Waikato Times

Health project costs reveal $6.2m blowout

- Aaron Leaman aaron.leaman@stuff.co.nz

A national DHB computer system designed to replace health boards’ ageing finance and supply chain systems blew its budget by more than $6 million.

The National Oracle Solution (NOS) is jointly managed by NZ Health Partnershi­ps and the country’s 20 DHBs.

Until now, health bosses have repeatedly refused to detail the costs of NOS, citing commercial sensitivit­ies.

However, following a complaint by Stuff to the Office of the Ombudsman, NZ Health Partnershi­ps confirmed NOS has gone $6.2m over its budget, having already cost taxpayers $10.5m. Work on NOS began in April 2015 and was born out of another programme dubbed Finance, Procuremen­t and Supply Chain (FPSC).

NOS inherited $10.5m of funding from the FPSC project, which had an overall budget of $88m.

Waikato DHB has been a key supporter of the initiative, which missed two go-live dates. NOS is now being used at Waikato Hospital after its third go-live date was pushed out to July 1 this year. NZ Health Partnershi­ps initially declined to detail how many staff and contractor­s were assigned to work on NOS, again citing commercial sensitivit­ies.

It has since confirmed 24 staff and contractor­s were assigned to NOS, with 15 workers based in Hamilton, six in Auckland, two in Christchur­ch and one in Wellington.

In a statement, NZ Health Partnershi­ps chief executive Megan Main said all 20 DHBs had renewed their commitment­s to NOS.

Victor Lee, a senior investigat­or at the Office of the Ombudsman, said NZ Health Partnershi­ps reconsider­ed its decision not to release the costs of NOS following Stuff’s complaint. NOS has been hampered by difficulti­es with allegation­s of poor communicat­ion from those leading the project and low staff morale.

A health sector insider, who asked not to be named, said NOS had suffered from a lack of oversight by its DHB stakeholde­rs. NOS isn’t the first IT-related blowout the Waikato DHB has been associated with.

In 2017, it was revealed the Midland eSPACE programme had blown its budget by $28m. That project, which has had its budget increased from $47m to $75m, is tasked with overhaulin­g the region’s health records.

In April, the Waikato DHB abandoned its showpiece virtual health service, SmartHealt­h. An independen­t report into SmartHealt­h found the project’s costs blew out to $25.7m, $8.91m more than anticipate­d.

Waikato DHB has been a key supporter of the initiative, which missed two golive dates.

 ?? MARK TAYLOR/STUFF ?? Fifteen Hamilton-based staff and contractor­s helped develop the National Oracle Solution programme (file photo).
MARK TAYLOR/STUFF Fifteen Hamilton-based staff and contractor­s helped develop the National Oracle Solution programme (file photo).
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