Category Archives: ERP

NHS “Wachter” digital review is delayed – but does it matter?

By Tony Collins

The Wachter review of NHS technology was due to be published in June but has been delayed. Would it matter if it were delayed indefinitely?

A “Yes Minister” programme about a new hospital in North London said it all, perhaps. An enthusiastic NHS official shows the minister round a hospital staffed with 500 administrators. It has the latest technology on the wards.

“It’s one of the best run hospitals in the country,” the NHS official tells the minister, adding that it’s up for the Florence Nightingale award for the standards of hygiene.

“But it has no patients,” says the minister.

Another health official tells the minister,

“First of all, you have to sort out the smooth running of the hospital. Having patients around would be no help at all.” They would just be in the way, adds Sir Humphrey.

In the Wachter’s review’s terms of reference (“Making IT work: harnessing the power of health IT to improve care in England“)  there is a final bullet point that refers, obliquely, to a need to consider patients. Could the Wachter terms of reference have been written by a satirist who wanted to show how it was possible to have a review of NHS IT for the benefit of suppliers, clinical administrators and officialdom but not patients?

The Wachter team will, according to the government,

• Review and articulate the factors impacting the successful adoption of health information systems in secondary and tertiary care in England, drawing relevant comparisons with the US experience;

• Provide a set of recommendations drawing on the key challenges, priorities and opportunities for the health and social care system in England. These recommendations will cover both the high levels features of implementations and the best ways in which to engage clinicians in the adoption and use of such systems.

In making recommendations, the board will consider the following points:

• The experiences of clinicians and Trust leadership teams in the planning, implementation and adoption of digital systems and standards;

• The current capacity and capability of Trusts in understanding and commissioning of health IT systems and workflow/process changes.

• The current experiences of a number of Trusts using different systems and at different points in the adoption lifecycle;

• The impact and potential of digital systems on clinical workflows and on the relationship between patients and their clinicians and carers.

Yes, there’s the mention of “patients” in the final bullet point.

Existing systems?

nhsSome major IT companies have, for decades, lobbied – often successfully – for much more public investment in NHS technology. Arguably that is not the priority, which is to get existing systems to talk to each other – which would be for the direct benefit of patients whose records do not follow them wherever they are looked at or treated within the NHS.

Unless care and treatment is at a single hospital, the chances of medical records following a patient around different sites, even within the same locality, are slim.

Should a joining up of existing systems be the main single objective for NHS IT? One hospital consultant told me several years ago – and his comment is as relevant today –

“My daughter was under treatment from several consultants and I could never get a joined-up picture. I had to maintain a paper record myself just to get a joined-up picture of what was going on with her treatment.”

Typically one patient will have multiple sets of paper records. Within one hospital, different specialities will keep their own notes. Fall over and break your leg and you have a set of orthopaedic notes; have a baby and you will have a totally different set of notes. Those two sets are rarely joined up.

One clinician told me, “I have never heard a coroner say that a patient died because too much information was shared.”

And a technology specialist who has multiple health problems told me,

“I have different doctors in different places not knowing what each other is doing to me.”

As part of wider research into medical records, I asked a hospital consultant in a large city with three major hospitals whether records were shared at least locally.

“You must be joking. We have three acute hospitals. Three community intermediate teams are in the community. Their records are not joined. There is one private hospital provider. If you get admitted to [one] hospital and then get admitted to [another] the next week your electronic records cannot be seen by the first hospital.  Then if you get admitted to the third hospital the week after, again not under any circumstances will your record be able to be viewed.”

Blood tests have to be repeated, as are x-rays; but despite these sorts of stories of a disjointed NHS, senior health officials, in the countless NHS IT reviews there have been over 30 years, will, it seems, still put the simplest ideas last.

It would not cost much – some estimate less than £100m – to provide secure access to existing medical records from wherever they need to be accessed.

No need for a massive investment in new technology. No need for a central patient database, or a central health record. Information can stay at its present location.  Just bring local information together on local servers and provide secure access.

A locum GP said on the Pulse website recently,

“If you are a member of the Armed Forces, your MO can get access to your (EMIS-based) medical record from anywhere in the world. There is no technical reason why the NHS cannot do this. If need be, the patient could be given a password to permit a GP to see another Surgery’s record.”

New appointments

To avoid having patients clog up super-efficient hospitals, Sir Humphrey would have the Wachter review respond to concerns about a lack of joined up care in the NHS by announcing a set of committees and suggesting the Department of Health and NHS England appoint a new set of senior technologists.

Which is just what has happened.

Last week NHS England announced  “key appointments to help transform how the NHS uses technology and information”. [One of the NHS appointments is that of a Director of Digital Experience, which is not a fictional title, incidentally. Ironically it seems to be the most patient-facing of the new jobs.]

