A consulting firm closely linked to Queensland’s state health system, Create Health Advisory, has secured significant contracts totaling over $2 million from the state’s largest public hospital service, raising potential conflict of interest concerns among political opponents. Founded in 2023, the firm is headed by former Queensland Health director-general Shaun Drummond, who serves as one of its managing principals.
Since November 2024, Create Health Advisory has been awarded contracts exceeding $1.7 million from Metro North Hospital and Health Service. This includes a notable contract worth $1.1 million for “professional services,” which was procured under a limited tender due to technical requirements that could only be met by Create Health. The contract was established to enhance organizational strategy, governance, and financial sustainability within the health service.
Amidst these developments, the Crisafulli government has struggled to fulfill its election promise to limit outsourced spending on consulting services. Since taking office, its departments have allocated $25 million to major consulting firms, including Deloitte and KPMG.
Concerns Over Conflicts of Interest
The emergence of Create Health Advisory has raised eyebrows, particularly regarding potential conflicts of interest. Drummond, prior to his role at Create Health, was on leave from Deloitte while serving as acting director-general for Queensland Health. This close-knit relationship between the firm and the state health system has prompted scrutiny from the opposition, with Shadow Treasurer Shannon Fentiman expressing concerns about transparency.
“There are potential serious conflicts of interest that need addressing,” Fentiman stated. “Queenslanders deserve truth and transparency, especially when millions of dollars are involved.”
The firm not only holds contracts with Metro North but has also secured $427,900 in contracts from Gold Coast Health. This includes a substantial advisory retainer that exceeds the total work awarded to Deloitte by the Gold Coast service.
Regulatory Compliance and Responses
Create Health Advisory maintains that it adheres to strict policies to comply with post-separation obligations for its staff. A spokesperson from the firm emphasized the importance of client confidentiality and stated, “Create Health Advisory values the confidentiality of our clients and does not discuss specific client engagements.”
“This work required specialist expertise not available within Metro North,”
said a spokesperson for Metro North Health, defending its decision to award contracts to Create Health. They affirmed that all contracts underwent standard approval processes to ensure compliance with conflict of interest regulations.
Further inquiries into the limited tender process have not been addressed, and Tim Nicholls, the Health Minister, has not commented on the situation.
The ongoing spending on consulting services by the Queensland government has prompted discussions about the effectiveness of procurement practices. A report by the Queensland Audit Office noted that while construction accounted for a significant portion of contracted spending, professional services also represented a considerable share, indicating a need for improved oversight and strategic workforce planning.
Despite previous intentions to audit these outsourcing practices, the audit office has recently decided to forgo its planned examination, leaving the issue of transparency in state spending unresolved.
As the situation unfolds, the implications of Create Health Advisory’s contracts with state health services continue to be a focal point in discussions surrounding conflict of interest and government spending practices.
