Ontario Health Coalition

BRIEFING NOTE

Ontario Health Coalition
Notes From P3 Documents
Released By William Osler Health Centre (WOHC) Brampton
March 12, 2004

Do the documents released amount to public disclosure?

Not at all.

• The public can view the documents by making a maximum 1 - 2 hour appointment at the site of the WOHC secure facility into which the hospital administration has moved.

• To view the documents, you must sign an agreement not to copy or photograph anything. You are escorted upstairs to a secure area - no more than two people at a time.

• Many of the key documents - including everything relating to the cost and duration of the lease deal and the "Lending Direct Agreement" are not disclosed.

• The documents would stand 6 feet tall if stacked vertically. However, approx. 11 binders are "Operational Specifications". You can find out the floor plans and the painting plans, but all the financial information relating to taxpayer’s money has been deleted as are the main agreements and documents pertaining to the lease, financial arrangements, officers of the corporations and the services to be privatized.

The Royal Ottawa Hospital is still refusing to release any documents pertaining to its P3.

Items Omitted or Deleted:

• All financial information including the full cost, the annual payments to the private corporations, the borrowing rate, the profit etc.

• Information pertaining to the duration of the lease including the length, the scope of services bundled into the deal, what ends when etc.

• The complete list of services to be privatized.

• The Value for Money Report done by the province last spring/summer.

• Memos and other government documents pertaining to the deal.

• Officers of the corporations and others involved in the deals. We could find no signatures or named representatives in the documents.

• There are a raft of omissions and deletions. Some of the items not disclosed are not mentioned, some are referenced but are not there, others are listed as deleted.

• All information is protected under copyright with the hospital and private corporations owning different documents.

Key Information Disclosed:

This disclosure removes any claim that this deal is for a public hospital. This is clearly a P3 deal despite government claims to the contrary. The deal also provides for the privatization of services at an additional 7 hospitals.

It is clear from the documents released that there is little if any substantive change from the model negotiated by the Conservatives before they were thrown out of office despite government promises during the election campaign and claims to the contrary. The hospital will be designed, built and operated by the private consortium and paid for through a complex lease deal.

• The hospital will be privately financed and operated for profit. The services are still bundled into the lease -- including services vital to patient care - and paid for through the complex lending agreement over many years.(See Project Agreement, 28 August, 2003 and Project Agreement Conformed Version January 28, 2004.)

• Although we could not find any records stating the duration of the lease, the document refers to inspections that must take place in the 21st, 23rd and 25th anniversaries of the contract. Therefore, the lease contract is at least 25 years long.

• The services of the hospital will be privatized but the complete list of privatized services is deleted. (See Section 25 of the Project Agreement).

• The deal provides also for privatization of services at the Georgetown Hospital and the Etobicoke Hospital.

• The deal provides also for the WOHC to request that Project Co at any time privatize services at Trillium Health Centre (Mississauga and Queensway sites), Halton Healthcare Services Corp (including Oakville, Trafalgar and Milton Sites). (see Section 25, schedule of services to be privatized is in Binder 11 volume 3 C.2 of the Project Co. other proposals - which we could not find in the materials provided).

• The deal involves a paper shuffle in which the WOHC leases the building and site to "Project Co" (a company set up by the consortium "The Health Infrastructure Company of Canada or THICC") for $1. Then Project Co. subleases them to WOHC for $1. The real transfer of money and asset is contained in what is called the "Direct Lending Agreement" which is omitted from the documents disclosed.

• There are a myriad of private for-profit corporations involved, including five different versions of Carillion (the service privatizer), a Realty Co, a Project Co, and the consortium THICC. (Note: Carillion is a large transnational corporation based in Great Britain that has been a key proponent of health system privatization. Carillion has also been the private partner in P3 schemes in Britain that feature long waits for hospital beds, high costs, health and safety violations, accidents and injury - including death, strikes, and record profits.)

• The private corporation is allowed to build commercial ventures on the site, including not only privately owned and delivered clinical healthcare services, but ever other kind of business activity with only three specific exceptions: a casino or gaming operation; an adult or sexually themed entertainment establishment; or sale of tobacco and alcoholic products. (See Section 17).

• The deal involves an intricate maze of leases, subleases, lending agreements, contracts, service agreements, testing protocols, variation procedures, auditing and monitoring protocols, and dispute resolution and arbitration procedures - all of which engender extensive legal, accounting and monitoring costs, as well as potential liabilities - and none of which would be necessary but for the P3.

 

Ontario Health Coalition
15 Gervais Drive, Suite 305
Toronto, Ontario M3C 1Y8
www.ontariohealthcoalition.ca
phone: 416-441-2502
fax: 416-441- 4073
email:ohc@sympatico.ca

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