Said the announcement,

“The creation of these roles reflects recommendations in the forthcoming review on the future of NHS information systems by Dr Bob Wachter.

“Rather than appoint a single chief information and technology officer, consistent with the Wachter review the NHS is appointing a senior medical leader as NHS Chief Clinical Information Officer supported by an experienced health IT professional as NHS Chief Information Officer.

“The first NHS Chief Clinical Information Officer will be Professor Keith McNeil, a former transplant specialist who has also held many senior roles in healthcare management around the world, including Chief Executive Officer at Addenbrooke’s Hospital, Cambridge University Hospitals NHS Foundation Trust and Chief Executive Officer at the Royal Brisbane and Women’s Hospital in Australia.

“The new NHS Chief Information Officer will be Will Smart, currently Chief Information Officer at the Royal Free London NHS Foundation Trust. Mr Smart has had an extensive career in IT across the NHS and in the private sector.

“The NHS CCIO and NHS CIO post-holders will act on behalf of the whole NHS to provide strategic leadership, also chairing the National Information Board, and acting as commissioning ‘client’ for the relevant programmes being delivered by NHS Digital (previously known as the Health and Social Care Information Centre).

“The roles will be based at NHS England and will report to Matthew Swindells, National Director: Operations and Information, but the post-holders will also be accountable to NHS Improvement, with responsibility for its technology work with NHS providers.

“In addition, Juliet Bauer has been appointed as Director of Digital Experience at NHS England. She will oversee the transformation of the NHS Choices website and the development and adoption of digital technology for patient ‘supported self-management’, including for people living with long term conditions such as diabetes or asthma. Ms Bauer has led delivery of similar technology programmes in many sectors, including leading the move to take Times Newspapers online…”

Surely a first step, instead of arranging new appointments and committees, and finding ways of spending money on new technology, would be to put in place data sharing agreements between hospitals?

A former trust chief executive told me,

“In primary care, GPs will say the record is theirs. Hospital teams will say it is our information and patient representative groups will say it is about patients and it is their nformation. In maternity services there are patient-held records because it is deemed good practice that mums-to-be should be fully knowledgeable and fully participating in what is happening to them.

“Then you get into complications of Data Protection Act. Some people get very sensitive about sharing information across boundaries: social workers and local authority workers. If you are into long-term continuous care you need primary care, hospital care and social care. Without those being connected you may do half a job or even less than that potentially. There are risks you run if you don’t know the full information.”

He added that the Summary Care Record – a central database of every patient’s allergies, medication and any adverse reactions to drugs, was a “waste of time”.

“You need someone selecting information to go into it [the Summary Care Record]so it is liable to omissions and errors. You need an electronic patient record that has everything available but is searchable. You get quickly to what you want to know. That is important for that particular clinical decision.”

Is it the job of civil servants to make the simple sound complicated?

Years ago, a health minister invited me for an informal meeting at the House of Commons to show me, in confidence, a one-page civil service briefing paper on why it was not possible to use the internet for making patient information accessible anywhere.

The minister was incredulous and wanted my view. The civil service paper said that nobody owned the internet so it couldn’t be used for the transfer of patient records.  If something went wrong, nobody could be blamed.

That banks around the world use the internet to provide secure access to individual bank accounts was not mentioned in the paper, nor the existence of the CHAPS network which, by July 2011, had processed one quadrillion (£1,000,000,000,000,000) pounds.

Did the briefing paper show that the civil service was frightened by the apparent simplicity of sharing patient information on a secure internet connection? If nothing else, the paper showed how health service officials will tend, instinctively, to shun the cheapest solutions. Which may help to explain how the (failed) £10n National Programe for IT came into being in 2002.

Jargon

Radiation_warning_symbolNobody will be surprised if the Wachter review team’s report is laden with  jargon about “delays between technology being introduced and a corresponding rise in output”. It may talk of how new technology could reduce the length of stay by 0.1528 of a bed day per patient, saving a typical hospital £1.8m annually or 7,648 bed days.

It may refer to visions, envisioning fundamental change, establishing best practice as the norm, and a need for adaptive change.

Would it not be better if the review team spoke plainly of the need for a patient with a fractured leg not having to carry a CD of his x-ray images to different NHS sites in a carrier bag?

Some may await the Wachter report with a weary apprehension that its delay – even indefinitely – will make not a jot of difference. Perhaps Professor Wachter will surprise them. We live in hope.

Wachter review terms of reference.

Review of IT in the NHS

https://ukcampaign4change.com/2016/02/09/another-npfit-it-scandal-in-the-making/

Hunt announces Wachter review

What can we learn from the US “hospitalist” model?

