Concerns voiced over Ireland’s iSoft deal

The main Irish opposition party, Fine Gael, has raised concerns over the recent financial difficulties of iSoft and the £38m (€56m) contract it was awarded by the Irish government in April 2005 to upgrade the country’s healthcare IT.

Fine Gael has also questioned the circumstances in which a major contract was agreed verbally and then signed outside office hours on a Saturday.

Dr Liam Twomey, health spokesperson for the party, called on the Irish prime minister to confirm whether an IT project review group established at the end of last year was taking into account the software group’s investigation by the UK Financial Services Authority and the way in which the contract with the Health Services Executive was awarded.

The HSE is responsible for providing health and personal social services to everyone living in Ireland.

"It is by no means clear what will become of this contract if iSoft’s financial difficulties worsen or the outcome of an investigation by the Financial Services Authority in the UK uncovers breaches of accounting standards at the company," said Dr Twomey.

"As well as the ongoing troubles of iSoft there are concerns around the original signing of the contract which, as Fine Gael revealed last November, took place on a Saturday, 30 April 2005, coinciding with iSoft’s end of financial year," added the Irish MP (Teachta Dála).

iSoft were contracted last year to roll out electronic patient record software across all healthcare organisations and sites run by the HSE, using its iPM integrated patient management software. The company had been chosen as far back as 2003 to supply new software, but the signing of the contract was delayed due to government-level reorganisation of the health service.

In November 2005, Enda Kenny, leader of Fine Gael, expressed concern that the contract between the HSE and iSoft was signed on a non-business day, and agreed verbally the day before following an emergency high-level meeting between the Department of the Taoiseach, the Office of the Attorney General and the then healthcare executive, the Department of Health and Children.

Fine Gael leader Enda Kenny has now echoed calls from his health spokesperson for clarification, asking the government to confirm "if the irregular handling of this €56 million contract is part of the investigation carried out by UK watchdogs."

Responding to Fine Gael’s calls, a spokesperson for iSoft told E-Health Insider: "We would strongly encourage Fine Gael to look more closely at iSoft’s results, which in fact show a £13.3m profit from current trading operations because a conservative ‘goodwill impairment’ charge was applied by iSoft in relation to previous acquisitions. This goodwill impairment charge has had no effect on the cash position of the company.

The spokesperson added: "In fact iSoft revenues increased 8.4% in what has been one of iSoft’s most challenging financial years so far."

The company spokesperson added that an independent review, conducted by the Irish Department of Finance, said on 1 September 2006: "The review team are satisfied with the manner in which these (iPM) implementations are being carried out and have recommended that they be fully completed during 2006."

The HSE said in a statement that it was monitoring “very closely the developments within the company”. It said that the contract with iSoft included significant safeguards to protect the HSE’s interests, “ €10m has been spent over the past two years, with the remaining value of the contract tied to delivery of targets”.

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Ireland suspends two national health IT projects