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The province announced on Thursday that it has signed a contract with Foundever to provide virtual health-care services in New Brunswick.
The contract is a two-year term with an option to renew and an annual budget of $12.9 million. It’s “based on 250,000 services per year and is only paid as services are delivered,” the release said.
Last Tuesday, the province said it would be extending eVisitNB’s contract, the current service provider, by 90 days past March 31.
The extension is built into eVisitNB’s four-year contract.
Sean Hatchard, a spokesperson for the Department of Health, said in an emailed statement that in the past fiscal year, up until March 15, eVisitNB has seen around 233,000 visits for a cost of just over $11 million.
Hatchard said the two contracts are not identical and “there will be different services included in the new provider’s contract.”
eVisitNB’s website says they’ve performed more than one million virtual care consultations since 2020. (eVisitNB)
Originally, Foundever was supposed to take over the service on April 1. The news release said “the transition to the new vendor will begin in June.”
Last week, Health Minister John Dornan said the new provider was “not ready to take over the service” so the province opted for the extension.
Dornan said there was “no delay” in the transition.
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Foundever will take over after eVisitNB completes its four-year contract, which was extended in late March by 90 days.
He said at the time the extension would help bridge the transition from Woodstock-based eVisitNB to a new service provider, which was close to signing a contract.
“We have identified a preferred provider. We have been talking with them and we’re very close to signing a contract,” said Dornan.
Progressive Conservative health critic Bill Hogan has shared concerns with the province’s decision to move on from eVisitNB, which operates in his riding.
“[eVisitNB is a] New Brunswick company created in New Brunswick by New Brunswick investors and I don’t know why we wouldn’t put New Brunswick first,” said Hogan.
Hogan’s also concerned with the financial health of Foundever, questioning their ability to make payments and to stay in business.
“Who knows if [Foundever] is going to be around in 90 days? While eVisitNB continues to provide the service.”
Hogan is referring to a S&P Global analysis in December which downgraded the company’s credit rating from a B-minus to CCC, which suggests “default is likely within the next 12 months,” according to the outlook.
“We now think the company’s earnings growth and cash generation profile are insufficient to support Foundever’s capital structure,” S&P said, which provides financial analysis.
PC MLA Bill Hogan has been critical of the province’s decision to move away from Woostock-based eVisitNB. (Ed Hunter/CBC)
Despite financial uncertainty, the province has said Foundever, a Luxembourg-based company, had a stronger proposal for the services.
The news release also shared the province’s request for proposals criteria.
The government sought a seven-day-a-week, bilingual service with nurse practitioners licensed in New Brunswick and patient information stored in Canada.
The province also wanted the new provider to be able to integrate with its other systems like electronic health, community health systems, NB Health Link, 811 Telecare as well as lab and specialist referral systems.
Foundever already operates New Brunswick’s 811 Telecare program and has 150 employees in the province.