Tuesday, November 06, 2012

NEHTA Provides An Annual Report For 2011-2012. Some Interesting Things To Be Found Within.

NEHTA released its Annual Report for the last financial year on Monday.
It can be downloaded from this link:
The document is rather backward looking but there are a few gems - despite all the puffery and claims to have done stuff which as far as I can recall much of which happened earlier ( I could be wrong however).
First off in the year earlier (2010-11) we were told there was the following.
Total permanent staff as at 30 June 2011 = 257 (Full time equivalent)
This year a search for ‘staff’ does not tell you a thing!
Second we read this:

“Indemnities given and insurance premiums paid to auditors and officers

During the year, NEHTA paid a premium to insure officers of the Group. The officers of the Group covered by the insurance policy include all directors. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in connection with such
proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to cause detriment to the Group.
Details of the premium paid in respect of the insurance policies are not disclosed as such disclosure is prohibited under the terms of the insurance contract.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any current or former officer or auditor of the Group against a liability incurred as such by an officer or auditor.”
I wonder what this is all about -when it was not needed for the first five years. IBM suing or maybe some unhappy former employee? - Any other suggestions to the comments section please.
Third we read - open mouthed - the following.

“Events After the Balance Sheet Date

On 1 July 2012 the key components of DOHA’s Personally Controlled E-Health Record (PCEHR) programme were successfully delivered.
On 4 July 2012, NEHTA entered into discussions with IBM regarding termination of the Design & Build Contract held between NEHTA and IBM, and the Operate Contract held between IBM and E-Health Authentication Services Pty Limited, that pertained to the National Authentication Services for Health (NASH) project. The parties are currently engaged in confidential and without prejudice discussions regarding that matter. At this stage, the directors do not expect the resolution of this matter to have any significant impact on the Company’s stated financial position as set out in the financial statements read with the associated explanatory notes.”
I will leave others to comment on all this.
Fourth we read (Page 36) that directors Alice Burchill (Tas), Anthony O’Connell (Qld) and Kim Snowball (WA)  are usually too busy to attend the bi-monthly meetings of the Board.
One wonders just what is going on with that lack of interest:
On Page 34 we get clarification as to what NEHTA thinks it is doing.

“Principal Activities

The primary purpose of NEHTA is to support the national agenda for eHealth by leading the uptake of eHealth systems of national significance and to coordinate the progression and accelerate the adoption of eHealth by delivering urgently needed integration infrastructure and standards for health information.
This year NEHTA also managed the delivery of key components of the Department of Health and Ageing’s Personally Controlled E-Health Record (eHealth Record) system.
There have been no significant changes to these activities during the year.

NEHTA’s short term objectives are:

In the year ahead NEHTA, in collaboration with consumers, healthcare provider organisations, industry and government, will continue to drive the national adoption and uptake of eHealth.
In particular, building on the progress achieved to date with the 12 eHealth sites NEHTA will continue to focus on driving take-up and transitioning the sites to national adoption.
NEHTA will also further enable the improved continuity and coordination of care; medications management; and the use of diagnostic information to enhance specifications and standards development.

NEHTA’s long term objectives are:

Over the next two years, NEHTA’s effort will continue around the ten year plan.
The forward looking work programme focuses on national eHealth coordination and adoption.
Engagement, Change and Adoption, Implementation and Communication are key to the success of stakeholder take-up. The aim of this effort is to meet the national objectives for stakeholder adoption of NEHTA foundations and clinical solutions as quickly as possible.
NEHTA recognises that as it accelerates adoption and implementation activity, refinements and enhancements to the foundations and products may be required to keep pace with an evolving marketplace and address specific industry and community expectations.
For the long term, NEHTA will:
·         Continue to develop and rollout the national infrastructure and adoption support required for eHealth in Australia, as mandated and funded by the Council of Australian Governments (COAG);
·         Support the health sector’s transition to the effective use of eHealth; and
·         Develop specifications and standards for other conforming health sector participants to connect to the national eHealth records system.”
I am so glad all that is clear.
Next we discover that the top 12 execs at NEHTA are paid a total of $3.5million.
And last we note - in the notes to the accounts:

