Medavie CEO shoots down profit motive claims

Firm has no outside shareholders and no-one is paid dividends, says top executive

Medavie CEO shoots down profit motive claims

Non-Profits & Charities

By Paolo Taruc

Brunswick announced earlier this month that it will turn over the management of its extramural nursing and Tele-Care programs to private, non-profit health services provider Medavie.

Now, amid a barrage of criticism, Medavie CEO Bernard Lord has come to the defense of his firm and shot down concerns that it entered into the agreement to make a profit.

“The non-for-profit relates primarily to the fact there are no outside shareholders,” said Lord as reported by CBC News. “No-one is paid dividends. That structure does not exist.”

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According to the provincial government, the move was made to ensure better co-ordination and collaboration among healthcare providers through a team approach.

“We need to ensure that New Brunswickers receive the appropriate care, at the appropriate time and place, by the appropriate provider,” said Health Minister Victor Boudreau.

However, critics of the initiative believe that privatization will remove public accountability of the healthcare system. 

“Basically, who will we question? We’ll have to question Medavie, and that is certainly not the road we want to go,” said Cecile Cassista, executive director of the Coalition for Seniors and Nursing Home Residents’ Rights, as quoted by CBC News.

Representatives of L’association francophone des aînés du Nouveau-Brunswick and the Coalition for Seniors and Nursing Home Residents’ Rights have also said the move goes directly against the concept of public administration, and represents a “dismantling” of the province’s health system.

According to CBC, Medavie has run provincial ambulance services in Prince Edward Island since 2006, and New Brunswick since 2007. According to the report, there have been no private investors in the organization and no profits paid out.

“No-one put up capital,” said Lord. “No-one owns the capital.”


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The Co-operators enters joint venture with healthcare insurer

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