Auditor General of Newfoundland and Labrador, Denise Hanrahan, today delivered a performance audit report to the House of Assembly on the Medical Care Plan (MCP) and Dental Health Plan. Today’s report contains findings and recommendations, many similar to those identified in a 2014 audit of MCP, regarding the ineffective compliance function, information technology issues, and an overall lack of program oversight.
“I am concerned that the Department of Health and Community Services is unable to ensure public health care funds are distributed appropriately to health care providers – doctors and dentists – for the services they provide to Newfoundlanders and Labradorians. Even more concerning, the issues I’ve identified in this audit report are some of the same issues that were reported in 2014, and I have yet to receive a reasonable explanation for why these issues are outstanding more than a decade later,” commented Denise Hanrahan, Auditor General of Newfoundland and Labrador.
The audit found the department failed to make significant progress on the oversight issues identified in 2014. Further, high-risk areas, such as the failure to complete disaster recovery and business continuity plan testing, were identified; as well as the lack of processes to prevent or detect double payments with Workplace NL. In addition to the MCP IT system being old and complex, it may also not be entirely reliable, with a third of the claims processing rules we tested either serving no purpose or not working properly. The internal audit function within the department is also ineffective and underutilized.
“Aging digital infrastructure is as concerning as aging physical infrastructure,” added Auditor General Hanrahan. “The age and complexity of MCP’s systems contribute to inefficiencies, frustration for providers, and increased risks from error or fraud. Yet the internal audit function, which is meant to mitigate that risk, does not use the tools and processes available. With low productivity, procedural problems and insignificant recoveries, I question the effectiveness of the department relying on their internal audit function as an oversight measure for the MCP program.”
The full report as well as an audit overview can be found by visiting. www.ag.gov.nl.ca.
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Chrysta Collins
Office of the Auditor General
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chrystacollins@oag.nl.ca