16 fraud charges laid in B.C. e-health probe

A former top B.C. bureaucrat is among three people facing corruption charges in connection with the Liberal government's troubled project to computerize all health records.

Ron Danderfer, a former assistant deputy health minister, was in charge of the initiative until he was removed three years ago. He has been charged with influence peddling, breach of trust and fraud.

The 19-count indictment announced Thursday also charges Dr. Jonathan Burns, a consultant for the ministry, and James Taylor, manager of network services for the Fraser Health Authority, with fraud and breach of trust for their roles in the alleged scheme. They are accused of attempting to benefit personally from the lucrative project.

Their first court appearance is scheduled for April 7 in Victoria.

The charges are being handled by special prosecutor John Waddell because of the government connection. They stem from a lengthy RCMP investigation and follow an auditor general's report critical of how the government set up the program.

Health Minister Kevin Falcon said Thursday he didn't want to comment on the case now that charges have been laid but last fall, he called the allegations "very damaging and concerning."

Falcon defended the e-health program Thursday.

"It got off to a very poor start but the auditor general did confirm that he feels good that things appear to be back on track," the minister said in Victoria.

"He will continue to monitor the progress we're making in the ministry and we will continue to work hard to make sure we keep it on track."

But Opposition NDP health critic Adrian Dix said the problems with e-health go deeper than these charges.

"Regardless of the criminal issues ... there is a culture of irresponsibility," he said. "There is a culture of non-accountability on the part of the government when it comes to e-health."

The charges arise out of the B.C. government's project to computerize patient health records to help streamline the delivery of services and save money.

Information contained in an RCMP search warrant a year ago alleged Danderfer offered to use his influence to help Burns' firm, WebMed Technology Inc., win a contract.

The RCMP also claimed Taylor committed fraud by allowing Burns, an Abbotsford doctor, to submit allegedly false invoices worth almost $250,000.

None of the allegations have been proven in court.

British Columbia has eight e-health projects, including those giving doctors electronic access to patient records, providing lab access online and using videoconferencing to put patients in touch with health professionals across distances.

The government estimates the cost of its e-health projects at about $200 million, although the Opposition New Democrats claim it could be more than double that.

Danderfer was removed from his position in 2007 and retired that fall after 35 years in the public service.

Burns was a major consultant on e-health. He convinced the province's health authorities to use WebMed's electronic device that helps make medical diagnosis across distances.

The warrant information alleges Burns was allowed to double-bill for his medical services to two branches of the Health Ministry with Danderfer's knowledge.

It also alleges that Danderfer accepted personal and family benefits from Burns that included allowing Burns to hire members of Danderfer's family.

Taylor has a previous conviction for defrauding the White Rock Sea Festival, for which he served two years' house arrest.

Falcon said Thursday that Taylor had been hired by the previous NDP government and that there are issues of fairness even with people who have criminal records.

"Obviously this is an issue that government corporately needs to and may take a look at but there are legal issues around that," he said. "It is not an open and shut case."

The investigation and the auditor general's report came as competing bidders for e-health contracts criticized the transparency of the tendering process.

Falcon said governments across the country that are converting to electronic health record-keeping have faced challenges.

Ontario's auditor general described that province's $1-billion initiative to create electronic health records as "lacking in strategic direction and relying too heavily on external consultants ..." The senior bureaucrat in charge was fired over the awarding of consultants' contracts.

Falcon said the B.C. government has followed Auditor General John Doyle's recommendation to report back to him every six months.

But Dix said all e-health contracts now should be reviewed.

He said government ministers seem intimidated by anything to do with information technology and have abdicated their responsibility for one of the key tools to reform health care.

"But the fact is the problems go deeper and we've now had I think successive indications ... where the government seems to not want to ask questions," he said.

"Everybody sees this as a tremendous opportunity to improve the quality of care and to prevent mistakes in health care. And the government has fumbled the ball, and they continue to fumble the ball."

Jody Bevan, president of Edmonton-based Jonoke Software Development, which lost its bid for an e-health contract, said it's good that the process is being scrutinized.

Bevan said he believes there were problems with the tendering procedure. British Columbia's request for proposals was based on the Alberta and Ontario e-health initiatives, in which Jonoke was involved.

"We indicated in our response that yes we did it and how we did it and they would score us zero on many of them," said Bevan.

"It showed us that the scoring, which was done in a very closed environment, was not done openly and fairly."