Friday, July 30, 2004

Pulling the Plug on a $427 Million Computer Error

At least they cut our losses.

The Department of Veteran's Affairs spent millions on a new computer system for its hospitals. If you think you have problems with your desktop at home, think about what the VA got for it's money.

It delayed surgeries, triggered a Congressional investigation, and forced five top officials to resign.

The VA finally pulled the plug on the system that was supposed to cost taxpayers $472 million when finished.

But it never got beyond one hospital-Bay Pines VA Medical Center in Tampa, Florida.
Good thing.

Hospital employees were left to themselves to figure out how the system was supposed to work. They never got the training the contractor promised. That meant the hospital's suppliers never got paid, orders for medical supplies never got placed, and surgeries got delayed.

The company that won the contract for the system is called BearingPoint. And even though they never taught VA employees how to use the system, they collected $200,000 in incentive bonuses for keeping the project on schedule.

The only things that didn't keep on schedule seemed to be bill payments, supply orders, and patient surgeries.

Now that the VA has scrapped the system, they don't know if they'll get any of your tax money back.

They do know they're going back to the old computer system. At least it's paid for.

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