More IT-based megaprojects derail amid claims all is well

By Tony Collins

If one thing unites all failing IT-based megaprojects in the public sector it is the defensive shield of denial that suppliers and their clients hold up when confronted by bad news.

It has happened in the US and UK this week. On the Universal Credit  project, the minister in charge of the scheme, Lord Freud, accepted none of the criticisms in a National Audit Office report “Universal Credit: early progress”.   In a debate in the House of Lords Lord Freud quoted from two tiny parts of the NAO report that could be interpreted as positive comments.

“Spending so far is a small proportion of the total budget … and it is still entirely feasible that [universal credit] goes on to achieve considerable benefits for society,” said Lord Freud, quoting the NAO report.

But he mentioned none of the criticisms in the 55-page NAO report which concluded:

“At this early stage of the Universal Credit programme the Department has not achieved value for money. The Department has delayed rolling out Universal Credit to claimants, has had weak control of the programme, and has been unable to assess the value of the systems it spent over £300 million to develop.

“These problems represent a significant setback to Universal Credit and raise wider concerns about the Department’s ability to deal with weak programme management, over-optimistic timescales, and a lack of openness about progress.”

And a shield of denial went up in the US this week where newspapers on the east and west coast published stories on failing public sector IT-based megaprojects.  The LA [Los Angeles] Times said:

As many as 300,000 jobless affected by state software snags

“California lawmakers want to know why Deloitte’s unemployment benefits system arrived with major bugs and at almost double the cost estimate. The firm says the system is working.”

The LA Times continued:

“Problems are growing worse for the state’s Employment Development Department after a new computer system backfired, leaving some Californians without much-needed benefit cheques for weeks.”

The Department said the problems affected 80,000 claims but the LA Times obtained internal emails that showed the software glitches stopped payment to as many as 300,000 claimants.

Now lawmakers are setting up a hearing to determine what went wrong with a system that cost taxpayers $110m, almost double the original estimate.

Some blame the Department’s slow response to the problems. Others point the finger at a Deloitte Consulting.

The LA Times says that Deloitte has a “history of delivering projects over budget and with problematic results”. Deloitte also has been blamed, in part, for similar troubles with upgrades to unemployment software in Massachusetts, Pennsylvania and Florida, says the paper.

“We keep hiring the same company, and they keep having the same issues,” said Senator Anthony Cannella.  “At some point, it’s on us for hiring the same company. It’s faulty logic, and we’ve got to get better.”

In 2003 California planned to spend $58m upgrading its 30-year-old unemployment benefits system. By the time the state awarded Deloitte the contract in 2010  the cost estimate had grown by more than $30m.

The Department handed out $6.6bn to about 1 million unemployed Californians in 2012. The software was expected to ease the agency’s ability to verify who was eligible to receive benefits.

Problems began when the Department transferred old unemployment data to the new system. The software flagged claims for review — requiring state workers to manually process them.

The LA Times says that officials thought initially the workload would be manageable, but internal emails showed the agency was quickly overwhelmed. Phone lines were jammed. For weeks, the Department’s employees have been working overtime to clear the backlog.

A poor contract?

In a contract amendment signed two months ago California agreed to pay Deloitte $3.5m for five months of maintenance and operations costs. Those costs should have been anticipated in the contract said Michael Krigsman, a software consultant who is an expert on why big IT-based contracts go awry. He told the LA Times:

“It’s a striking oversight that maintenance was not anticipated at the beginning of the contract when the state was at a much stronger negotiation position.”

By the time the middle of a project is reached, the state has no choice but to stick with Deloitte to work out bugs that arise when the system goes live, he said.

System works

Loree Levy, a spokeswoman for the Department, said the system is working, processing 80% of claims on time. As for the troubles, she said, “There is a period of transition or adjustment with any large infrastructure upgrade like this one.”

Deloitte spokeswoman Courtney Flaherty said the new California system is working and that problems are not the result of a “breakdown or flaw in the software Deloitte developed”.

System not working?

While there seems to be no project disaster in the eyes of the Department and Deloitte Consulting, some of the unemployed see things differently. One wrote:

“I am a contract worker who had to fight for my unemployment benefits. I won my case and yet they still cannot pay me… It’s been more than 3 weeks since I won my appeal and as of this moment, I am owed 13 weeks of back payments. To add insult to injury, they cannot send me current weeks to certify and they refuse to even try to help me to get back into the online system.

“I blame Deloitte, but it is California that carries the heaviest burden of fault… We’re nearing November and they still haven’t fixed an issue that began over Labor Day? Nonsense!

