A scathing report on eHealth Ontario, an electronic health records initiative in Ontario, Canada, concludes that the project has wasted $1 billion in taxpayer money. The scandal has cost the Minister of Health, David Caplan, his job.

(CBC) The idea behind eHealth is to create electronic health records for Ontario, something the auditor says could save $6 billion if implemented in every province and territory.

Instead, Ontario "is near the back of the pack" when it comes to electronic health records, having wasted millions on underused computer systems and untendered contracts.

The report is damning in its criticism of the way governments have allowed eHealth and its predecessor, Smart Systems for Health, to let spending go out of control with few safeguards to protect tax dollars.

McCarter says the province was "lacking in strategic direction and relying too heavily on external consultations."

At one point, the auditor writes, the eHealth program branch had "fewer than 30 full-time employees but was engaging more than 300 consultants."

McCarter said charges that favouritism was shown toward certain companies "without giving other firms a chance to compete were largely true."

At the heart of the report are four recommendations aimed at putting an end to scandals like the one that enveloped the eHealth agency:

  • Develop a strategic plan for implementation of electronic health records.
  • Improve oversight by board of directors.
  • Rely less on outside consultants.
  • Ensure procurement policies are followed.

Read the complete article eHealth scandal a $1B waste.