PROVIDENCE – The R.I. Auditor General released a report Thursday that found the state has paid $402.3 million for a new unified computer system that determines eligibility for social services and established the statewide health care exchange, known as HealthSource RI.
Most of the funds were derived from federal grants, while 13 percent came from state sources.
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The social services system, commonly called UHIP – the Unified Health Infrastructure Project – was the single largest technology project adopted by the state, according to Auditor General Dennis E. Hoyle. But the state lacked a sufficient project management structure to effectively guide it through implementation, he said.
The failed introduction of the new system resulted in lengthy backlogs for applications for state assistance, and required a recent surge in new hiring – using a $27 million credit provided by computer vendor Deloitte – to reduce the backlog of unprocessed applications.
From its inception five years ago, the computer project had 41 changes in scope, and the cost has expanded through those amendments, Hoyle reported. The state used consultants to assist it in managing the contract with system developer Deloitte. But it did not clearly define a single point of contract authority to oversee the program, he found.
“There was a likely near-term over-emphasis of purported savings that would accrue from the implementation of the UHIP/RIBRIDGES system. These estimated savings were used to defend and support the increases in estimated project costs,” Hoyle wrote. “The reality, which has since been demonstrated, is that costs actually increased in the near term, and the expected degree of precision in eligibility determinations has not been achieved. In fact, caseloads have increased significantly due to ineffective or inoperable system processes to remove ineligible individuals, resulting in significant unanticipated costs.”
As part of his 33-page review report, Hoyle recommended the state establish a task force to develop best practices for future IT projects, which could be incorporated into requests for proposals, contracts and the state’s operating procedures concerning project oversight.
In a response, the state’s Department of Human Services acting director, Eric J. Beane, said Thursday the state has already taken steps to shore up its management of the project.
A department spokeswoman said the auditor general’s findings were largely consistent with an earlier report prepared by Beane and delivered in February to state officials.
Said Beane: “We are in the process of addressing many of these items already, and we look forward to continuing to work with our partners in government to ensure the state’s IT projects meet the needs of Rhode Islanders.”
Mary MacDonald is a staff writer for the PBN.
