A nearly\u00a0$1 billion project to deploy a single digital patient record\u00a0(SDPR) in NSW is at risk of cost overruns, with system integration costs likely underestimated in the business case, the NSW Audit Office has said.<\/p>\n
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The office yesterday released a report [pdf]<\/a> which found the business case for the SDPR was\u00a0“inaccurate”.\u00a0<\/p>\n The SDPR is seen as a way for healthcare teams to quickly access real-time patient data across the state, simplifying a system that\u00a0had previously\u00a0comprised\u00a0of\u00a0nine electronic medical record\u00a0systems, six patient administration systems and five pathology laboratory information systems statewide.\u00a0<\/p>\n It is underpinned by software from US healthcare provider Epic Systems, under a contract worth $969 million. It was originally signed for more than $1 billion in late 2023.<\/p>\n Specifically, the auditor said the business case for the SDPR \u201cdid not capture all relevant project costs\u201d.<\/p>\n It also said that estimated operating costs were not backed by “sufficient or reliable evidence”.\u00a0<\/p>\n \u201cThe business case did not consider the estimated cost of integrating the SDPR system with legacy systems that will remain in use,\u201d the auditor said.\u00a0<\/p>\n \u201cThis integration process is crucial for the successful implementation of the SDPR system and early indicators suggest that these integration costs will be significant.\u201d\u00a0<\/p>\n The auditor said that without supported or approved cost estimates, the project was vulnerable to cost overruns and mistakes.<\/p>\n NSW Health included an estimate for implementation-related expenses for local health districts and in-scope\u00a0health entities\u00a0in its business case for the project.<\/p>\n However, the auditor said that this estimate\u00a0wasn\u2019t\u00a0supported by strong documentation\u00a0as there was\u00a0a lack of cost information\u00a0available at the time the business case was written.<\/p>\n The audit office said that this could mean project costs are understated.<\/p>\n NSW Health SDRP Implementation Authority (SDPRIA) chief executive\u00a0Teresa Anderson said the pandemic played a part in the cost calculation variations.<\/p>\n “The initial business case was developed in 2021 amidst the Covid pandemic, with a lean “Since then, global supply chain disruption and rising operational costs have increased the cost of “Despite the challenges, the SDPR Implementation Authority remains committed to delivering value for NSW Health.”<\/p>\n She added that the authority “has put in place tight financial governance to oversee the program, including all procurement and implementation of integration of systems to the SDPR.\u201d<\/p>\n In the works since 2019<\/p>\n The SDPR project has been on the roadmap for a number of years.<\/p>\n After first exploring the idea of\u00a0digitised\u00a0health\u00a0records\u00a0in 2019<\/a>,\u00a0NSW Health\u00a0went to market<\/a>\u00a0with a tender for a statewide single digital health record in 2020.\u00a0<\/p>\n The business case for the SDPR was first developed in 2021.\u00a0<\/p>\n In late 2022,\u00a0Epic Systems was tapped<\/a>\u00a0to build out the SDPR.\u00a0<\/p>\n In 2024, an authority under the Health Administration Corporation was formed to oversee the deployment of the system, according to the audit office\u2019s report.\u00a0<\/p>\n In February of the\u00a0same year<\/a>,\u00a0NSW Health began hiring tech talent to\u00a0rollout\u00a0the SDPR.\u00a0<\/p>\n
business case completed in 2023 under markedly different economic conditions,”\u00a0she said to iTnews in a statement.<\/p>\n
delivering programs of this nature.<\/p>\n