NHF, Health Corporation to merge

A merger of the National Health Fund (NHF) and Health Corporation Limited (HCL), is one of the proposals that has been accepted by the Public Sector Transformation Unit.

President of the Jamaica Civil Service Association Wayne Jones, who sits on the committee overseeing the rationalisation of the 117,000-strong public sector, confirmed the merger in an interview with the Observer. Jones said at least 120 workers at the Health Corporation, a number of them pharmacists, will be affected by the merger. However, he expects some will be re-employed since pharmacists are currently classified as 'scarce professionals'.

The merger of the NHF, which provides drugs to thousands of Jamaicans with various medical conditions at heavily discounted rates, with the HCL which buys and distributes pharmaceutical items to the Government-run Drug-Serv facilities across the island, has been at least two years in the making.

It was first mooted in early 2008 following a study, but the recommendations were not implemented as the trade unions representing the workers objected. Among other things, the unions wanted to satisfy themselves of the legal framework within which the new entity would operate.

The unions were also not satisfied that there was "proper and prior consultation" with the workers. "So we intervened and stopped the process," Jones said yesterday.

"They (Government) have now come back to say that they are ready to proceed and merge and we are satisfied that it is a merger rather than a take-over as the NHF would become a trading company (if it were a take-over)," Jones explained.

He said a steering committee was set up to look at both entities and make recommendations and the unions were represented. 

The union head said it has been proposed to end the contracts of all workers at the HCL as most were contract workers. They include pharmacists and the support staff in the Drug-Serv centres. There are also staff involved in distribution who mostly work out of the HCL's Marcus Garvey Drive-based headquarters in Kingston.

"Pharmacists are already short so they are going to have to re-engage those people. We are talking about professionals and scarce skills," Jones said of the workers to be affected by the merger.

The Public Sector Transformation Unit has been given a deadline of April 1 to indicate which ministries, agencies and departments should be merged, revamped or cut, in a move aimed at making the public sector more efficient.

The unit's recommendations could result in major job cuts in the public service.