Tuesday, February 12, 2008

Secret Meetings

Outsourced Enforcement? We have seen how well outsourcing has worked with things like disaster relief, so why not take a whack at compliance?

But I know how much a good PWC auditor costs, and I know how much the average civil service auditor makes. I guarantee the latter costs less, unless PWC itself is outsourcing this work to India or someplace.

And would it be too much to ask for the public, or at least the industry, to get a gander at that contract? On what basis is PWC being paid? What is their incentive? Is it a fixed price per audit, is it hourly, or is it based on the fines they collect?

The folks at iHealthBeat have another concern. What if PWC has to audit one of its own clients? The government says the company will recuse themselves. Does that mean the audit is then off? Better call PWC, then.

I don't always agree with Dana Blankenhorn, but in this case he is spot on. This raises far too many questions, and simply cannot be cost-efficient.


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