SA Health documents released under Freedom of Information confirm there has been a further $30 million blowout in the EPAS IT project.
Documents presented to the December 2013 meeting of the EPAS Program Board state:
“…the budget to activate Pt Augusta and Daw House has already been exceeded by $18.9 million. The current forecasts of costs to the end of December are estimated to be $30.1 million in excess of the approved budget for the activation of Noarlunga, Pt Augusta and Daw House.”
These Board documents also list the following ‘risks’ in EPAS which could lead to a further blowout in costs of up to $64 million:
|Risk/Opportunity||Est TCO impact ($m)|
|LHN backfilling for training||2-3|
|Benefits realisation – systems decommissioned||15-18|
|Benefits realisation – LHN offsets||6-20|
|Benefits realisation – eHealth offsets||6-20|
|Total possible impact||32-64|
“These further blowouts in the EPAS budget come in addition to the $14 million blowout (from $408 million to $422 million) already acknowledged by the Weatherill Labor Government,” said Shadow Health Minister Rob Lucas.
“At this stage, the total EPAS blowout is $44 million, but it could be as high as $108 million if the latest worst case estimate eventuates.
“These cost blowouts have occurred as the ‘easier’ hospitals have had EPAS installed. The potential further cost blowouts when the bigger and more complex hospitals are tackled, such as The Queen Elizabeth Hospital, the Royal Adelaide Hospital, Flinders Medical Centre and the Lyell McEwin Hospital, are significant.
“EPAS was originally budgeted to be installed in 12 South Australian sites by this month but the latest estimates are that it has been delayed by at least 12-18 months.
“The monthly ‘burn’ costs of EPAS are about $2-3 million each month which will again add to the cost blowout.
“EPAS has turned into a financial disaster and is a stark symbol of the financial mismanagement and incompetence of Minister Snelling and the Weatherill Labor Government.
“This EPAS disaster comes hot on the heels of more than $40 million being wasted by the Weatherill Government on Oracle, another Health IT project.
“At a time when Premier Weatherill and Minister Snelling are saying the budget is tight and services must be cut, how can they justify wasting possibly more than $100 million on the blowout of an IT project?”