“This is untenable for everyone affected …We are owed reparations as well as our money at this point. It’s a funny word, affected. That means families and individuals are going hungry but can’t get food stamps or welfare. It means evictions and repossessed cars. It means destroyed credit, late fees, years of turmoil and shame for people already dealing with unemployment. Shame on you California.”

Another wrote:

“ … Not communicating is NOT an answer. Unemployed individuals caught up in the nightmare were told to be patient.  Rents and other expenses were still accumulating.  But [when you] add on additional fees: late fees, restoral fees, interest fees, etc…….you get the picture.

“Dear Governor Brown,

“Please reimburse me for all additional fees I’ve had to absorb to survive this fiasco.  You are going to make me payback any overpayments, but ignore the cost to the unemployed taxpayer.  This is  appears to unfair.  Perhaps Deloitte should pay us back from their contracted funds before they receive their final payment.  I am saving all of my receipts to deduct from my 2013 tax return.

“BTW Gov Brown – I am still waiting on additional payments as of today and DMV registration for my vehicle was due on 10/20/13.  Are you going to waive the penalty for late payment? Am I the only one with this question?”

Scrutiny

California’s state Assembly has set a date of 6 November 2013 for a hearing into the Department’s system upgrade.

“We’re going to look at EDD, the contractors and others to see how the system broke down so we can avoid this in the future,” said Henry Perea, chair of the Assembly’s Insurance Committee, which has oversight over the jobless benefits program.

On its website Deloitte says:

“Deloitte continues to help EDD [Employment Development Department] transform the level of service it provides to unemployed workers and improve the quality of information collected by EDD. The next time unemployment spikes, California should be ready to meet the increased demand for services.”

Massachutsetts IT disaster?

On the opposite coast the Boston Globe reported on an entirely separate debacle (which also involved Deloitte):

          None admit fault on troubled jobless benefits system

“… even with the possibility that unemployed workers could face months more of difficulties and delays in getting benefits, officials from the Labor Department and contractor, Deloitte Consulting of New York, testified before the Senate Committee on Post Audit that the rollout of the computer system was largely a success.

“‘I am happy with the launch,’ said Joanne F. Goldstein, secretary of Labour and Workforce Development, noting that she would have liked some aspects to have gone better.

“Mark Price, a Deloitte principal in charge of the firm’s Massachusetts business, acknowledged that software has faced challenges during the rollout, but insisted, ‘We have a successful working system today. ‘’’

NPfIT shield

A shield of denial was up for years at the Department of Health whose CIOs and other spokespeople repeatedly claimed that the NPfIT was a success.

Comment

If you didn’t know that Universal Credit IT wasn’t working, or that thousands of people on the east and west coasts of the US hadn’t been paid unemployment benefits because of IT-related problems, and you had to rely on only the public comments of the IT suppliers and government spokespeople, you would have every reason to believe that Universal Credit and the jobless systems in Massachusetts and California were working well.

Why is it that after every failed IT-based megaproject those in charge can simply blow the truth gently away like soap bubbles?

When confronted by bad news, suppliers and their customers tend to join hands behind their defensive shields. On the other side are politicians, members of the public affected by the megaprojects and the press who have all, according to suppliers and officials, got it wrong.

Is this why lessons from public sector IT-based project disasters are not always learned? Because, in the eyes of suppliers and their clients, the disasters don’t really exist?

None admit fault on troubled jobless benefit system

State fired Deloitte

Complaints continue despite claims system is under control

As many as 300,000 affected by California’s software problems

California’s predictable fiasco?

BT gets termination notice on £300m outsourcing contract

By Tony Collins

Sandwell Council has issued BT with a 30-day termination notice on a 15-year £300m outsourcing contract that has yet to reach its half-way point.

The metropolitan borough council says there are various defaults BT needs to resolve. Based at Oldbury, West Midlands, about five miles from Birmingham, Sandwell has been an outsourcing reference site for BT.

The company quoted Sandwell Council in its presentations that formed part of the bidding for Cornwall Council’s planned outsourcing work.

The “guaranteed” savings in Sandwell’s contract with BT appear to be based on a level of spending the council is not maintaining. One point of contention appears to be the council’s wish for BT to reduce its charges to the council in line with the authority’s lower levels of activity.

In June 2012 Sandwell submitted a change request that asked BT to recalculate the annual service charge because the service volumes delivered through the contract had reduced significantly.

The council wanted the recalculation to be based on a reduction in the workforce from around 7,400 in 2007 when the contract with BT was signed to 4,688 in mid 2012.

Government Computing quotes a council document on the dispute as saying

“A reduction in the workforce should have a corresponding reduction in volumes such as the size of the ICT estate, the payroll, HR support and budget holders. There have been volume reductions in invoices, the number of contracts administered and calls to the contact centre for some services.”

