A contract of $ 600,000 with the private sector to achieve a balanced budget

News 13 July, 2017
  • Héloïse Archambault

    Wednesday, 12 July, 2017 21:56

    Wednesday, 12 July, 2017 21:56

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    A network organization of health of Montreal recently awarded a contract of $ 600,000 without tender to a private firm to help emergency to straighten out their spending by the spring.

    Last June 26, the integrated Center for academic health and social services (CIUSSS) of the Center-West-of-the-Island-of-Montreal has invoked the “emergency” to achieve a balanced budget to award a negotiated contract to the private firm of public accountants Ernst & Young in Montreal.

    Economy of$ 2 Million ?

    No public announcement has been made about this ; The Newspaper has learned by consulting the website of government grant contracts.

    The mandate, for a maximum period of one year, aims to “optimize the costs in order to achieve a balanced budget by the next fiscal year” on march 31, 2018, meets the department of communications by e-mail.

    In addition, the CIUSSS (which includes the jewish general Hospital of Montreal) pointed out that the amount of $ 600,000 is a maximum and that it could save up to $2 million.

    Specifically, Ernst & Young must focus on strategic sourcing and optimizing logistics activities.

    According to the CIUSSS, the private firm has the necessary expertise, since she had already been hired last year for a similar mandate to the jewish general Hospital.

    No interview

    This is a week that The Newspaper has requested an interview with the direction of the CIUSSS for more details surrounding this agreement and understand the magnitude of the fiscal problems.

    “No one is available to give an interview “, had written the direction of communication by e-mail last Tuesday.

    For its part, the leadership of Ernst & Young has also refused to respond to the Journal, because of confidentiality clauses.

    However, the CIUSSS has presented a budget surplus of$ 1.7 Million last year (2016-2017), according to data from the ministry of Health and social Services (MSSS).

    For 2017-2018, the CIUSSS has adopted an annual budget balanced 853 M$, including measures of recovery of$ 2 Million (procurement and logistics).

    The Newspaper has not been able to understand why the management had to hire urgently for a firm to meet its budget this year. In addition, the MSSS has not requested a budget measure specific to this CIUSSS this year.

    Deficit of$63 Million

    The financial problems of this CIUSSS do not date from yesterday. In 2014, the minister of Health, Gaétan Barrette, was appointed an attendant to help the jewish general Hospital to achieve a balanced budget.

    In may and June, the MSSS has allowed the CIUSSS borrows a total of$ 35.2 Million. As of march 31, 2016, the CIUSSS had an accumulated deficit of$63 Million.