Mar 26 2006

Nurseline saved

Category: Sharp EdgesJim Taylor @ 12:01 am

Sunday March 26, 2006

No local passion in international corporations

The most significant news items sometimes get little or no coverage in the news media. I\’m thinking specifically of an announcement that – as far as I can tell from googling Internet news – got picked up by only one journalist in Canada.
        Bill Tieleman of Vancouver reported this week that the B.C. government had decided not to privatize B.C. Nurseline after all.
        A year before, the B.C. government had announced plans for a $135 million deal to privatize the popular nursing teleservice. “Teleservice” – that\’s a buzzword for informed medical advice by telephone.
        Imagine this scenario. You live alone, half an hour by mountain roads from the nearest regional hospital. In the middle of the night, ten thousand jackhammers start chipping pieces off the inside of your skull.
        You\’re in no condition to drive yourself to the emergency department – and you\’d have to wait five hours to get treated anyway.
        You can\’t read the screen when you surf the Internet for information.
        You can\’t call your doctor. For self-preservation, he or she has an unlisted telephone number.
        For those people and those situations, B.C. Nurseline was created. Residents of the province can talk to a registered nurse, 24 hours a day, seven days a week – or to a professional pharmacist during night hours. There\’s a toll-free number in BC: 1-866-215-4700. (Deaf and hearing impaired persons can call 1-866-889-4700. Translation services are available in over 130 languages.)
        The Nurseline website says, “The nurse will ask for your Personal Health Number on your B.C. CareCard; you will not be denied service if you do not provide it.”

Privatization fiascos
        The B.C. government intended to turn this service over to a U.S.-owned firm, Clinidata.
        The government had previously contracted administration of the provincial Medical Services and Pharmacare Plans to another U.S.-owned company, Maximus, for $325 million, starting April 1 a year ago. Maximus was repeatedly fined for failing to meet its contracted performance standards, although both the company and the government say it has now overcome those deficiencies.
        On the surface, at least, Clinidata seemed like a logical choice. It operates four Ontario telehealth centres – “telehealth” is another of those buzzwords — based in Toronto, London, Sudbury, and North Bay, and two Atlantic call centers in Moncton and Bathurst, New Brunswick. It claims to serve over 14 million people and handle more than 1.8 million calls annually.
        But, like Maximus, Clinidata\’s performance fell short of its goals. The Ottawa Citizen obtained documents through access to information legislation. During some periods, according to the Citizen, the average waiting time for callbacks from a nurse reached 28 minutes. Some callers, including mothers frantic with sick children, were left hanging much longer.
        "Callers to the 1-866 number are supposed to be transferred from the system\’s automated attendant to a live person within 20 seconds," the newspaper said.
        At peak periods, the Citizen reported, Clinidata “met that goal for just 40 per cent of callers. Some callers waited as long as five minutes before being told by a \’patient assistant representative\’ [another buzz phrase, meaning non-medical staff trained to handle calls] that a registered nurse would phone them back later."

Ripping off subsidies and leaving
        Even more seriously, Clinidata\’s parent company, Sykes Enterprises, has been accused of accepting government subsidies and later exporting the jobs to India, the Philippines, and El Salvador.
        The Lexington Herald-Leader newspaper reported that Kentucky had paid Sykes more than $7 million to open two telehealth centres. Within five years, the company had closed both centres, eliminated 1000 jobs, and moved the jobs to El Salvador.
        Tieleman quoted Hattie Bacon, a former Sykes employee: “Sykes screwed this area. They got what they could get, and left.”
        Why did the B.C. government cancel the deal with Clinidata? They aren\’t saying.
        “I don\’t know why the deal fell through,” the B.C. Health Coalition\’s Alice Edge told Tieleman. “My optimism is that the government has learned a lesson.”
        I\’m less optimistic. To admit that privatization is not necessarily better than public ownership would require such a massive ideological turnaround that Premier Gordon Campbell would have to start wearing his glasses on the back of his head.

Forget those universal solutions
        Don\’t get me wrong – I don\’t advocate public ownership as a panacea for everything. The United Kingdom destroyed the British auto industry by creating British Leyland out of a host of eccentric but inspired car makers.
        But going the other direction is no universal solution either. Turning British Rail over to a host of private companies led to chaos, not efficiency.
        Tommy Douglas, (the “father” of medicare in Canada, well on his way to being canonized by the CBC), reminded us years ago of a simple formula – you cannot reduce the costs of health by adding a profit for investors.
        Privatization can reduce costs only by lowering salaries, hiring less qualified workers, sacrificing the quality of service, or cutting corners. I consider all four options unacceptable.
        I\’ve seen little evidence that private ownership results in either reduced bureaucracy or improved efficiency. In my experience, systems and procedures increase with the size of the corporate body, regardless of who owns it. Private ownership gives an impression of greater efficiency mainly because many firms are smaller operations; essential knowledge can be stored in a few heads rather than systematized.
        It should be obvious that the greatest efficiencies come when people are sufficiently passionate about a cause to commit themselves to it whole-heartedly.
        I cannot see how an international corporation will be passionate about health care in a different country. Nor are call centre operators in the Philippines or India – no matter how well trained – likely to care passionately about sick and worried individuals half way around the world.
        I don\’t think that turning Nurseline over to B.C.\’s Emergency Health Services Commission means that Gordon Campbell\’s government has changed its mindset. But I hope it means that their ideological blinders are now focussed a little less narrowly.
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Copyright © 2006 by Jim Taylor. Non-profit use in congregations and study groups permitted; all other rights reserved.
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