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Prof Ian Hickie says: ‘My perceived conflicts and my specific shareholdings have
been disclosed in all relevant public reports and places.’ Photograph: ABC
Prof Ian Hickie says: ‘My perceived conflicts and my specific shareholdings have
been disclosed in all relevant public reports and places.’ Photograph: ABC
Health



TURNBULL GOVERNMENT’S $33M GRANT WENT TO COMPANY PART-OWNED BY MENTAL HEALTH
COMMISSIONER AFTER LOBBYING

Exclusive: Funding to Innowell in 2017 without competitive tender was for mental
health app and followed months of lobbying by Prof Ian Hickie. There is no
suggestion of wrongdoing by Hickie

 * Follow our Australia news live blog for the latest updates
 * Get our morning and afternoon news emails, free app or daily news podcast


Melissa Davey and Henry Belot
Wed 26 Jul 2023 01.00 AESTLast modified on Wed 26 Jul 2023 08.36 AEST
 * 
 * 
 * 



The former government led by Malcolm Turnbull awarded a $33m grant to a company
that was developing a mental health app after months of lobbying from one of its
own mental health commissioners who was also a shareholder in the months-old
startup.

The one-off grant was awarded in 2017 without a competitive tender to Innowell
for a series of collaborative research trials into a digital mental health
platform. Its shareholders include PwC, the University of Sydney and former
mental health commissioner Prof Ian Hickie.



While there is no suggestion of wrongdoing by Hickie, the university or PwC,
transparency and mental health advocates are concerned about the closed process
and argue an open and competitive tender for the $33m investment would have
ensured value for money. Hickie told Guardian Australia: “My perceived conflicts
and my specific shareholdings have been disclosed in all relevant public reports
and places.”

 * Sign up for Guardian Australia’s free morning and afternoon email newsletters
   for your daily news roundup



Some advocates have also questioned the independence of the studies examining
the efficiency of Innowell’s platform – although the company defends the
evaluations.

Despite repeated questions from Guardian Australia, neither the federal health
department nor Innowell have provided a breakdown of how the money was used.

Hickie, PwC and Innowell’s chief executive have all described the platform as a
success that has delivered a return for taxpayers, but the federal health
minister and senators are calling for more information about the grant.


THE PATHWAY TO FUNDING

In June 2017, the federal health department formally awarded the money to
Innowell – whose scientific adviser is Hickie – for a series of trials into a
digital mental health platform. Innowell was registered as a proprietary company
limited by shares in February 2017 and, according to Asic documents, Hickie
registered shares in April.

In May 2017, weeks before the funding was secured and during negotiations, PwC
and the University of Sydney – where Hickie is a co-director at the Brain and
Mind Centre – both registered 45% shareholdings. The split of shares was
collectively agreed to by all parties.



Hickie told Guardian Australia his 5% equity share was determined by company
directors and reflected his role as one of “the intellectual leads of the whole
process”. He said he received no income from the company beyond his
shareholding, which had since been reduced to 3.2%. Another researcher, Prof
Jane Burns, also received a 5% equity share.

PwC-backed mental health platform was scrapped after $33m government trial
launched without open tender
Read more

The one-off grant followed extensive lobbying by Hickie to then-prime minister
Turnbull for further investments in digital mental health innovations. Hickie at
the time held a government-appointed position as a national mental health
commissioner.

In an opinion piece in the Daily Telegraph in September 2015, Hickie wrote: “If
prime minister Turnbull seriously wants to show that he is focused on
21st-century solutions, one of his first actions could be to … invest in new
technologies linked to new smart systems and expert clinical and technical
teams.”

Timeline

INNOWELL FUNDING TIMELINE

Show
2014 - 2016


The federal government awards $5.5m to Project Synergy after a competitive
application process. The collaborative project researches digital mental health
services.

14 September 2015


Malcolm Turnbull replaces Tony Abbott as leader of the Liberal party and becomes
prime minister.

23 September 2015


Then national mental health commissioner and co-director of the Brain and Mind
Centre at the University of Sydney, Prof Ian Hickie, writes an opinion piece for
the Daily Telegraph urging Turnbull to invest in digital mental health services.

24 May 2016


Turnbull faces questions about mental health on the campaign trail before the
federal election and phones Hickie to offer personal commitment to reduce
suicide “backed by smart technology”, the Sydney Morning
Herald and HuffPost report.

26 June 2016


While on the campaign trail, Turnbull promises $30m “to trial new digital
technologies to ensure access to mental health services wherever and whenever
needed 24/7”.

27 June 2016


Hickie applauds the $30m for “a world-leading suicide prevention system”.

20 July 2016


The Coalition wins the federal election.

