Computer budget kept quiet
Those behind a national computer system for district health boards are refusing to reveal how much it has cost taxpayers.
Work on the National Oracle Solution project began in April 2015 with the aim of replacing health boards’ ageing finance and supply chain systems.
The project is currently being reviewed by the Health Ministry but, to date, has absorbed millions of public health dollars.
Those heading the project have repeatedly refused to reveal the exact cost of the programme but conservative estimates put it in the tens of millions.
The national programme is jointly managed by NZ Health Partnerships and the country’s 20 district health boards.
Since its inception, the project has been beset with difficulties, including allegations of low staff morale and a lack of communication between the various health boards.
The Waikato and Canterbury district health boards have been key supporters of the initiative which has already missed two golive dates.
Its next go-live date is July 1.
Details withheld
In response to an Official Information Act request in September last year, NZ Health Partnerships declined to detail the exact cost of the project, saying it would be released publicly in early October.
In a follow-up statement in December, the district health board owned organisation said it was unable to give the programme’s cost.
In March, chief executive Megan Main again refused to detail the original budget for the project or to reveal its cost overruns, this time citing commercial sensitivities.
Main also refused to say how many district health board staff members and contractors were engaged on the project.
A health sector insider, who spoke on the condition of anonymity, said the principles underpinning the project were sound but it had been hampered by poor communication from those leading the project.
A lack of transparency around costs should prompt health board members to ask tough questions, she said.
‘‘Essentially National Oracle Solution is a shared services model and it is looking to create economies of scale. But there is real concern that it won’t meet its go-live date. Every time the project misses its launch date, the sector misses out on potential efficiency gains. It makes you question the whole governance framework around such projects.’’
The project was born out of another programme dubbed Finance, Procurement and Supply Chain.
National Oracle Solution inherited $10.5 million of funding from the earlier project.
Regular updates
Waikato District Health Board interim chief executive Derek Wright was ‘‘reasonably confident’’ the National Oracle Solution programme would meet its go-live date after having received regular updates on its progress.
The project had been in the works for several years and promised to deliver efficiencies and cost savings to the health sector.
‘‘We’ve been waiting for this for a wee while so if the project is delivered in July or August I don’t think it will make a huge difference,’’ Wright said.
‘‘We’re a country of just over 4 million people and it makes sense to have one system of procurement. It’s a bit like Pharmac. When we moved to having Pharmac negotiate and purchase all our medicine, we suddenly got much better deals and we were able to reinvest more money into pharmaceuticals.
‘‘Like any big IT project it’s had its issues but from a district health board point of view we still see National Oracle Solution as being a solution for New Zealand.’’
Wright said the Labour-led Government appeared committed to the project.
Waikato District Health Board member Martin Gallagher said it was appropriate for health boards to use one platform when it came to financial and accounting systems.
Gallagher said he would seek a briefing on the project.
‘‘For a country of four and a half million people, having singular systems has much to commend it. But I will be asking questions and I have found Derek Wright extremely receptive and interactive with the board in these areas,’’ Gallagher said.