forward by Deputy Minister Stephen Brown in response to the findings.


Dix plans to limit internal capital spending unless authorized by Brown. Dix is also restricting the authority’s power to make senior executive changes without Brown’s approval, and the PHSA has been ordered to eliminate an unauthorized chief of staff job by Dec. 11.

The Ministry of Health will additionally review and refresh internal capital planning policies.

“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,” Dix writes in a release.

The review was ordered into “unnecessary, unbudgeted renovations” at the PHSA headquarters in Vancouver. Concerns were also raised about excessive catering expenses between March and June, the inappropriate hiring or promotion of staff, and procuring problematic PPE and respirators.

An independent advisor will be hired to report back on faulty safety gear by Jan. 15. Dix has yet to confirm reports as much as $7 million may have been wasted on counterfeit or unusable products from suppliers in China.

The health critic for the BC Liberals, Renee Merrifield, says taxpayers have a right to now if millions of dollars have been wasted on equipment that doesn’t work and renovations that weren’t needed.

“Every dollar that is wasted in the health care system is a surgery that wasn’t done –something that was delayed for a patient, so we’re not just talking about transparency and accountability. We’re talking about patient care. Ultimately, when we waste money in the health care system, the patients suffer,” she says.

In a statement, PHSA leadership says it acknowledges the Ministry of Health’s review and accepts the recommendations.

“We have been and continue to be fully supportive of the review and we now welcome the recommendations as an opportunity to ensure public confidence in PHSA and its leadership,” the statement reads. “Further, PHSA supports the independent review into provincial PPE procurement. To protect the integrity of that work, we will provide no further comment at this time. We thank all of our staff, medical staff, paramedics and partners for continuing to go ‘above and beyond’ in everything they do, especially in response to global COVID-19 pandemic.”

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