Strategic Thoughts

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March 22, 2006

Missing Report in the PharmaCare Audit

"Overall, I concluded that progress toward cost-effective drug use and a sustainable PharmaCare program is being compromised by insufficient management attention. Although the program has been a leader in implementing a number of initiatives, such as the PharmaNet system, cost containment and drug utilization strategies, and the Therapeutics Initiative, progress to expand these useful initiatives to maximize their benefit, has been slow. Expansion of these and other initiatives can move PharmaCare further towards achieving its strategic objectives. The key factors underlying this slow progress are the
lack of sufficient human resources, clear direction, appropriate performance measures and key accountabilities."
Wayne Strelioff, FCA, Auditor General, Managing Pharmacare: Slow Progress Toward Cost-Effective Drug Use and a Sustainable Program Report 8 - March 2006, p. 2.

"In summary, we profoundly disagree with the Auditor General's overall conclusion that little progress has been made by PharmaCare since the last audit. We have described the work PharmaCare has undertaken internally to restructure its benefit programs and make them more equitable and sustainable. We have also described the leadership British Columbia has taken on the national front to promote collaboration and cooperation between jurisdictions, in order to ensure all Canadians have access to safe and effective prescription drug coverage."
Response from the Ministry, p. 71.

It is hard to find another example where such differences exist between a Ministry and the Auditor General. A major point of departure between the Campbell government and the Auditor General may be on the issue of how to control costs while receiving value for money. The 2006 Report states: "Costs of PharmaCare can be managed in two ways - by managing the program effectively and by helping the population become healthier and less reliant on medications." Compare that to the Ministry's response which talks about restructuring benefit programs, a euphemism for shifting costs from the government onto those who are sick enough to need drugs.

What is the public to think when the government disagrees with the Auditor General's observation that: "My conclusion is troubling because it echoes of an earlier conclusion my office reached on the PharmaCare program. The conclusion and key findings in our 1998/1999: Report 2 Managing the Cost of Drug Therapies and Fostering Appropriate Drug Use, available at www.bcauditor.com, bear a striking similarity to those in this report. …Although, over the last six years, I have noted ministry progress in dealing with some of these issues, the issues themselves have become more compelling and PharmaCare's momentum to move on them constrained by regular turnover of PharmaCare's top management and chronic understaffing." (emphasis added)

The overall conclusion in the 1998/99 report by then Auditor General George L. Morfitt said: "We concluded that the Ministry of Health and Ministry Responsible for Seniors is adequately managing the cost of drug therapies, although it could do more to foster appropriate drug use." That report was mild compared to the 2006 report.

The 2006 Report noted (p. 64) that according to the ministry's 2003/04 Annual Report "…any potential negative impacts of Fair PharmaCare are being monitored, and that preliminary evaluations indicate that drug use has not decreased in either the senior or non-senior groups since implementation. A partnership with Harvard University to carry out a long-term evaluation of Fair PharmaCare until 2009 was also reported." The Auditor did not mention reviewing the evaluations; his report merely mentioned claims contained in the Ministry's Annual Report.

Fair PharmaCare was implemented in May 2003. In debate leading up to its implementation, then Minister of Health Services Colin Hansen told the Legislature on October 31, 2002 that:: "We have already put in place a contract with officials at the University of British Columbia to make sure that this transition is properly monitored using PharmaNet data, to make sure that no senior and no British Columbian is negatively impacted in terms of their ability - based on their ability to pay - to get the medications that they need." I submitted a freedom of information request for that contract and on August 5, 2003, I received copies of emails that amended a standing agreement between the Centre for Health Services and Policy Research (CHSPR) at UBC and the Ministry of Health, which allegedly evidenced Hansen's claim that a contract was in place with officials at UBC to monitor the transition to Fair Pharmacare. In light of the Auditor General's Report I am now submitting a freedom of information request for the report that should have been the product of the contract Hansen referenced in 2002. If it exists, it would appear that it was missed by both the Office of the Auditor General and by the Ministry in their response when they referenced a four page bibliography of evaluations with respect to BC's Pharmacare program. Was Hansen wrong when he informed the Legislature in 2002 or did the CHSPR report get buried?

Postscript: Click here for a copy of the letter faxed to the Auditor General with a copy of this article and a question about his report.

 

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