17 November 2016


PwC declares financial donations worth $155,605 to federal and state
Liberal parties. Overall political donations are $232,619.

7 February 2017

Innowell is registered as a proprietary company limited by shares to lead the
next stage of Project Synergy. The founding directors include Kristin Stubbins,
a PwC partner and the firm’s future acting chief executive, and former ministers
Alan Griffin (Labor) and Michael Ronaldson (Liberal).

February 2017


All Innowell partners agree on a shareholding structure, signed by the delegated
authority.

18 April 2017


Hickie’s 5% shareholding is registered with Asic.

16 May 2017


PwC’s 45% shareholding is registered with Asic.

16 May 2017


The University of Sydney’s 45% shareholding is registered with Asic.

30 June 2017


The federal health department enters a formal funding agreement with Innowell
for the next stage of collaborative research trials known as Project Synergy.
The agreement is for $33m allocated over the next three financial years, and the
funding is allocated following a non-competitive, closed grant process.

2017 - 2019


The government gives a total of $33m in funding to Innowell Pty Ltd to develop
and research the Innowell platform.

June 2021


The federal government allocates a portion of $111m in digital services funding
in the 2021-22 budget towards transforming the government’s existing Head to
Health website into a more comprehensive national mental health platform. It
decides not to adopt the Innowell platform in any of its health services, or to
further invest in it.

Was this helpful?
Thank you for your feedback.

At the time, Hickie was involved in an initiative called Project Synergy, which
brought experts together to develop a digital mental health platform,
administered by the Young and Well Cooperative Research Centre. That project
received $5.5m in government funding through a competitive process from 2014 to
2016.

When the funding expired, the research centre was “wound up” and the
intellectual property from Project Synergy was transferred to the University of
Sydney for further development, Hickie said.


ELECTION PROMISES

Mental health was a key issue during the 2016 election campaign. After it was
raised in a press conference, Turnbull called Hickie to personally assure him of
his commitment to reducing suicide “backed by smart technology”. Weeks later,
Turnbull pledged $30m to trial new digital mental health technologies.


Malcolm Turnbull speaks at a mental health awareness breakfast for national R U
OK? day at Parliament House, Canberra, in 2017. Photograph: Mike Bowers/The
Guardian


After the July poll – won by the incumbent Coalition government – those involved
in Project Synergy discussed the creation of a new company, Innowell, which
would administer federal funds and bid for other government grants. Asic
documents show its founding directors were former Liberal minister Michael
Ronaldson, former Labor minister Alan Griffin and then-PwC partner Kristin
Stubbins. There is no suggestion of wrongdoing by Griffin, Ronaldson or
Stubbins.

The shareholdings of Hickie, who was still advising the government on mental
health policy, and PwC, which had lucrative contracts with the government and
was a major political donor, did not change the Coalition’s decision to award
the money through a closed and non-competitive process.

Turnbull was contacted by Guardian Australia but did not comment on the record.

Hickie said: “The Turnbull government expectation was that the $30m was a
one-off grant to establish a for-profit entity with capacity to compete
commercially in Australia and internationally – and that the company would not
be dependent on further national government investments for its ongoing
operations.”

When asked by Guardian Australia if there should have been an open application
for the $33m, Hickie pointed to the earlier $5.5m competitive grant and work
already conducted by his team at the University of Sydney.

“Are you really suggesting that the third phase could or should have then gone
out competitively?” Hickie said in a statement.

“Who could have competed to develop a platform that was already well into its
own development, where the IP was already held by the University of Sydney, and
had formed its own relevant private partnerships to facilitate its own pathway
to commercialisation?”


THE IMPORTANCE OF TRANSPARENCY

The federal health minister, Mark Butler, has asked the department for a brief
on the funding allocation after the department was unable to answer questions
from Guardian Australia about why the decision was taken to allocate $33m
through a closed process, or to provide a breakdown of how the funding was
spent.


Greens senator Barbara Pocock (right), who is leading a Senate inquiry into
consultants along with Labor’s Deborah O’Neill (left), has serious concerns
about the grant. Photograph: Mick Tsikas/AAP


A health department spokesperson would only say “it was a decision of the
government at the time”.

Transparency International Australia’s chief executive, Clancy Moore, has raised
concerns about the one-off grant. He told Guardian Australia that Department of
Finance guidelines advised governments to promote “open, transparent and
equitable access to grants and to identify possible risks in grant programs”.

“The decision to award a one-off closed grant to a for-profit entity, which the
then-national mental health commissioner, a position appointed by the
government, had shares in does raise obvious conflicts of interests and a clear
risk in the awarding of the grant,” Moore said.

