By Mario deSantis, February 10, 1999

Yesterday afternoon, my son James e-mailed from Regina the article "SAHO getting new computer system"(1), and in reading it, I could not help but provide this commentary. After mismanaging healthcare payroll for at least the last decade and allocating some millions of dollars into the now defunct and secretive Stargarden(2) payroll project, SAHO(3) is finally on its way to implement a new payroll system compatible with the reformed methods of delivering healthcare.

 The new payroll system has been bought at a cost of  about $4 million dollars from SAP Canada, a mere $1 or $3 million dollars above the expected cost as stated in the resolution passed at the SAHO Convention held in the Spring of 1997. SAHO estimates that the implementation of this . new centralized payroll system will cut down related costs by $38 million over 10 years, and that the new equipment will drive up the users' cost by 60 per cent. In our supposed Internet Economy(4) characterized by "increasing returns" and  "diminishing costs", our healthcare leaders are still implementing obsolete and traditional economies of scale. The figure of $38 million, reminds me of another supposed and minimum savings of $43 million expected by the implementation of the obsolete 1995 healthcare new system architecture(5) (6) (7). This is the way our healthcare leaders create wealth in the province: cutting down the cost of previous administrative catastrophes with new administrative systems in a vicious long term cycle, more catastrophes, more systems and more future savings of millions of dollars of taxpayer money. In accordance to the expedient mind set of our leaders we always implement policies to save money, the problem is that we never create new wealth either.

Endnotes

1. SAHO getting new computer system, by Gord Brock, The Leader Post, Regina, Saskatchewan, February 6, 1999

2. Letter dated April 28, 1997 from Mario deSantis directed to all Chairpersons and Chief Executive Officers of Saskatchewan District Health Boards. Re: Computerization of Health Care Payroll and Economic Policies. http://www3.sk.sympatico.ca/desam/paper-letterToChairsCEOs-Apr28-97.htm

3. SAHO, Saskatchewan Association of Health Organizations, is the non-profit umbrella management organization of the Saskatchewan healthcare district boards.

4. New Rules for the New Economy: Twelve dependable principles for thriving in a turbulent world, by Kevin Kelly http://www.wired.com/wired/reprints/newrules.html

5. Managing Information Technology-A Vision for the Future-Information Technology architecture. Page 8.5, Saskatchewan Health, April 1995

6. A Historical Perspective of The Saskatchewan Health Information Network, by Mario deSantis and James deSantis, March 1998 http://www3.sk.sympatico.ca/desam/paper-SHIN.htm

7. Review of Economic Soundness of the Implementation of the Saskatchewan Healthcare Systems Architecture, by Mario deSantis, June 21, 1995 http://www3.sk.sympatico.ca/desam/paper-HealthRefSystArchB-Jn21-95.htm