HSE Suppliers Likely to Face Payment Delays Due to Implementation of New System
The Health Service Executive (HSE) has issued a warning to suppliers, stating that there may be delays in payments as the organization implements a new integrated financial management system (IFMS). The HSE has acknowledged that some delays are being experienced in processing supplier invoices in certain parts of the institution. These delays are primarily due to the transition from multiple old legacy systems to the new single integrated system.
The €82 million IFMS aims to modernize financial management and procurement across the entire health sector. The system will replace fragmented legacy systems and will be gradually implemented in all health and social care services provided by the HSE. This includes voluntary organizations funded by the HSE, as well as those that receive funding from it, such as Tusla.
The new system went live in the HSE East area and corporate services on July 3rd as part of the initial implementation phase. The next phase, involving HSE West, is scheduled to begin in January 2023, with the rollout continuing across other regions and services until 2025.
Currently, no payments have been delayed, and the HSE assures suppliers that payments are being issued as normal. However, some delays may occur as the HSE transitions and ramps up processing on the new system in the HSE East and Corporate Services. Invoice processing and payments in all other HSE areas outside the East are unaffected.
The HSE sincerely apologizes for any inconvenience or difficulties experienced by suppliers due to these issues. They are actively working to minimize any delays and have already reached out to more than 200 key suppliers to explain the situation. Invoices from suppliers facing particular pressures are being prioritized.
It is important to note that the backlog in invoice processing is not a result of technical problems with the new system. Instead, it is due to an underestimation of the volume of invoices previously processed locally that would now be channeled into the new central payments system. The new IFMS will streamline ordering and invoicing processes, benefiting both the HSE and its suppliers. It will also provide better financial reporting, forecasting, improved financial management, governance, compliance, transparency, and overall financial control.
This implementation of the IFMS comes at a time when spending in the health service is running ahead of budgeted figures. By the end of June, health service spending for the year was €328 million or 2.9% higher than expected. The Minister for Health, Stephen Donnelly, has previously emphasized the need for significant improvements in the HSE’s financial systems.
The HSE recognizes the importance of promptly resolving any payment delays and is committed to ensuring a smooth transition to the new system. They are working diligently to rectify the situation and minimize any future disruptions. Suppliers are encouraged to reach out to the HSE if they have any concerns or require further information.
In conclusion, while the implementation of the new IFMS has encountered some delays in payment processing, the HSE is actively addressing these issues and working towards a resolution. They remain dedicated to providing the necessary support to suppliers during this transition period.
