The e-catalogue is just one of a long list of projects that have been riddled with problems since the department first began efforts to implement a standard procurement process that includes a single IT system for state-wide data collection and information sharing.
The SCRS was earmarked for completion in late 2003, but the report says the department is still years away from developing standardized procurement processes.
However, to date the SCRS has achieved savings of more than $60 million since 2002, which is still well below the initial target of $80 million. NSW Health has 250 hospitals across the state, which spend more than $1.3 billion annually on goods and services.
One obstacle has been a lack of financial resources according to the report which states that the e-catalogue, to be used to monitor supplies, is yet to secure the necessary funds required for it to be implemented.
In the interim, a number of area health services have implemented e-catalogues of their own, each with its own stock numbers that will need to be changed to comply with a uniform set of codes to be introduced in late 2006.
The catalogues are not linked to the NSW Health system and an interface is yet to be developed.
The auditor general's report noted that initiatives within the department are implemented at a slow pace, pointing out that a restructure announced in July 2004 was the first major change in 18 years.
Responding to the report, NSW Health director general Robyn Kruk said the audit highlights the breadth and complexity of procurement within the health system.
Kruk said while the report makes a contribution to the difficulties in reforming supply chains, "it is a pity it does not reflect that many of the progress delays have been caused by external factors", adding that the auditor general's recommendations are consistent with the department's reform agenda.
Restructure stalls e-health initiatives
In 2004 NSW Health announced a major restructure, but little progress has been made.
The restructure included reducing the state's 17 area health services to eight, but an e-government audit by the NSW Auditor General said it hasn't happened.
In practice, all 17 areas are still operating. This has been a major obstacle to Health's supply chain reforms.
For example, after disbanding the Health Peak Purchasing Council, the plan was to form a shared corporate services group. This group is responsible for implementing a central payment plan.
But introduction of the payment plan couldn't go ahead because all the area health services are still operating.
The shared services group was expected to achieve procurement savings of $100 million, according to the audit report. The most complaints about NSW Health come from suppliers who are not paid on time.
The report said not paying suppliers in a timely manner impacts on price, and each area service is forced to manage local complaints. Such non payment also hinders each area's ability to negotiate better deals in the long term.
Current funding processes to each area is another problem identified in the report. One area health service said it was given $10 million to spend in the last two weeks of the financial year, adding that this had occurred on a number of occasions.
NSW Health has an annual budget of $10 billion and 10,000 staff.
Preferences and projects
NSW Health is introducing a standard health vendor file which will include 40 preferred suppliers.
It is earmarked for completion in the 2005/06 financial year.
The department is also developing an e-marketplace and the 18-month implementation will begin in March 2006. One area health service has begun a three month trial of the marketplace. Projected savings for the project vary from $24 million to $46 million annually to $109 million over five years.
NSW Health has completed implementation of a Health Quality Reporting System, a platform developed internally.
Also, a standard contract document template has been developed and there is a single contract database in place.
Autor: Sandra Rossi
Quelle: Computerworld Australia, 25.11.2005