Sandwell’s 30-day termination notice to BT was issued on 16 July so it will expire around that time next month. The council says it is prepared to take back staff.

Sandwell council leader, Councillor Darren Cooper, told Government Computing: “Cabinet has approved a recommendation to start the process of ending our contract with BT. That termination will take effect in 30 days’ time unless BT puts right various defaults we have asked them to resolve.

“If we have to, I am confident we will be able to bring the services BT currently supplies to us back to the council and run them in the most effective way in future.”

Guaranteed

In 2007 BT and its joint bidder, outsourcing provider Liberata, had set out to run the council’s back-office functions at what was announced as a “guaranteed” reduced cost over the lifetime of the contract.

The deal was aimed at cutting costs and improving Sandwell’s IT infrastructure, HR, finance, payroll and customer services functions.

There was some success. The BT-led ‘Transform Sandwell’ team won the UK’s Best Customer Services Management Team at the National Customer Services Awards in December 2010.

BT built a 75,000 square foot office block for Transform Sandwell. It accommodated 400 employees of Transform Sandwell and a 300-strong customer service team working for BT.

Massive mistake?

Independent socialist councillor Mick Davies said “Someone somewhere has obviously made a massive mistake and the taxpayers of Sandwell will have to foot the bill… The writing seemed to be on the wall when BT’s partner in the project, Liberata, was dumped unceremoniously a couple of years ago.”

Sandwell Council’s deputy leader and cabinet member for strategic resources Councillor Steve Eling said: “In view of the current climate and public expenditure reductions, the council is engaging with its partner to determine services that are needed over the medium term and to reduce the overall costs in light of public spending reductions.”

Technologies used in the Transform Sandwell contact centre have included Verint Impact 360, Siebel CRM and Nortel Contact Centre 6.0.

A BT spokesman told the Halesowen News

“BT continually looks at ways to improve the service it provides to its customers. The original contract was signed in 2007 and as is normal with long-term partnerships BT constantly looks at ways to service the changing needs of both the council and citizens of Sandwell.”

BT told Government Computing it “has throughout – and remains – fully committed to delivering the commitments it made through the Transform Sandwell Partnership.”

The European Services Strategy Unit which has carried out detailed research on outsourcing contracts lists some of the terminated and reduced local authority strategic partnership contracts.

Sandwell has 72 councillors, 67 of which represent Labour.

Comment

At some point in a 10 or 15-year outsourcing contract a major dispute seems almost inevitable because a supplier’s business objectives will rarely change when the council’s priorities change.

BT’s deal with Sandwell was signed in 2007 – as was Southwest One’s deal with IBM – at a pre-austerity period.

Now that councils have been making, and continue to make, radical savings, they want the flexibility to cut their outsourcing costs too. But it may not be in the supplier’s interests to take profits that are much lower than expected.

No such thing as a free lunch

How can the business interests of outsourcing providers and their council clients ever completely align and move in time like synchronised swimmers?

The growing number of disputes in local authority outsourcing deals suggests that councils are not properly weighing up the risks when they sign deals.

Perhaps small groups of ruling councillors – such as those at Barnet – are too easily persuaded by the “guaranteed” savings on offer at the start of a contract.

There is no such thing as a free lunch. But try telling that to council Cabinet councillors who have cartoon-character pound signs in their eyes in the Disney period before a big outsourcing contract is well underway.

Let’s hope BT and Sandwell kiss and make up. It looks like the lawyers are already in the middle of them, though; and at whose expense?

Sandwell and BT consider end of strategic partnership – Government Computing

A paperless NHS by 2018? Could it ever happen?

By Tony Collins

The NHS should go paperless by 2018 to save billions, improve services and help meet the challenges of an ageing population, Health Secretary Jeremy Hunt will say today.

In a speech to the Policy Exchange this evening, the Health Secretary will say that patients should have compatible digital records so their health information can follow them around the health and social care system.

This would mean, says the DH, that in most cases, whether patients needs a GP, hospital or a care home, the professionals involved in their care could see patient histories “at the touch of a button”.

Hunt’s speech comes as two reports are also published which – says the DH – demonstrate the potential benefits of making better use of technology.

The DH says a report by PriceWaterhouseCoopers on the potential benefits of better use of IT “found that measures such as more use of text messages for negative test results, electronic prescribing and electronic patient records could improve care, allow health professionals to spend more time with patients and save billions”.

But the DH press release – and coverage of it by the BBC – does not mention the reservations in Pwc’s report.

Pwc says it could take 10 years or more for the NHS to derive the full benefits from some of the priority actions and further actions mentioned in its report.

