Discernable function
"had no discernible function for the public and the report questioned why they were even created."
So, their saying that only websites that are useful to the public are worth creating then. So that would be why no company ever has had an intranet or an extranet???
"The document was leaked to the Health Services Journal, but its website is subscriber-only"
and by extension is useless to the public and should never have been created in the first place.
I'm not condoning the waste of money, just saying that the report is a load of cobblers. I've worked on an NHS site and the middle management there were the type of people who have meetings to decide when to have meetings. They also approved the design, then when it was created (pixel perfect), changed their minds and requested a full re-design (additional cost was of no concern).