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Audit Reveals $28 Million Spent on Failed Electronic Medical Record Program in California Veteran Homes

For immediate release:

(Sacramento, CA) – An audit conducted at the request of Assemblymember Jacqui Irwin (D-Thousand Oaks) was released today and concluded that the $28 million Enterprise-Wide Veterans Home Information System (EwVHIS) developed for the Department of Veterans Affairs (CalVet) to integrate medical records amongst the eight state-run veteran homes failed to meet any of its core objectives.

“Today I find myself deeply disappointed by the Auditor’s findings which confirm the concerns posed in my audit request of the EwVHIS system,” said Assemblymember Irwin. “The mismanagement and lack of transparency surrounding this failed project erodes the trust that taxpayers place in state government. I am committed to using this as an example to spur needed reform of our IT project management practices, and conducting vigorous oversight of similar programs going forward.”

CalVet began the Enterprise Wide Veteran Homes Information System (EwVHIS) Project in 2007, citing a need to improve the efficiency of patient care and reduce reliance on paper medical records for the thousands of Veterans served by their eight state-run facilities.

The auditor’s report contains testimony and metrics demonstrating the system’s instability and lack of functionality that remains. In many cases, the system hindered staff effectiveness and overall patient care, and eventually the implementation was terminated as it became a danger to patients. This faulty program was compounded by poor management and oversight from CalVet and the Department of Technology, which is responsible for overseeing IT projects among state agencies.

“As Chair of the Assembly Veteran Affairs Committee, I look forward to partnering with the new leadership of CalVet and the Department of Technology to address the underlying causes of this failure and implement the recommendations of the Auditor’s report.  I am encouraged by Secretary Imbasciani’s response to the Audit findings and his efforts to reform the Department. Our veterans deserve better, and CalVet must efficiently deliver the benefits and services they have earned,” concluded Irwin.

The Auditor’s recommendations include the need for CalVet to better define IT management responsibilities, ensure preparation and execution of all project management plans, and establish a policy to use separate contractors for oversight functions. Secondly, the Auditor recommends that the Department of Technology summarize its involvement and document key actions taken during IT contract disputes and negotiations, and to ensure proper oversight services take place for each project.