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Renfrew – The investigation into financial impropriety at Renfrew Victoria Hospital (RVH) has brought on positive changes to avoid future issues, including reunifying Renfrew Health (RH) with all hospital funds returned to RVH and assets to be transferred there, installing a new senior management team and new CEO, bringing in a “whistleblower” system and establishing a new structured shared service agreement with St. Francis Memorial Hospital (SFMH) in Barry’s Bay.
“I want to recognize the important role that RVH plays in delivering excellent health care and services to the Renfrew community,” Supervisor Altaf Stationwala stated in his final report. “The team at RVH – from front line to leadership to board – all play a critical role in ensuring this standard continues to be upheld and that care continues to advance to meet the needs of communities into the future. Through the work we’ve undertaken together over the past nine months, RVH has set itself on a strong path forward and will continue to be a critical resource in ensuring health needs are met and that excellence in patient care remains the highest priority.”
In his report, he acknowledged RVH “is a remarkable group of staff and physicians who is committed to delivering excellent patient care and ensuring needs of patients and community are met. Front line leadership and the new senior management team are strong leaders who have played a significant role in fostering and sustaining this commitment to excellence and will continue to play a critical role in advancing the organization on the path forward.”
Changes not only impact RVH but a structured shared service agreement is being developed between RVH and SFMH to provide transparent disclosure on responsibilities and compensation of the integrated management team.
Three financial recommendations are being implemented. The first is reunification of RH assets to RVH and the dissolution of RH. This is ongoing, with RH under the control of RVH. The asset transfer and dissolution are underway presently.
The second recommendation was for new auditors “that will uphold best practices in financial oversight.” This has been implemented with KPMG appointed as auditor last fall.
The third financial recommendation was the complete alignment between RVH and SFMH to provide one unified compensation and transparency for cross-appointed leadership roles. According to the report, this is ongoing with a structured shared service agreement being developed between RVH and SFMH. RVH will be the paymaster for this integrated contract.
Operations recommendations include instituting a Whistleblower Policy supported by the engagement of a third-party organization to assist with recording, triaging and anonymity. This is in place with ClearView Connects. The report noted there had been “concerns with respect to a culture of transparency during the tenure of former longstanding CEO. For example, despite awareness of questionable financial practices staff felt unable to raise concerns.”
Leadership recommendations include a completely new senior management team.
“The current team unanimously agrees that previous activities were offside and has been very supportive of working with the supervisor to investigate and resolve concerns,” Mr. Stationwala stated. “This team has also been instrumental in building and executing the turnaround pertaining to financial, leadership and governance dimensions to foster a high functioning and accountable organization. A new CEO has also been hired, which is expected to close the gaps created by previous members in this position and set the stage for a brighter future for the organization.”
In Governance, actions have been taken to address gaps in governance practices, policies and procedures. Education sessions have been held with the board including looking at key statutes that apply to Ontario public hospital governance and the roles of hospital directors, key practices, roles and relationships and the hospital-foundation relationship.
Legal and governance documentation has been updated and approved by the RVH board. As well, there has been a complete restructuring of the RVH Board with all new directors since the tenure of the former longstanding CEO.
In conclusion, Mr. Stationwala noted, “Above all, this case has served as the most valuable learning for the RVH Board on the importance of their fiduciary role in ensuring strong practices are upheld to protect public funds for the betterment of the community. This case also serves as an important reminder to all governors of the need to understand their fiduciary duties, ensure appropriate due diligence, ask questions when things seem offside, and ultimately hold each other accountable to fulfilling this mandate.”
Although SFMH was never part of the original investigation into the relationship of RVH and RH, the Barry’s Bay hospital was also part of the changes due to sharing senior management roles between RVH and SFMH.
“The governance gaps at RVH also exist at SFMH, which was under the same administrative leadership. The SFMH board chair has committed to adopting the BLG governance recommendations and materials at SFMH,” the report noted.
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