Note 24: Controlled Entities

During the year the NEHTA established a wholly owned subsidiary called E-Health Authentication Services Pty Ltd (EHAS). EHAS acts as the Certification Authority of the NASH in accordance with Gatekeeper PKI Core Obligations Policy. EHAS’s primary purpose is to provide, manage, maintain and enhance the infrastructure, software and systems required to support connectivity and interoperability of electronic health information systems across Australia.”
All just worth knowing about! Enjoy reading the glossy doco!


Anonymous said...

"Indemnities given and insurance premiums paid to auditors and officers"

These have been put in place to protect the senior managment team from litigation stemming from the known culture of bullying and intimidation within the business. It is no surprise, considering how the execs and HR continue to treat staff who raise grievances.

Anonymous said...

What a load of rubbish - What a load of rubbish - What a load of rubbish

I suspect the honourable members from WA, TAS and QLD know this all too well and are making active and overt attempts to distance themselves from this steaming pile of rubbish, noted by their conspicuous absences.

Any Directors, Officers and employees associated with this travesty placed upon Australian Taxpayers should be justifiably ashamed. A deep, corrosive sense of shame they should feel if they have the slightest modicum of conscience to speak of.

Seven years, $603M in tax payer funded revenue wasted by NEHTA and tragically still counting.

If the Coalition get back in at the next election, the only conscionable action they may take is to drown this NEHTA puppy they foolishly gave birth to! Senator Boyce: please, please, please do the honours and terminate this abominable QANGO.

What a load of rubbish - What a load of rubbish - What a load of rubbish

2005-06 - $19,134,901 Revenue; Contractors/Consultants spend: $3,526,094 (Ian Reinecke CEO)
2006-07 - $24,603,614 Revenue; Contractors/Consultants spend: $3,613,974
2007-08 - $38,715,080 Revenue; Consultants: $2,293,259
2008-09 - $64,691,574 Revenue; Consultants: $26,148,157 (Peter Fleming Appointed CEO 29-Sep-08 :: Consultants Cheer!)
2009-10 - $95,635,311 Revenue; Consultants: $43,477,391
2010-11 - $122,392,640 Revenue; Consultants: $33,070,824
2011-12 - $237,355,932 Revenue; Consultants: $58,700,624

Total Revenue 2005-12 (taxpayer funded): $ 602,529,052
Total Consultants Spend 2005-12 (larceny): $ 170,830,323

Total Benefits/Value realised to-date: $???,???

Will someone with representational authority for Australia’s Taxpayers please stop feeding this beast at an exponential rate and cut-off its parasitic consultants in the process?

Dr Ian Colclough said...

NEHTAs Audited Financial Statements for the year ending 30 June 2012 are quite informative.

The essential numbers are:
1. Revenue derived from Member Contributions [Refer Note 2] increased 94%
[from $122M to $237M being an increase of $115M]

2. By comparison employee benefits expenses including contractors and consultants increased 65%
[from $73M to $121M being an increase of $48M]

3. There being no income tax for the entity the Operating Surplus increased 184%
[from $32M to $91M being an increase of $59M]

4. Cash & cash equivalents increased 302%
[from $44M to $177M being an increase of $133M]

5. Retained Earnings [equating to Total Equity] increased 162%
[from $56M to $147M being an increase of $91M]

In Notes to the Financial Statements Note 1 k states - Revenue from Member contributions is recognized when received or receivable.

This means that monies from Members Contributions which has not yet been received but is expected to be received at some future date (ie. receivable) can be shown as revenue.

More importantly it is not clear from the Financial Statements:
[a] how much of the Revenue derived from Member Contributions is classified as 'receivable'?

[b] what sum of money is owing by each Member?

