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The next healthcare scandal?
Read more about: Government, Health 
The latest in a succession of headaches for Mary Harney is now brewing with the iSoft affair: the question is going to be why the Health Service Executive signed a €56 million information systems contract with a company whose accounts were already attracting doubt at the time. The Irish Times provides the Irish angle on the affair, which also concerns the UK National Health Service and its £6.2 billion contract with the company:
In the Dáil last November Fine Gael leader Enda Kenny demanded to know why the HSE had signed the contract with iSoft on a Saturday. The HSE subsequently explained that a draft contract was agreed with iSoft in November 2003 and when it (the HSE) came into being, it commissioned an external evaluation to ensure it would provide value for money. The HSE, it said, pressurised iSoft to maintain the prices previously agreed and in return iSoft agreed it would do so if the contract could be completed by April 30th, 2005, which happened to be a Saturday.
For the big picture, go to the Guardian’s story — which amongst other things reveals that it was looking at the company’s accounts as early as 2004, but was prevented from reporting on it by a court order:
Separately, the Guardian has given notice to iSoft that it will apply to the high court to remove a gagging order secured by the company to halt a Guardian investigation into its accounting practices in 2004. Breach of confidence and defamation laws meant the dispute ended in the Guardian being unable to publish information from two iSoft-related documents.
As a result, the HSE didn’t have the advantage of knowing that something was up, but the strange deadline to sign the contract should perhaps have been a warning sign: it certainly looks like the company was in a hurry to get some revenue on its books, and indeed the scandal now surrounding the company relates to its revenue recognition practices. It’s not inconceivable that the HSE contract was a key plank in keeping the company’s accounts looking good for a little while longer. And so the ever-present scandal ingredient: what did they know and when did they know it?
The HSE have been all over the radio this morning reassuring everyone that the contract has many safeguards built in, on Newstalk we were assured that includes the eventuality of iSoft going out of business. I am aware of bankruptcy etc but doesn’t a bust company pays no bills (in practice more than in law)?
On a side note; nice work by Johnny Gormley getting a mention to PPARs, E-Voting and Lorenzo while talking about this project.
I didn’t know till further reading today that iSoft is a descendant from the consulting side of KPMG. And I agree with your top point — $10 million already spent on a system from a bankrupt company is $10 million down the drain (assuming that’s all the HSE has handed over, as it says).
On reading this electronic voting, ppars, the national stadium debacle are just some of the things that come to mind. I am sure others can add to this list of waste of public money. For a fraction of what has been wasted over the last number of years projects such as the delivery of public Radiotherapy to the South East could have been delivered.
add to this list of waste of public money.
Indeed
Aer Lingus
Bus Eireann
ESB
CIE
Bord Na Mona
the list goes on.
i would love to see a list of the projects on which wads of the peoples money has been wasted
it would make a smashing poster or leaflet
at the top “Wanted ”
for wasting the peoples money on ……details
if you know the wherebouts of these morons please contact ???
what will make more people come out to vote next time ?
another poster no prizes for the best one -go harvey go..