Failures revealed at CINICO
(CNS): In one of two reports released by the auditor general on Wednesday Alastair Swarbrick pointed to shocking failures in the management of government’s health insurance company and a plethora of weaknesses that put public money at risk. An audit report into CINICO, “Management of Overseas Medical Services”, revealed that the $30 million of public money spent each year on overseas medical care was not being properly controlled. From managers appointing case management firms without the company or board’s knowledge to a paucity of documents to show how CINICO manages overseas cases, the report reveals a catalogue of poor governance, leaving public money and the government owned company at risk of abuse.
Although Swarbrick said his office was unable to determine the amount of overspending, how much public money has been wasted, or conversely what could have been saved under better management, he was concerned that it was a significant amount. He also noted that while he did not see any evidence of direct misappropriation, given the lack of proper processes the system was vulnerable to corruption and abuse.
Speaking at a press briefing on Wednesday, he explained that the audit covered a two year period from May 2009 until April 2011 and revealed a number of significant weaknesses in the operations of CINICO. The audit pointed to the failure of CINCIO officials to attend key meetings intended to ensure the effective management of overseas cases, a lack of evidence that CINICO was ensuring the case management company was carrying out its key responsibilities to avoid overseas medical costs, and a lack of good governance practices in place.
“I found CINICO did not have sufficient management and board practices that would have ensured expenditures relating to overseas medical services were being effectively controlled,” Swarbrick said. “In several individual cases, I could not find evidence supporting decisions taken that would have ensured cost effective patient care.”
The audit identified a number of wider issues concerning good governance which created an environment of increased risk, including the absence of a strategic plan and no identified goals or performance measures. The board had not approved any kind of plan since 2005.
One of the most significant criticisms by the auditor was a management decision to engage a second case management company in contravention of the exclusive contract held by the first firm and without any authority. The auditor said this raised a number of questions which it was unable to answer as there was no documentation and Swarbrick said the former manager would not cooperate with the audit.
Despite his concerns about the failure of CINICO to manage the significant spending in the past, Swarbrick said the new management team and board had demonstrated a willingness to take action to address the report’s recommendations.
Responding to the report on Wednesday afternoon, CINICO management said it was in general agreement with the findings but with the appointment of a new CEO in December 2010 many of the auditor general’s recommendations were now being implemented. It also stated that safeguards were in place to manage medical services but it was poor record keeping that was at the heart of the problem.
“While we do recognize the areas needed for improvement, we would like to point out that … practices were in place that managed medical services rendered, however they were not documented properly … that would allow for comprehensive review,” CINICO stated.
See full statement from CINICO and the AG’s report below.
|CINICO - Final Audit Report - May 16 2012.pdf||509.96 KB|
|CINICO reponse to OAG Press Release on Overseas Medical Services May-23-12.pdf||362.55 KB|
- Work permit as Online Investor (Personal Investor)
- House for sale - Mt Pleasant WB
- \'09 Honda Fit 4sale
- New Blackberry Q10 Gold Plated and Gold Porsche Design (24 HRS BBM Chat:295941E1)
- Town - Extra Large Bedroom with XL Walk-in Closet
- ONE BEDROOM SHARING $325.00
- CINSA RElays
- Retirement plan
- Make Money Now - Easy as ever
- Stainless Steel Electric Stove & Electric Water Heater for SALE
The comments posted do not necessarily reflect the views of CNS or any individual staff member. All comments are posted subject to approval by CNS. Read more
- I think she just needs to
15 hours 45 min ago
- Ok, privateers and then
15 hours 49 min ago
- I have to say the comments
15 hours 52 min ago
- This must be a joke
15 hours 58 min ago
- How do you know she didn't?
16 hours 5 min ago
- We love porn. That is why.
16 hours 17 min ago
- You see that is how American
16 hours 19 min ago
- Thank you for the comments
16 hours 21 min ago
- Greed? One of the effects of
16 hours 22 min ago
- Except that too would be
16 hours 23 min ago