Craig Benson has never been shy about wanting to "run government like a business." The Governor's stated goal is to reduce bureaucracy and protect taxpayers. But, as NHPR's Josh Rogers reports, the Benson approach has raised questions about whether Linda Pepin gave a local firm a leg up on a lucrative contract.
NHPR's series on Linda Pepin and the Choicelinx contract earned a 2004 Sigma Delta Chi Award for Radio Investigative Reporting from the Society of Professional Journalists.
In his inaugural address Craig Benson promised to change state government, and cited several examples of people he said were changing New Hampshire for the better. Prime among them was a member of his own transition team.
"Donna Lencki, she's founder of Choicelinx and CEO of Choicelinx, and she's pioneering a whole new way to develop high quality information in health care that will revolutionize the way we deliver health care all around the world. Thank you for what you are doing."
Fast forward to June 25th. Choicelinx wins an $885,000 state contract to allow state employees to manage their heath and dental benefits online. When the contract went to the Executive Council, its cover letter said the state had collected information from five other high-tech vendors, and found none could meet New Hampshire's needs. But NHPR was able to reach four of those five companies, and not one of them has any recollection or record of contact with the state of New Hampshire.
"I've looked at two different databases and it's not in either one of those."
Cynthia Feiden-Warsh is regional vice-president for sales with the Virginia-based Lumenos company. She says it was highly unlikely that she was outside the loop on any such proposition.
"Somebody else could have made the determination. However, it's unlikely they would have made the determination without me."
Beyond what's said in the letter to the Executive Council, so far there is little evidence that the five companies were contacted. Even the man who signed the letter -- Administrative Services Commissioner Don Hill -- says those claims came from state personnel director Joe D'Alessandro.
"He swears that they made contact with these five different companies."
"And did he provide evidence"
"He's supposed to be getting me evidence now."
"And if that evidence doesn't surface?"
"Then I would have concerns."
But when asked about the matter later the same day, Joe D'Alessandro couldn't confirm that the five companies had been contacted.
"I don't know. I mean I don't have. I rely on the consultant."
And who was D'Alesandro's consultant? A person he once worked with at Cabletron, and for a period of time, was his business partner.
"My name is Linda Pepin, and I'm currently special advisor to the governor of New Hampshire on health care issues. I'm also on the state negotiating team, so I'm working with the unions and trying to get a contract. And I have a small consulting practice, so I have private clients as well."
Pepin made those comments last week in Nashville -- where she and a Choicelinx executive appeared at a national conference to present a case study touting the state's deployment of Choicelinx's online benefit system. At the time of interview, Linda Pepin wore a name tag indicating she was an employee of the state office of personnel.
"Now you are with the state personnel office?"
"Actually, I have a company called AlphaDirections. This really should say, "special advisor to the governor of NH, yeah."
This isn't the first time that there have been questions about the status - and power - of a person who assists the governor. But in the case of Linda Pepin, there is real money involved - the contract worth as much as $885,000 with Choicelinx. And there are real questions about the process behind that contract.
Pepin herself never replied to requests to be interviewed for this story. Nor was the Director of Personnel, Joe D'Alessandro, able to provide any documents showing that Pepin had actually contacted the vendors listed in the contract cover letter.
By all accounts, Pepin had all the information about the potential vendors, recommended a particular vendor and is not a state employee. That has never happened before, at least according to Administrative Services Commissioner Don Hill.
"It's unusual, but again, that was an innovative-type deal with Choicelinx."
"But can you think of a single instance where that has happened, other than this?"
"No."
The irregularity of the Choicelinx deal is of little apparent concern to Governor Craig Benson. On Wednesday, he stressed that it's saving the state money, and said he could not be happier.
"What Choicelinx provides is a unique new program --so there is not a lot people out in the field that are organizing healthcare delivery in the way Choicelinx can do. I'm proud they are in this state."
The governor isn't the only one who emphasizes that Choicelinx delivers a "unique program." In defending the contract, Don Hill and Joe D'Alessandro use nearly identical terms. But according to Eric Brown, a health technology analyst for Forrester Research in Cambridge Massachusetts, Choicelinx is by no means the only game in town.
"There are a number of companies that are providing the combination of a single unified front-end to an employer's numerous health plans-- in addition, the guidance, the kind of expert advice or modeling tools that would allow employees to make wise decisions."
The matter of the Choicelinx contract could become another headache for the Benson administration. The state Democratic Party is already threatening to sue for information about volunteers on the Governor's staff. But the concern about transparency in government is not simply a partisan one. On Wednesday, Republican Executive Councilor Peter Spalding admitted he's troubled by the role that Linda Pepin has played on behalf of the state.
"It's a question of how much authority should be given to somebody to conduct state business who is not a state official. And here we have an example of the types of trouble and problems that you get into, and potentially illegalities. And this morning we talked to Don Hill and the Deputy Attorney General and the Governor to look into this and find out what has transpired."
For Choicelinx's part, its chief operating officer says the company has given the state good value and that it's up to the state to follow its own procedures. Meanwhile, State Personnel director Joe D'Alessandro stands by Linda Pepin. D'Allesandro says when it comes to cutting administrative costs in healthcare, she shares his goal of creating "a paperless environment." In the case of Pepin's role in the Choicelinx contract, the process may have been a bit too paperless.
For NHPR News, I'm Josh Rogers.
