The Health Service Executive (HSE) has warned there may be delays in payments to some of its suppliers over the coming period as it implements a new integrated financial management system (IFMS) across the organisation.
The health body has acknowledged that there are currently some delays being experienced in the processing of around 25,000 supplier invoices in some parts of the institution.
"Most of these invoices relate to transactions which were initiated in multiple old legacy systems and will now be completed for payment under the new single integrated system," the HSE said in a statement.
The new €82m IFMS aims to act as a modern financial management and procurement system for the entire health sector, according to the project page on the HSE's website.
It will replace multiple, fragmented legacy systems and will be rolled out to all health and social care services provided directly by the HSE, as well as voluntary organisations exclusively or almost exclusively funded by it and others that receive funding from it, along with Tusla.
The system went live in the HSE East area and across its corporate services on July 3rd as part of the first implementation group phase.
This includes Connolly Hospital in Blanchardstown, Naas General Hospital, St Coluncille’s Hospital in south Dublin.
Tusla is also included in the initial rollout phase, along with other HSE corporate services units.
The next phase, which includes HSE West, will not begin until January, with the rollout continuing across other regions and services until 2025.
"At this point no payments have been delayed and payments have been issuing to suppliers," the HSE said.
"However unfortunately there may be some delays in payments to suppliers as we fully transition and ramp up processing on the new system in the HSE East and Corporate Services."
"All other HSE areas outside the East are unaffected, and invoice processing and payments are operating as normal."
The HSE is apologising to any supplier who experiences inconvenience or difficulties as a result of the issues and says it is working to minimise any delays.
It is understood that this has included contacting more than 200 key suppliers to explain the situation to them.
"We are working to prioritise invoices from suppliers who may be facing particular pressures," it added.
It is understood that the backlog in processing of invoices has arisen not because of a problem with the new technology, but due to an underestimate of the rate at which invoices, which previously were processed locally, would arrive into the new central payments system.
Every year the HSE processes around 2.1m invoices from suppliers.
"The new IFMS has streamlined ordering and invoicing processes which will have benefits for both the HSE and its suppliers," the HSE said.
"In terms of wider benefits, the system will bring better financial reporting and forecasting and enabling improved financial management, governance, compliance and transparency, and a better overall financial control environment."
It is not the first hurdle experienced during the rollout of the project.
Last year a new contractor was brought in to build the system after a contract with the previous supplier was terminated.
Minister for Health, Stephen Donnelly, has previously cited the need for a significant improvement in financial systems in the HSE.
The implementation of the new IFMS system comes as spending in the health service this year is running €328m or 2.9% ahead of what was budgeted to that point at the end of June.
Earlier this week, the Minister for Finance Paschal Donohoe said there were signs the figure would grow.
