Foundever, the company responsible for Virtual Care NB in New Brunswick, is facing significant financial difficulties, evidenced by a credit rating downgrade from S&P Global. The agency reduced Foundever's rating from B minus to CCC, indicating a high likelihood of defaulting on its debts within a year. This downgrade, which occurred late last year, has raised alarms among investors and political figures.
The situation has been exacerbated by the recent departure of two of Foundever's co-founders, Laurent Uberti and Olivier Camino. Uberti, a former CEO, announced their exit on social media, citing a "profound transformation" in the industry due to AI and a desire to pass leadership to a new generation. This comes months after the damning financial report and has led opposition politicians, such as Glen Savoie and Megan Mitton, to express concerns about the viability of Virtual Care NB and the province's reliance on the company.
New Brunswick's contract with Foundever is for two years, with an option to renew annually for two more years, and has a yearly budget of $12.9 million. Payments are made based on an estimated 250,000 virtual care visits per year, only for services delivered. Despite the mounting financial worries and executive changes, Foundever states that Virtual Care NB remains fully operational. However, opposition politicians are urging the government to develop a backup plan to ensure continuity of health services for New Brunswickers.
Health Minister John Dornan has previously defended Foundever as a "good, credible company" despite its financial troubles. Premier Susan Holt has acknowledged issues with the rollout, including long wait times. The government has largely referred questions about Foundever's financial status to the company itself, which has maintained that its services in the province are unaffected.