Pwc also says that “significant further work is required to further substantiate some of the evaluations of potential benefit, and especially the evaluations of potential financial benefit. This work should be completed before the broad implementation of the recommended actions commences…”

A National Mobile Health Worker report, also published today, was a pilot study on introducing laptops at 11 NHS sites.

On the way towards the 2018 goal, Hunt will say that he wants to see:

– By March 2015 – everyone who wishes will be able to get online access to their own health records held by their GP.

– Adoption of paperless referrals – instead of sending a letter to the hospital when referring a patient to hospital, the GP can send an email instead.

– Clear plans in place to enable secure linking of these electronic health and care records wherever they are held, so there is as complete a record as possible of the care someone receives.

– Clear plans in place for those records to be able to follow individuals, with their consent, to any part of the NHS or social care system.

– By April 2018 – digital information to be fully available across NHS and social care services, barring any individual opt outs.

The NHS Commissioning Board is leading implementation and it has set a clear expectation that hospitals should plan to make information digitally and securely available by 2014/15.

This means that different professionals involved in one person’s care can start to safely share information on their treatment. This is set out in the NHS Commissioning Board’s recent publication ‘Everyone Counts: planning for patients in 2013/14′.

Hunt says:

“The NHS cannot be the last man standing as the rest of the economy embraces the technology revolution.

“It is crazy that ambulance drivers cannot access a full medical history of someone they are picking up in an emergency – and that GPs and hospitals still struggle to share digital records.

“Previous attempts to crack this became a top down project akin to building an aircraft carrier. We need to learn those lessons – and in particular avoid the pitfalls of a hugely complex, centrally specified approach.

“Only with world class information systems will the NHS deliver world class care.”

The Government recently announced it would be making £100 million available to NHS nurses and midwives to spend on new technology.

Challenges

The Pwc report is not an analysis of the costs of introducing shared electronic records across the NHS. But it does mention some of the challenges. It says:

“There are delivery risks to be addressed before the potential benefits can be realised.”

This is Pwc’s list of challenges of introducing better IT in the NHS, especially a shared electronic patient record:

– “The realisation of the potential benefits will depend on the concerted action and commitment of bodies from across the health and social care system.”

– “… the maximum possible benefits presented by this review will not be realised unless key supporting elements are put in place and unless appropriate and timely investments are made.”

–  “The availability of funds to cover one-off investment costs in technologies, information gathering or reworked organisational processes.”

– “The willingness of system bodies to adopt the technologies or commit to information gathering and use.”

–  “The clear and concise documentation of the benefits achieved and challenges faced by pilot programmes or early adopters of technologies or information protocols, to support other organisations in implementing actions in a cost-effective and efficient way.”

– “Strong and positive leadership to promote use of information and technology, and prioritise the commitment of resources and time to it and commitment of bodies from across the health and social care system.

– “The incentivisation of the adoption of the proposed actions, particularly when coordinated system-wide action is required.”

– “Measures to make contracting for the provision of systems and services as easy, quick and cost-effective as possible; and

– “The development of new or revised robust governance processes to not only support programme delivery but scrutinise the delivery of benefits.”

Comment:

On the face of it Hunt’s good intentions and the DH’s press release on his speech are little more than political rhetoric.

Indeed it appears that Hunt commissioned the Pwc report to give an independent voice to a political announcement. Pwc concedes in its report that it was commissioned to highlight the “potential benefits that could be achievable through the more efficient and effective use of information and technology in the NHS and social care before any action is taken”.

It is inconceivable that the NHS will be paperless or have shared electronic patient records by 2018. Each ward in every major hospital has a range of paper forms. These will take an unknown number of years to standardise for the purposes of electronic records; and shared electronic records will not take place across the NHS without enormous changes in culture and practice, and initial investments.

Nearly every secretary of state for health, shortly after coming to the post, is given a draft speech by his officials about the NHS’s having shared electronic patient records by a distant date.  A new government will be in power by 2018 and Hunt’s promise in January 2013 will have long been forgotten.

Yet Hunt’s announcement is still welcome because it will continue to add energy to the very slow move to shared electronic records.

It is astonishing in a technological age that patients with chronic diseases such as diabetes, or have complex health problems, can be treated at different specialist centres in various parts of the UK without their records being shared. A patient can be seen within a week in two different hospitals without each hospital sharing the patient’s most recent notes and diagrams.   This problem has to be grabbed by the throat – but not with a centralised system or database as proposed in the NPfIT.

Hunt recognises this. He talks of the need for records to be linked – from where the data currently resides. But Hunt needs to say how it will happen, and provide some limited investment for it to happen – tens and not hundreds of millions of pounds.