[c] which Members have guaranteed to pay their contribution and on what date it will be paid?

The Table in Note 3 in the Financial Statements referrs to the [Operating Deficit]:
The Operating Deficit increased 215%
[from ($9.1M) to ($28.7M) being an increase of $19.6M]

The Table in Note 7 shows a financially well resourced entity:
Total Cash and Cash Equivalents increased 302%
[from $44M to $177M being an increase of $133M]

$73.8 M Cash at Bank and on hand
$103.8M Short-term bank deposits
Total: $107.7 M

Dr David More MB PhD FACHI said...

To ANON 11/06/2012 06:28:00 PM

One really has to wonder just why this huge change in consultant spend and just who was driving it - and for exactly what reason?

The Annual Report(s) certainly do not make the reasons clear.


Anonymous said...

Yes David, agreed.

Sounds like a great question someone at Senates Estimates should ask repeatedly and consistently, but they suspiciously don't.

Arguably we have what is blatantly observed to be an "inside job", when the senior management are consultants on sabbatical and board-members regularly traverse through the revolving doors of Big Consulting, self-interest through perverse incentives wins, and Australia's taxpayers and patients lose out.

This charade is amusingly played out in front of everyone while accountability is absent in the extreme and our governors self-interestedly asleep at the wheel.

Anonymous said...

I am reminded by this oldie but goodie!

Nehta's developed a watch.

Its antimagnetic, shock resistant, waterproof to 100 m, jewel encrusted,
gold plated and costs $300m.

It has yet to tell the time, but their best people are working on it.

Earl Hose said...

Reflecting on Rhonda Jolly's Research Paper (The e health revolution—easier said than done)
A successful e health system must take into account all perspectives, concerns and issues for it to be supported and engaged with at all levels. Denmark provides an excellent example of how cooperation can deliver e-health outcomes that are satisfactory to all stakeholders. In Denmark, government, the health professions and the public have all worked together, with the same agenda and the same objectives over a considerable period—but Australia is not Denmark. The federal system alone makes any health reform difficult; one as radical as e health is particularly challenging. Critically, in the Australian case, the fundamental cooperative and collaborative element that has helped to make the Danish e health experience a success is often frustrated.
Quietly humming "I-B-M" and waiting for a hospital pass.

Anonymous said...

11/06/2012 09:41:00 PM Dr Ian Colclough noted that - monies from Members Contributions which has not yet been received but is expected to be received at some future date (ie. receivable) can be shown as revenue.

With both the State and Federal Governments slashing expenditures it would not be difficult to imagine the States withdrawing funding for NEHTA on the grounds it has delivered nothing of value to a State's health system and the way things are heading it doesn't look as though it ever will. Surely it is important that NEHTA make it known what funding it has actually received (not just been promised) from the States!!.

$28.7M Operating Deficit is a real concern if the money promised by the States does not eventuate.

Anonymous said...

"It has yet to tell the time, but their best people are working on it."

Lets hope not! Seems they asked for something to tell the time, it looks like their professionalism allowed them to be convinced by the generic multinational consultants that delivered a knock-off mechanism at a Rolex price. Meanwhile all the real watchmakers looked on in disbelief!

Their contractual skill has evidently let the supplier off the hook delivering nothing that is fit for purpose at a ridiculous amount of taxpayer dollars.

There are some real questions to be asked here regarding:

1. Who recommended to pay the price of this system given what has been delivered?

2. Why is the taxpayer still paying $47 million in maintenance every 2 years for a system with little content or use?

In six weeks time we will have had six months operation with a cost of $12 million in support and maintenance alone. Given that all the evidence points to there being little or no real usefulness or clinical records in the system it must be a hugely embarrassing number for someone. I wonder what the number of clinical records in the system is?

Hey, but at a million dollars a day, the watch doesn't need to tell the correct time, it's clear from the evidence to date that it is now TIME FOR THEM TO GO!