Hospital To Cut Consultant Contracts

February 12, 2011

Bermuda Hospitals Board [BHB] is reviewing its operations for potential savings and efficiencies, and has completed of a review of the use of consultants. A number of contracts have either been terminated, not renewed or reduced, with the annual savings expected to be around $4 million a year.

A spokesperson said: “The continuous review is part of BHB’s commitment to consistently provide value to the community in the face of rising healthcare costs and the current economic challenges in Bermuda. It also reflects BHB’s responsibility to be prepared to meet the financial obligations of the KEMH Redevelopment Project, which includes making repayments for the new hospital facility from 2014 and funding the revitalization of the existing KEMH facility.”

Contracts impacted include the management support contract with Kurron Shares Inc, which is being terminated a year and a half early, and the physician support contract with Greeley, which will not be renewed in 2011. A number of other smaller contracts have either been terminated, not renewed or reduced. In total net savings per annum are expected to be in the order of $4 million.

Additionally, BHB has reviewed its requirements for the Senior Management Team and reduced its size by one position, the Chief of Business Development. Mr Scott Pearman held this position and will now transition into the Chief Operating Officer (KEMH), a position previously covered by the Kurron contract. Mr Pearman was identified for this role as part of BHB’s succession planning process.

Chairman Herman Tucker said:

I am pleased to announce that BHB is entering a new phase. Over the past four years, we have made significant progress and achieved many improvements in patient care and satisfaction. These improvements required additional management resources on a short term basis, both through the use of consultants and employed staff.

On the back of our succession planning process, we are now able to take a critical review of our future needs and are seeking ways to accordingly reduce these costs.

Additionally, BHB’s succession planning programme has identified Bermudians for senior leadership positions that were once held by consultants. With our plans for the new hospital facility approved and a contract signed, the timing was right for a full review so that we only maintain those contracts whose role remains vital for us to meet the long term healthcare needs of Bermuda.

Chief Executive David Hill said:

We have needed some highly specialised support over the last few years to support a huge agenda of improvements and change at BHB. These have seen the completion of a successful procurement process for the new hospital that has included specifying clinical, operational and facility requirements for a building that has to support healthcare for the next few decades.

It has also seen the implementation of a BHB succession planning programme to help identify and develop Bermudian leaders, the successful implementation of many patient care improvements, the construction of the Lamb Foggo Urgent Care Centre, and a number of fundamental changes established to improve physician relations and processes as part of the response to all 15 recommendations set out in the Ombudsman’s report about institutionalised racism in A Tale of Two Hospitals.

We are, however, very cognizant of our duty to control healthcare costs and meet Government budgetary requirements, as well as our required preparation to ensure we can meet annual repayment for the new hospital facility from 2014. While we still need to keep pace with international healthcare standards and developing our service, we are proud to do our part in running a highly efficient healthcare service for Bermuda.

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Comments (3)

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  1. RobbieM says:

    About time! What a waste of money on these consultants!

  2. Sarah says:

    Soooo the first news (correct me if I’m wrong on that) of consultants being cut comes from the hospitals. I guess that’s where my priorities would lie as well. I really hope they’ve thought this through with the patients’ needs in mind.

  3. just fishin' says:

    Hmmm….Did I miss the announcement about how much it cost to terminate the contract ahead of time. There is ALWAYS a clause coverning that in any agreement. I don’t think we saved much in the end. Bet you the termination cost the taxpayers a couple of mil. (Oh, and someone want to ask the HR dept at KEMH how much they paid for new office chairs recently?)