An investigation into Renfrew Victoria Hospital (RVH) has revealed a pattern of financial mismanagement and governance failures, despite the hospital’s consistently strong fiscal position.
The final report from a provincial supervisor appointed to investigate financial irregularities at Renfrew Victoria Hospital (RVH) and Renfrew Health was released Thursday. The Ontario Ministry of Health announced last June that Altaf Stationwala would join the hospital to investigate the concerns, which centred on Renfrew Health, an entity meant to support RVH operations.
At the centre of the findings is a long-serving former CEO who received nearly $3 million in compensation through various undisclosed mechanisms. This included a $1.3 million contribution to a Supplementary Executive Retirement Plan, despite also being enrolled in the Healthcare of Ontario Pension Plan, more than $170,000 in corporate credit card charges incurred over six years (with only nine per cent supported by receipts) and a substantial interest-free loan. According to the report, these benefits were neither publicly disclosed nor properly overseen.
Thursday, OPP spokesperson Bill Dickson confirmed that an Ontario Provincial Police Anti-Rackets Branch investigation into the matter is continuing.
“From early investigative work, I was under the impression that this was a case of a hospital using a related entity for the purposes of bypassing rigorous hospital financial practices, which stood to benefit RVH executives getting paid out of this entity,” Stationwala says in the report. “What I discovered upon further investigation and due diligence was that RH was just one piece of a larger puzzle pertaining to a series of irregular transactions and practices involving certain former executives.”
The investigation found Renfrew Health operated without independent governance, relying entirely on RVH staff and resources. Executives performed RH duties while receiving dual compensation – more than $2.7 million – without transparency or proper oversight.
“Over 11 years, more than $3 million in executive pay was funneled through RH, escaping public and board disclosure. Longtime auditors, engaged for over 35 years, failed to flag these irregularities, raising further concerns about systemic accountability,” reads the report.
Compensation overlap extended to a shared leadership arrangement with St. Francis Memorial Hospital, where executives received duplicate benefits such as car allowances.
The report also indicates that RVH leadership, while operating with annual budget surpluses, made decisions suggesting financial constraints, which led to underinvestment in critical areas including clinical staffing, security in the emergency department, and administrative and governance infrastructure.
The report highlights a lack of standard checks and balances, particularly concerning executive compensation decisions. Stationwala concludes that the absence of oversight resulted in misuse of public healthcare funds, dollars that could have been invested in improving services for the community.
In his report, Stationwala says a number of actions have been taken to resolve identified issues and set RVH up for future success.
“Ultimately, I want to recognize the important role that RVH plays in delivering excellent health care and services to the Renfrew community. The team at RVH – from front line to leadership to board – all play a critical role in ensuring this standard continues to be upheld and that care continues to advance to meet the needs of communities into the future,” he said.
Stationwala will be at RVH until June 20, working alongside new president and CEO Suzanne Madore.
The full report can be found on the ministry website.
(Written by Sherry Haaima)