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eHealth Ontario Scandal Grows: Unsigned Contracts

by cyn.khoo | June 9, 2009 at 02:14 pm

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Scandals have rocked eHealth Ontario, amid resignations and suspect contracts.

On Monday, June 8, it was discovered that consultant Penny Ballem was paid $30,000 for 78 hours of work, without a contract.

With Ontario Health Minister David Caplan conceding that reforms are necessary at the embattled agency, documents show that Penny Ballem was paid for the 78 hours over the objections of an eHealth employee who said no contract was signed for her work.

Dr. Ballem got the consulting assignment through Michael Guerriere, a managing partner at Courtyard Group, which itself has lucrative contracts with eHealth. The eHealth employee was told to process the payment to Dr. Ballem because Dr. Guerriere could validate her invoice, the documents show.

Ballem is known for having developed British Columbia's electronic health records system, while deputy minister.

Internal emails by eHealth officials have said a contract is unnecessary if Ballem has satisfactorily completed the services paid for, reports The Globe and Mail. Ballem maintains she was unaware her invoice had been questioned, while Dave Wattling, managing partner at Courtyard Group, said Guerriere had no authority over a matter such as Ballem's contract.

The controversy comes shortly after the resignation of former CEO Sarah Kramer, among further contract and consultancy scandals.

Sarah Kramer resigned as chief executive officer this weekend after only seven months on the job and amid a scandal involving sole-sourced contracts and rich consultancy fees to Courtyard and other firms. She received $316,670 in severance pay, the equivalent of 10 months of her annual salary of $380,000.

eHealth cancelled three of the consulting contracts a week before Ms. Kramer's departure, including one awarded to Dr. Guerriere, agency spokeswoman Deanna Allen said. Dr. Guerriere had billed the agency $3,000 a day while temporarily serving as its senior vice-president of strategy, the documents show.