The interface between health boards and politics is
fragile. In a flash of merely hours,
the entire Alberta Health Services Board has been dismissed, the provinces
health system thrown into disarray and the foundations of years of construction
razed with the swipe of a pen.
At issue was an even more fundamental tension. Governments have encouraged and support
health taking a more entrepreneurial and business like approach to
management. Taking the direction to
heart, the AHS built in pay incentives (aka bonuses) for senior executives
(some 99 in Alberta). The government
directed the board to not fulfil its commitment to senior staff and the board
refused.
When health boards become too strong and begin to exert
power that exceeds that of their master, the master retains the right of
execution. In destabilizing the power
structures in Alberta, government now has the opportunity to rebuild – and we
all know during the process of rebuilding, expenditures decrease, planning
comes to a screeching halt, and staff who lack of direction pursue
nothing. For a health system that was
economically spinning out of control, and those costs driven predominately by
unit delivery costs of which the vast component is compensation, this might be
a logical step.
Might be because this is a province that has in the past
made rash decisions without measuring its consequences – one of which led to
the superboard. It is also a province
where eating a cookie in a mall can get you fired. There are learnings for the whole of Canada
that we can benefit from.
- 1. Health is inextricably related to politics in Canada
- 2. Health regions (school boards, municipal governments...) sit at the pleasure of government, so while government happiness is not a performance indicator, it is an important variable to consider.
- 3. Power destabilization is a highly effective mechanism for cost control and system control
- 4. During destabilized times, opportunities exist that the intrepid public health worker can monopolize on.
- 5. During destablized times, risk is higher, but so is the potential gain. Entrepreneurs truly understand the relative value of risk and gain – so if governments truly wish to bring a business attitude to health – here is the opportunity for innovators to shine.
Good
luck to our Alberta colleagues as they enter a period of chaos.
I think the Board was right in fulfilling a contract they signed. Executive pay was to be baseline plus incentives to achieve goals, which were clearly rated/audited/scored. If the AB government didn't like the contract/reimbursement arrangement, the time to stop it was before the contracts were signed. Yes, we're in tough times economically, but what happens when we lose trust in agreements? When meeting an agreed goal is treated the same as not meeting the goal, how is that business like? Horne made a mistake I think, and the impact might not be immediately apparent, but what AHS Executive is going to sign an incentivized performance based contract now? I wouldn't.
ReplyDeleteWe are of course not privy to the contract details yet, but your point is bang on. The contracts were structured to incentivize particular deliverables with clear knowledge of the maximum achievable pay. To renege on such commitment would be a breach of contract and not fondly looked at by the courts, even if initiated by government dictum. The government may have options in legislation that could be undertaken, on this point we may yet learn whether this was driven by a desire to destablize the power, or a petty spat over 0.02% of the AHS budget
DeleteAn interesting perspective Dr. P. From SD in Alberta.
ReplyDeletehttp://susanonthesoapbox.com/2013/06/16/youre-fired-health-minister-horne-sacks-the-ahs-board/