The NSW Audit office has found nobody factored in the cost of integrating the $969m single digital patient record into legacy systems.
The NSW Audit Office has uncovered a basic business case error that is likely to tip the state’s single digital patient record project well over the $1 billion mark by the time it is fully integrated.
In a report released last week, the NSWAO found that the business case for the SDPR – initially developed in 2021 – “did not capture all relevant project costs, and the estimated operational costs were not supported by sufficient or reliable evidence”.
“The business case did not consider the estimated cost of integrating the SDPR system with legacy systems that will remain in use,” said the report.
“This integration process is crucial for the successful implementation of the SDPR system and early indicators suggest that these integration costs will be significant.
“Unsupported or unapproved cost estimates increases the risk of budget overruns and misinformed decisions.
“The operational costs include an estimate to cover implementation-related expenses for the local health districts and in-scope health entities.
“This estimate was not supported by robust documentation due to limited cost information available at the time.
“Project costs may be understated by not assessing and identifying all implementation costs during project planning.
“A performance audit planned for 2026–27 will assess the efficiency and effectiveness of the procurement, governance and project management of the SDPR project.”
US healthcare software provider Epic was awarded the SDPR contract – worth $969 million – late in 2022.
The NSW Health SDRP Implementation Authority, under CEO Teresa Anderson, was set up in 2024 to oversee the project.
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In a statement Ms Anderson said the covid pandemic was partly responsible for the omission.
“The initial business case was developed in 2021 amid the covid pandemic, with a lean business case completed in 2023 under markedly different economic conditions,” she said.
“Since then, global supply chain disruption and rising operational costs have increased the cost of delivering programs of this nature.
“Despite the challenges, the SDPR Implementation Authority remains committed to delivering value for NSW Health.”
She said 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”.
Earlier this month TMR’s sister publication Health Services Daily reported that almost 200 staff from LHDs and specialty health networks have volunteered to support the delivery of SDPR training and received their orientation training.
The SDPR will be implemented across the state in five stages, with more than 25,000 healthcare staff across Hunter New England LHD, Justice Health and Forensic Mental Health Network and NSW Health Pathology’s Hunter New England sites to be among the first to access it, with plans to go live in March next year.
The new system will unify the nine electronic medical records, 10 patient administration systems and five laboratory information management systems currently in use across NSW Health.
It will cover more than 220 public hospitals, more than 150 pathology collection centres, 65 laboratories and approximately 600 community health centres across the state when fully complete in 2028.
