BHB cuts short multi-million dollar Kurron contract

Bermuda Hospitals Board has cut short its multi-million dollar five-year contract with Kurron Shares Inc by 18 months to save money, it announced tonight.

The publicly-funded quango revealed the news in a statement released shortly after Shadow Health Minister Louise Jackson told the House of Assembly the amount being spent on health consultants was “absolutely obscene”.

Mrs Jackson lambasted Government for spending “millions of dollars” of taxpayers' cash on overseas experts during an hour-long response to the proposed National Health Plan.

Referring to Kurron Shares, she told MPs: “I understand that that has now been closed down. It cost this country $13.5 million over five years.”

The Opposition MP said the company brought workers here who were earning “$700,000 a year, $21,000 a month” and receiving 25 and 15 percent bonuses.

Health Minister Zane DeSilva told her: “That's incorrect.”

Mrs Jackson said: “I'm sorry, but I do know this to be a fact.”

She said previous parliamentary questions on the salaries and bonuses had gone unanswered but she would ask again “and you will answer them this time”.

She added: “The money spent on consultants is absolutely obscene. If we are trying to cut costs, then this is totally ridiculous.”

In 2007, medical consultants Kurron Shares of America Inc won a five-year, $15 million contract to help BHB develop a long-term healthcare strategy for the Island.

BHB said in its statement tonight it was reviewing all consultant contracts as part of a budget drive.

“Contracts impacted include the management support contract with Kurron Shares Inc, which is being terminated a year-and-a half-early, and the physician support contract with Greeley, which will not be renewed in 2011,” said the statement.

“A number of other smaller contracts have either been terminated, not renewed or reduced. In total, net savings per annum are expected to be in the order of $4 million.”

A year ago, Government answers to parliamentary questions from Mrs Jackson revealed that the Ministry of Health spent approximately $19.4 million on consultants between April 1, 2008 and January 31, 2010.

The bulk of the consultants were used by BHB.

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Published Feb 11, 2011 at 7:39 pm (Updated Feb 11, 2011 at 7:46 pm)

BHB cuts short multi-million dollar Kurron contract

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