The political will is there – but without the means to achieve a shared electronic record it may never happen.

Pwc report

Jeremy Hunt challenges the NHS to go paperless by 2018 – DH press release

Going paperless would save the NHS billions – BBC online

Shared services disaster: a gain for some officials and ERP suppliers?

By Tony Collins

Today an impressive report by the National Audit Office shows in detail how various shared services ventures in central government have, over time, cost rather than saved money.

Five shared services centres studied by the NAO have cost £1.4bn so far; they were supposed to have saved £159m by 2010-11 but the net cost has been £255m. Setting up the centres since 2004 has been good, though, for some suppliers (and officials who wanted to gain new skills in Oracle and SAP enterprise resource planning systems).

The Cabinet Office has now intervened and plans a new shared services strategy, based on the DWP [Oracle v11i ERP) and Department for Transport [SAP ERP] offering independent major shared service centres to departments and agencies.

One of the urgent drivers for the Cabinet Office’s publishing a new strategy in July 2011 was that three shared service centres face an investment of £47m to upgrade their Oracle ERP systems before November 2013, says the NAO.

“The current version of Oracle will not be supported by the manufacturer past this date,” says the NAO. “This means that if their core system fails, there is a high risk that they would not be able to re-instate it quickly. This gave the Cabinet Office an opportunity to see if it could derive better value-for-money options for shared services.”

Saving £32m on Oracle upgrade costs?

The Cabinet Office expects its new plans to save £32m on Oracle upgrade costs, says the NAO. Indeed the Cabinet Office has questioned whether departments need to use large ERP systems. It acknowledges that smaller, simpler software solutions may be appropriate, says the NAO.

Civil servants in search of new ERP skills rather than saving money?

The NAO report hints that civil servants at the five service centres might have wanted to implement new Oracle or SAP ERP software more than to save money.

Says the NAO: “The [shared service] Centres have prioritised increasing the number of customers or implementing new software, rather than working with existing customers to drive efficiency… There are other options to reduce costs in addition to increasing the number of customers or implementing a new ERP system.”

Indeed the NAO questions why the service centres bought big and expensive ERP systems that are now under-used, without looking at smaller and simpler accounting packages.

“These ERP systems [installed at five shared service centres studied by the NAO] are complex and it is not easy to modify them when needs change, such as when an organisation is restructured or processes are redesigned.

“We found the Centres are only using a small part of the capability their ERP systems provide. The systems are capable of handling larger volumes of transactions and more services and it is not clear why such expensive solutions were bought. Other smaller and simpler accounting packages were not looked at to see if they may have provided the required functionality.”

Concludes the NAO:

The shared services initiative has not so far delivered value for money for the taxpayer. Since the Gershon Review recommended the creation of shared services in 2004, the Government has spent £1.4 billion against a planned £0.9 billion on the five Centres we examined.

“By creating complex services that are overly tailored to individual departments, government has increased costs and reduced flexibility. In addition, it has failed to develop the necessary benchmarks against which it could measure performance. The Cabinet Office has issued an ambitious new shared services strategy to address these issues.”

Failing to standardise ways of working

Shared services are about standardising ways of working, not running separate services for every client but the NAO found that the five centres replicated old ways of working.

“The services provided are overly customised. We found shared services to be more complex than we expected. They are overly tailored to meet customer needs. This limits the ability for the Centres to make efficiencies as they have an overhead of running multiple systems and processes.”

Big cheques to big ERP suppliers?

The NAO said departments have wasted money on ERP systems – and now plan to spend more on DRP systems.:

“The software systems used in the Centres have added complexity and cost. All the Centres we visited use Enterprise Resource Planning (ERP) software systems. These are complex and have proven to be expensive. They are designed to manage all the information generated by an organisation by using standard processes. These systems work most effectively with large volumes of heavily automated transactions.

“With a lack of scale and usage in some Centres, limited standardisation and low levels of automation, the cost to establish, maintain and upgrade these systems is high. As a result two Centres intend to totally re-implement their existing systems with simpler, standard ERP software, despite the significant investment already made.

“All the Centres acknowledge they need to simplify and standardise their systems and reduce customisation.”

Cabinet Office took a back seat instead of driving sensible change

Says the NAO: “The Cabinet Office and Civil Service Steering Board could have done more to ensure shared services were implemented appropriately. While the Cabinet Office led by example in initiating their own shared service arrangements, more could have been done to challenge the performance achieved by customers and providers.

“They could have established reliable cost and performance benchmarks and done more to document best practice and lessons learned for customers. Also, they could have done more to remove the barriers to departments and agencies joining shared services.

