Continued delays in roll-out of HSE’s financial system

The next go-live phase for the HSE integrated financial management system (IFMS) is due to commence in April. This represents nearly a year of additional delay compared to a revised timeline set in October 2023.

The ongoing problems implementing the IFMS were acknowledged in a briefing paper for the HSE transformation and technology committee in October 2023.

According to the paper, issues in rolling out the implementation group 1 (IG1) phase of the IFMS meant the next stage of the project had to be delayed.

Invoice processing for some IG1 suppliers remained delayed, largely due to “a significant number” of non-purchase order and non-goods received note invoices, and complications with the newly implemented vendor invoice management process.

A large proportion of these delays related to transactions which were initiated under a number of old systems and were now being processed by the new system.

“Challenges experienced in the stabilisation of operations in IG1 necessitated a sustained focus on providing business and user supports during the hypercare period,” according to the paper. “This has had the consequential impact of delaying the implementation group 2 plan.”

The go-live date for IG2 was originally planned to take place in January 2024. This date was pushed back to May 2024, according to the briefing paper obtained under Freedom of Information law.

However, another briefing paper provided to the committee in March 2024 acknowledged continuing issues. The overall status of the IFMS project was reported to be “off-track major”.

The paper noted that industrial action undertaken by members of Forsa from 6 October 2023 until 7 February 2024 negatively impacted roll-out.

While the Department of Health provided additional funding of €40 million in the HSE’s 2024 Letter of Determination to accelerate the project, future implementation required a replan.

In the replan, the implementation group 2 and 3 stages were realigned to match the new health region structure. 

The scope of this first stage of implementation was to be confined to HSE services. Roll-out to voluntary organisations would not occur until 2026.

Speaking at the joint Oireachtas health committee on 18 September, HSE Chief Financial Officer Mr Stephen Mulvany confirmed the next two go-live dates are 1 April and 1 July 2025.

“The aim is to have it live for the full country in HSE directly provided services by 1 July next year. That will mean it will cover approximately 80 per cent of the total health vote by 1 July next year.”