UHWI spends US$186,600 on consultants but no approved strategy plan to show - Auditor General

The University Hospital of the West Indies (UHWI) paid US$186,600 to two consultants for strategic and operational reviews but failed to provide any approved strategic plans to show for the expenditure, the Auditor General’s Department has revealed.

In a report released Tuesday, the department said UHWI also “failed to provide the procurement documents (bid documents, evaluation reports, procurement committee recommendations and CEO’s approval),”.

It said this prevented auditors from determining whether the engagements followed “transparent or competitive procurement procedures, aimed at ensuring fairness and value for money.”

Auditors identified two consultancy contracts, valued at a combined US$279,450, covering 2018–2025, the period audited.

The first contract, dated July 4, 2022, and valued at US$93,750, required a strategic review and development of a strategic and transformation plan. Documentation confirming completion of all six deliverables and full payment was provided, “indicating that the UHWI acknowledged satisfaction and completion with all elements of the consultancy services,” the report said.

However, the second contract, signed September 29, 2024, and valued at US$185,700, to conduct an operations review and develop a turnaround plan, raised serious concerns.

While UHWI’s records reflected payments totalling US$92,850, the Auditor General reported that “UHWI did not provide the deliverables to support these payments.” Required outputs—including a benchmark analysis, operations review, turnaround plan, and presentation pack—were listed as “NP – Not Provided.”

The report added that, given “the absence of procurement records, strategic and operational plans,” auditors were “not assured that the strategic recommendations and the transformation plan from the first strategic review contract were approved by UHWI’s Board of Directors and implemented, making it unclear whether value for money was achieved.”

Auditors also said they could not determine “what decision was taken by the board of directors to justify entering a second strategic review contract of a similar nature months later.”

In its written response, UHWI acknowledged weaknesses in governance and documentation. The hospital said the first consultancy “was presented to the UHWI Executive Team and select Board members in Q4 2022. However, formal board ratification and implementation tracking were not documented at the time.”

Hospital management said the second engagement was intended to provide “a focused operational turnaround strategy,” but conceded that “the rationale and board endorsement for this second engagement were not formally recorded.”

“We found no evidence that the contents of the deliverables under the two consultancies were adopted by UHWI to aid in strategic decisions, due to the absence of the required strategic plans. Consequently, we were not certain how these consultancy services added value to inform planning by the UHWI board of directors and management,” the auditors concluded.

The Auditor General’s report has exposed systemic weaknesses at the University Hospital of the West Indies, the principal teaching facility in the region.

It has revealed "deficiencies in UHWI’s governance, procurement, and contract management processes". It pointed to missing documentation for 51 contracts valued at $521 million and misuse of the hospital’s tax-exempt status to import items for private companies, among other issues.

"If not addressed, these weaknesses could increase the risk of corruption and undermine UHWI’s ability to deliver quality healthcare services," the audit report said.

The Christopher Tufton-led health ministry has announced a committee to review governance and management at the hospital.

The hospital's current board is chaired by business executive Patrick Hylton, who was appointed in December 2023.

Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com