“The Cabinet Office relied on a collaborative model of governance, which was consistent with the role of central government at the time. Under this model it was left to individual departments to implement shared services and eight shared services have been established. There has been little actual sharing of services between departments…”

Should officials have been forced to take part in shared services?

“Departments have struggled to fully roll-out shared services across all their business units and arm’s-length bodies,” says the NAO. “This is because participation has largely been voluntary. Of the five Centres we examined, three had not attracted the customers they had expected and two had potential spare capacity of 50 per cent.”

Cabinet Office is trying to repair the damage

Using DWP and DfT centres the Cabinet Office plans to have two independent shared service centres and a host of sub centres. But the NAO suggests the strategy may fail unless the Cabinet Office mandates the use of the centres. [But there’s no point in mandating change unless working practices are standardised.  If they cannot be standardised shared services may end up – again – costing more.]

Says the NAO  “The Cabinet Office did not have the powers to mandate shared services. Without a mandate, we do not think that coherent shared services are likely to be achieved. If there is an overall value-for-money case for the taxpayer, the Cabinet Office should seek appropriate authority to mandate the shared services strategy and its implementation.

“The Cabinet Office should also make sure that there is clear accountability for implementing its new shared services strategy.”

MPs ignored

“…the Committee of Public Accounts set out recommendations (on shared services) for the Cabinet Office in 2008,” says the NAO. “None of the recommendations have been fully implemented. All are relevant to shared services today.”

The five shared service centres under NAO scrutiny – and their ERP

• The Department for Environment, Food and Rural Affairs (Defra) Centre provides services to 16,000 customer users (full-time equivalents)7 from the Department and 13 of its agencies. Enterprise Resource Planning System: Oracle 11i, upgrade to Oracle v12 in 2012-13.

• The Department for Transport (DfT) Centre provides services for 14,000 customer users from the Department and four of its agencies. SAP ERP.

• The DWP Centre provides services for 130,000 customer users from the Department, the Cabinet Office and the Department for Education. Main site Norcross. ERP system: Oracle 11i, upgrade to Oracle v12 planned in 2012-13.

• The Ministry of Justice Centre manages two separate systems – serving 47,000 customer users for its National Offender Management Service and 27,000 for the Home Office. Enterprise Resource Planning System: Oracle 11i, upgrade to Oracle v12 in 2012-13 and plans to completely re-implement its system to remove all customisation.

• Research Councils UK Centre provides services to 11,000 customer users from seven Research Councils. ERP is Oracle 12.

Three major shared service centres not under NAO scrutiny

• The Ministry of Defence’s Defence Business Services, which was established in July 2011. ERP is Oracle 11i. An upgrade to Oracle v12 in planned for 2012-13.

• The Department of Health NHS Shared Business Services Ltd (joint venture with Steria) which does not provide services to central government. (ERP is Oracle v12)

• HMRC which set up a shared service centre – but no other departments used it. ERP is SAP.

Comment:

Anyone reading the NAO report could be forgiven for thinking that civil servants setting up shared service centres have aimed to fail, perhaps to prove to ministers that major change within central government is a bad idea. We doubt this.

What is more likely is that civil servants, encouraged by some suppliers, thought it a good idea to buy big ERP systems from which they thought savings would naturally flow. But big has not proved to be better. When will this message get through? Isn’t it time for civil servants to stop throwing money at big suppliers?

[And there may be some substance in the NAO’s hint that some civil servants have preferred to work on big ERP systems rather than save money. Having strong ERP skills is an insurance against job loss.]

NAO report  

FBI chooses Accenture for IT project to modernise its HR systems

By David Bicknell

Yesterday I mentioned the challenges that the FBI is having in bringing a case management IT project in on time.

It’s good to know then that the FBI will now be assisted in its ongoing delivery of IT by Accenture.  Not for the case management project, but for an enterprise resource planning (ERP) system  to support the FBI’s Human Resources Information System (HRIS).

The award, under a  General Services Administration IT schedule that provides technology support services to the FBI through a ‘Blanket Purchase Agreement’ (BPA) plus four task orders’ will enable Accenture Federal Services to oversee selection, installation, testing and support to the agency’s HR systems.  Accenture also will complete a fit gap analysis to determine possible future costs to replace the FBI’s current HRIS systems.

Accenture said that by modernising its Human Resources information System, the FBI ‘will be able to increase effectiveness and streamline processes. These improvements will help the FBI develop a modern, on-demand system for accessing personnel information.’

The contract, which includes one base year with four option periods, also requires Accenture to submit a report with recommendations the FBI can use to determine whether to customise software, re-engineer business processes or combine both options to support future needs.   
 
Accenture, as its press release puts it, will also be ‘eligible to receive additional task orders under the BPA.’