Quebec changes its mind and saves $20 million

Jean-Nicholas Blanchet - 19 April 2017

Competitors from a company close to the Liberal Party of Quebec demanded and obtained a call for tenders.

Quebec taxpayers will save $ 20 million after the Couillard government was forced to bid for computer products that it intended to buy without competition."My goal was speed”, Health Minister Gaétan Barrette acknowledges the government's intention, announced in February 2016, to pay $ 64.5 million over-the-counter to Médiamed (acquired by Logibec in 2015).

Our Board of Inquiry then unveiled the industry's lack of invitations to tender.

We also revealed that a former director of communications of the PLQ and a former chief of staff had been linked to Logibec or Mediamed. Prime Minister Philippe Couillard also appeared in an advertorial of Médiamed before he returned to politics in 2012.
This contract, one of the most salty ever granted in computing by the ministry, is necessary for the reform towards the financing on the act in the network, announced by Mr. Barrette. In short, institutions will no longer receive amounts based on historical aggregate budgets, but rather on the basis of the volume of patients treated.

No Invitation to Tender

As a result of this contract, Quebec issued a "notice of intention" instead of a call for tenders. The notice of intent allows the government, when it considers that only one company is able to do the job, to announce that a contract will be awarded by private agreement. Competitors may break the notice and call for tenders, but to do so, they must prove that they are able to perform the job too.

Patrick Power, Managing Director, PowerHealth Solutions
Patrick Power

In this case, that is exactly what they were able to do. A call for tenders was launched and it was finally the Australian firm PowerHealth Solutions that won, ahead of Logibec. The prices have still not been made public, as the contract has not been formally awarded. Technical tests are in progress.

However, according to our information, PowerHealth's proposal is about $45 million, well below the $64.5 million that Quebec was prepared to spend. "We feel privileged to have been chosen for this fantastic project," Patrick Power said on the company's website in February.

In an interview, Minister Gaétan Barrette explained that the government had made the right decision by initially opting for a notice of intent "because there was a question of time for us by organizational interest".

Back to Taxpayers

Mr. Barrette obviously wants the savings generated by this reform to be available to taxpayers in Quebec."At that time, when we took the step, our knowledge of the market brought us there as quickly as possible and there was the surprise of the appearance of the Australian firm," he added. That the Notice of Intent process is provided for by law. He speaks of this firm as a player "who appeared from nowhere" and "nobody knew."

About PowerHealth Solutions

PowerHealth Solutions logo PowerHealth Solutions is a dynamic Australian software development company specialising in activity based costing, hospital billing and safety learning solutions for healthcare organisations. The company is a market leader in Australia and New Zealand, with international recognition in the United States, Canada, the United Kingdom, Ireland, Hong Kong and the Middle East.

ISO 9001 quality-accredited since 2001, PowerHealth Solutions specialises in large scale implementations ― at public hospitals, State Health Departments, District Health Boards, and private hospitals. Implementation staff are highly skilled and experienced, ensuring that new systems are up and running quickly for a rapid return on investment.

PowerHealth Solutions is the exclusive Datix distributor for Australia and New Zealand.

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