“Unfortunately, this $30m grant is another example of how personal friendships,
politics and networks can influence public policy and the use of valuable public
money.”

Hickie dismissed this concern, stating that his role as national mental health
commissioner was well known and he advocated for many mental health initiatives.

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“My perceived conflicts and my specific shareholdings have been disclosed in all
relevant public reports and places,” Hickie said.

Greens senator Barbara Pocock, who is leading a Senate inquiry into consultants
along with Labor’s Deborah O’Neill, also has serious concerns about the grant.

“I’d say there would be many suppliers in that market who would have jumped at
the chance to bid for a contract such as this, so the question is, why weren’t
they given that opportunity?”


QUESTIONS ABOUT TAXPAYER VALUE FOR MONEY

Hickie, PwC, and Innowell’s chief executive, Syed Ahmed, have all described
Project Synergy as a success that has delivered a return for taxpayers. But the
platform is not without its critics.



The federal health department said the platform received a mixed response from
practitioners, with many perceiving it as an administrative burden.

An evaluation of the project led by Prof Ilan Katz from the Social Policy
Research Centre at UNSW Sydney, prepared and funded by Innowell in 2020 and
released under FOI, raised concerns about its usefulness.

“In terms of [mental health] consumers, the evaluation was not provided with
sufficient data to draw any conclusions about the value to their treatment and
their outcomes,” the evaluation found.

The evaluation also found “the [Innowell] platform has had a mixed response,
particularly by practitioners, many of whom have, at least initially, perceived
it as adding another administrative burden to their work”.

Hickie said the fact the Abbott and Turnbull governments had invested in the
digital technology was a demonstration of its success.

“The success in securing contracts internationally would also be seen by others
as a most welcome return on investment,” he said.

Ahmed said the company was selling its product worldwide “with very clear and
tangible results in improving the delivery of mental healthcare”.

“Since commencing commercialisation in 2021, the platform has well over 100,000
users,” he said. “While it is still in early stages of growth, revenues are
expected to total above $50m over the next three years.”


ISSUES ARE RAISED WITH THE DEPARTMENT OF HEALTH

Concerns about the efficacy of Innowell were also directly communicated with the
federal health department. A document sent to the department by a mental health
researcher in August 2022, seen by Guardian Australia, outlined concerns about a
lack of independent and rigorous research informing Innowell’s development.

Will hundreds of Australian pharmacies close over dispensing changes or is it
just a scare campaign?
Read more

It cites concerns that many consultations with target groups such as veterans
and young people with mental health issues involved small sample sizes and too
few people with lived experience. Those with lived experience who did
participate expressed concerns around the privacy of their data, while some
people living with eating disorders were concerned that tracking and ongoing
assessment through the Innowell platform could be problematic as “scores could
engage perfectionism”.

“These teams have a legitimate interest in developing faster and more efficient
mental health services, which we share as a community,” the document states.

“Where we diverge is the lack of transparency and accountability for funds that
are now sequestered in a commercial entity. The work to date has little academic
or scientific credibility. A monopolised, commercialised control model has
little place when trying to manage a diverse population with deep, complex
health needs.”



Asked about these concerns, Ahmed said: “There were a number of processes in
place to inform the co-design of the platform, with a wide variety of views from
everyone involved. Input from those with lived experience was, and remains, a
key part of the platform’s framework.”

Hickie said that “much work on privacy, legally and from a consumer perspective,
has been done” as part of the project. He said he believed the concerns raised
in the document were part of “a campaign to protect the current primary mental
health roles held by Australian general practitioners”.

He said access to mental health services was “government-financed,
doctor-controlled, and monopolised, since GPs are the only source of referral to
other government-subsidised psychological services”.

He said he believed the aim of the document was “to ensure that the Albanese
government does not support” any reforms that would disrupt this GP-led model,
“including the increasing digitisation of healthcare generally, and mental
healthcare specifically”.

“Clearly, by attacking me personally at this time, and seeking to discredit the
rigour of our independently assessed and peer-reviewed academic outputs, their
goal is to stall genuine reform of these key aspects of health care reform,”
Hickie said.

“The much more interesting story is why digital transformation has been so slow,
particularly post-Turnbull.”

The Innowell platform was built and trialled across a number of New South Wales
mental health services, with the Project Synergy trial concluding in June 2021
and a final report submitted to the federal health department the following
month.

The federal and NSW health departments have confirmed there has been no further
use of or investment in the Innowell platform by the governments.

In Australia, support is available at Beyond Blue on 1300 22 4636, Lifeline on
13 11 14, and at MensLine on 1300 789 978. In the UK, the charity Mind is
available on 0300 123 3393 and Childline on 0800 1111. In the US, Mental Health
America is available on 800-273-8255

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