Big B.C. privatization contract backfiring on Campbell Liberals

U.S.-based Maximus bungling management
of B.C. PharmaCare and Medical Service Plan

Victoria - The decision by the B.C. Liberals to privatize the management of its PharmaCare and Medical Service Plan programs to an American company is looking worse by the day – especially for B.C. residents stuck with lousy service.

The British Columbia Government and Service Employees' Union (BCGEU/NUPGE) says the recent resignation of Richard Mason, the president of Maximus Inc., is a sign of deep trouble within the Virginia-based company, which has repeatedly failed to live up to the performance terms in its 10-year, $325-million contract with the government of Premier Gordon Campbell.

Mason has been replaced temporarily by Brian Pollick, who runs Canadian operations for the company. The company has already been fined three times, in the three months it has held the contract, for failing to deliver on performance promises required by the contract.

Beyond poor performance, the deal has also been widely condemned by critics, including B.C. Privacy Commissioner David Loukidelis, for making B.C. residents unnecessarily vulnerable to the sweeping powers of the U.S. Patriot Act. The act gives American authorities such as the FBI access to personal information held by U.S. companies, including firms that operate in Canada.

Clear sign of trouble

BCGEU president George Heyman says the resignation of the Maximus president and the repeated fines levied against the company are signs of serious trouble for the province.

“These developments cast more doubt about the Campbell government’s overall privatization agenda,” Heyman says. “And it’s a clear sign that the controversial privatization deal that turned management of the Medical Services Plan and Pharmacare over to Maximus is mired in trouble.”

The union is renewing its call for health minister George Abbott to fully disclose the service requirements that Maximus has violated, the total number of violations that have occurred and the amount that Maximus has been fined.

Given that Maximus has failed to meet requirements in each of the first three months it has been on contract with the province, it’s time for Campbell to give the job back to provincial public employees, Heyman argues.

“These are important, complex services. We think it’s time for the Campbell government to bring the service back under public administration,” he says.

“We think that British Columbians have been sold a bill of goods by a number of multinational companies that have been awarded privatization contracts who simply can’t deliver complex services like these."

'Off the rails'

The opposition New Democratic Party is also concerned about the deal.

"The sudden resignation of Maximus's president raises serious questions about the management of B.C.'s medical service and Pharmacare plans," said health critic Rob Fleming. "It's clear this scheme has gone off the rails and is not serving the public. The B.C. Liberals need to step back, re-evaluate this contract and re-think their plans to hand more tax dollars to Maximus."

Although the government remains secretive about Maximus' shortcomings, it is known that the company has fallen badly short on its commitment to restrict waiting times to a maximum of three minutes when people call for information. Waits of 15 minutes or longer have been reported by some people.

For his part, Abbott was quick to apologize for the company and downplay the impact on B.C. residents. "This is a new service, and I think we have seen some growing pains as a new service is put in place," he said.

Abbot also blamed British Columbians for placing too many calls, saying that the number exceeded what the government and company anticipated.

More than 200,000 people placed calls in June, overwhelming Maximus staff. In recent weeks 13 new employees have supposedly been added and another 25 are to be hired in the coming weeks, the company says. NUPGE

More information:
• B.C. ignores privacy to outsource medical data to U.S.
• British Columbians double-crossed, says BCGEU
• BCGEU demands halt to outsourcing of private data
• Privacy and the USA Patriot Act pdf
• Patriot Act will prevail over B.C. privacy legislation
• U.S. would overwhelm feeble B.C. privacy protections
• Quick Facts - Powers of the U.S. Patriot Act
• Part 1 - BCGEU Submission to Privacy Commissioner on U.S. Patriot Act pdf
• Part 2 - BCGEU Submission to Privacy Commissioner on U.S. Patriot Act pdf

Web posted by NUPGE: 21 August 2005

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