Minister says Health PEI board wanted to close beds, lay off staff

P.E.I.'s health minister said a cost-cutting plan proposed by Health PEI would have shut down hospital beds and led to staff layoffs, but he had no interest in going down that path.

On Thursday, minister Robert Mitchell faced questions for a second straight dayover allegations of political interferenceby him and his government with the provincial health authority .

All 11 members of Health PEI's board resigned Tuesday, with former chair Alex MacBeath attributing the decision to new legislation which would put more power over administration of the agency in the hands of government and the minister.

Mitchell told the house he was "deeply disappointed in the actions of the entire board. And even more disappointing, the actions of the former board chair as he talked to media outlets in Charlottetown."

MacBeath told CBC News that government would not approve a new operational plan which he said would have eliminated the agency's deficit within three years.

That is not a path that I, as minister, would have any interest in moving down. Health Minister Robert Mitchell

In the house Thursday, Mitchell chastised the board for cost overruns between $20 and $24 million, but also explained why he wouldn't approve the board's plan to reduce costs.

"There was a primary focus on getting sick Islanders out of the hospital beds three days early, closing those beds, and then laying off staff," he said. "That is not a path that I, as minister, would have any interest in moving down."

MacBeath says no intent to close beds

But MacBeath told CBC News the intent of the plan was not to close beds or lay off staff, but to reduce the number of days Islanders spend in hospital, which he said is about three days longer than the national average. Doing so, he said, would improve patient flow and reduce costs by reducing the requirement for staff overtime.

Asked about allegations from MacBeath that government would not approve the board's choice for a new CEO, Mitchell told the house that the agency in charge of recruitment told him "the across Canada search only provided one individual."

Mitchell said the agency recommended the search continue.

But MacBeath told CBC the recruitment firm, Boyden, compiled a long list of 10 applicants from an initial 40 applications, and that the board's recruitment committee interviewed three candidates before settling on one.

Board should be responsible for hiring, says Opposition

Under P.E.I.'s Health Services Act, it is up to the board of Health PEI to appoint a CEO. However, amendments to the Act tabled by government last week would givecabinet responsibility for that appointment.

Those are the same amendments over which the board members resigned.

Opposition leader James Aylward said the job of hiring a CEO should remain with the board.

"I clearly am a firm believer that we need to ensure politics is not within the healthcare system," he said. "The bill has given more power back to the minister. Obviously there's some major disagreements and a lack of confidence in this minister and in the government if we see an entire board walking away."