Independent Project Oversight Report (IPOR) Rating

Key Questions

Is the project on track to satisfy the customer's business objectives?Yes

Is the project on track to achieve the objectives in the approved timeframe?Yes

Is the project on track to achieve the objectives within the approved budget?Yes

Project Overall Health

Comments

Green

The overall project health rating for this reporting period is Green. Project current status and key accomplishments: • Project Completion Status - 45% complete. • Implementation progress of project milestones across the five hospital sites: - MedSelect: - Completed: DSH-C - In progress: DSH-M and DSH-A - Not started: DSH-N and DSH-P - RxWorks – Removed from project scope: - Suspended: DSH-C and DSH-M - Not started: DSH-A, DSH-N, and DSH-P - Centrack: - Completed: DSH-C and DSH-M - In progress: DSH-A - Not started: DSH-N and DSH-P - Verify Spooler: - Completed: DSH-C and DSH-M - In progress: DSH-A and DSH-N - Not started: DSH-P • Organization Change Management (OCM): - OCM-related activities across all the hospital sites are ongoing. • Fire Marshal permits have been issued for all five hospital sites. • DSH-Coalinga (DSH-C) MedSelect (Deployment completed): - Hospital-wide deployment of MedSelect v 9.1.3 upgrade is planned for July. Centrack deployment completed. Verify & Spooler deployment completed. • DSH-Metro (DSH-M) MedSelect deployment is in progress. RxWorks deployment completed on August 26, 2025. Verify & Spooler deployment completed. Centrack deployment completed: - Post-implementation activities are in progress. Infrastructure related work is completed. • DSH-Atascadero (DSH-A) MedSelect (Deployment in progress): - Planning efforts for the MedSelect Cabinet implementation at DSH-A are in progress. - MedSelect v.9.1.3/Oracle Enterprise virtual server build completed. Centrack (In progress) Verify & Spooler (In progress). Infrastructure (In progress) - Phase 1 of the construction works is completed. Phase 2 of completion is expected in November 2026. • DSH-Napa (DSH-N) MedSelect (Not started) Centrack (Not started): - Centrack implementation follows successful MedSelect installation and configuration. Verify & Spooler (Deployment planning in progress). Infrastructure (Planning in progress): - The construction Invitation For Bid (IFB) release is planned for July. • DSH-Patton (DSH-P) MedSelect (Upgrade of existing machines is complete) - The existing physical MedSelect server was migrated to a new virtual server and upgraded from older version to 9.1.2/Oracle Standard. - Planning for hospital-wide deployment of v9.1.2 on new machines is in progress. Centrack (Not started): - Centrack implementation follows successful MedSelect installation and configuration. Verify & Spooler (Not started). Infrastructure (Planning in progress): - The construction Invitation For Bid (IFB) release is planned for July. • Project Approval Lifecycle (PAL) - (1/2019 – 4/2022) - PAL Stage 4 was approved in July 2021, and again re-validated in April 2022.

Focus Area/Rating	Comments
Governance Green	The Governance health rating for this reporting period is Green. The project continues to include the pillars of proper project governance: • Structure: The project team, Executive Committee, vendor, and user community are established and follow established roles and responsibilities. • People: The right people with the right skills are in place, and project, vendor, and hospital resources are engaged. • Communication: Consistent information sharing is taking place. Key project information and status are documented and communicated through both push and pull mechanisms. • Decision-Making: Roles and responsibilities are established through an approved Governance plan and project RACI, and decisions are being logged. Note: An Executive Steering Committee is established and meets regularly, and a dedicated meeting for working risks and issues is regularly scheduled, where risk and issue logs are documented and worked on in a consistent manner.
Time Management Green	The Time Management health rating for this reporting period is Green. Construction at DSH-P and DSH-N has been delayed by six months due to: 1) DGS Form 23 approval taking six months instead of three; 2) new HCAI involvement requirements adding two months; and 3) a three-month delay for the Department of State Architect exemption. The DSH plans to issue the Invitation for Bids (IFB) for each site in July, with construction work expected to begin in October. However, this delay may extend the project timeline by approximately 5%, shifting the completion date from May 2027 to June 2027. As a result of the above-mentioned delays and the recent PSC’s decision not to proceed with the RxWorks implementation, the project team is assessing the impact on the project timeline. Once confirmed, any changes to the project timeline will be reported in future IPORs.
Cost & Contract Management Green	The Cost & Contract Management health rating for this reporting period is Green. The project experienced a cost variance of over 10%. To address this, the project submitted an SPR to the CDT that was approved on March 5, 2025, re-baselining the project cost. As a result of the recent PSC decision not to proceed with RxWorks implementation, the project team is assessing the impact of removing RxWorks-related activities from the project scope. Any change to the project cost and contract will be reported in the upcoming IPORs.
Scope Management Green	The Scope Management health rating for this reporting period is Green. The project is on track to achieve the set objectives. The Pharmacy Modernization project will improve patient care and pharmacy operations by implementing an enterprise-wide automated solution across all five state hospitals. The elements of this project are: Inventory (medication) control, medication repackaging and dispensing, secure management of controlled medications, accurate patient billing information, pharmacy data integration across all five hospitals (Coalinga, Metropolitan, Atascadero, Napa, and Patton), and modifications to the existing application environment and architecture to support new hardware and software.
Resources Green	The Resources health rating for this reporting period is Green. • A full-time state project manager is serving the project and is supported by another project manager on an as-needed basis, along with several DSH team members supporting the overall project effort. • One vendor project manager, along with other technical staff, is supporting the project.
Quality Green	The Quality health rating for this reporting period is Green. To date, project quality, whether due to vendor products or state activities, has not posed a major problem. However, the high number of MedSelect hardware issues arising on newly installed equipment is being closely monitored. • Quality Assurance planning activities are anticipated to be a collaborative effort with the vendor, pharmacists, and nursing administrators related to quality for the Commercial Off-The-Shelf (COTS) Solution. • Stakeholders are participating in all walkthroughs and evaluations of the most effective equipment configuration for their environment. • Weekly meetings are held with the stakeholders to review what is working well and what areas need improvement during the implementation phases of the project. • Lessons Learned sessions are scheduled with the objective of applying Lessons Learned to the remaining hospital sites’ implementations.
Risk And Issues Green	The Risks and Issues health rating for this reporting period is Green. The IPO team confirms that the project team conducts regular meetings and maintains thorough records as follows: • Weekly project meetings are scheduled and regularly held, allowing stakeholders and end users to raise risks and issues. • Weekly scheduled meetings dedicated to addressing current risks and issues are regularly held with the stakeholders and the vendor. • A comprehensive issue log is maintained, and action plans are expediently developed to address open issues. • A comprehensive risk log is maintained and includes risk response strategy, planning, and contingency planning.
Transition Readiness Green	The Transition Readiness health rating for this reporting period is Green. As part of Transition Readiness, the team is currently working with the vendor on future workflows and demonstrations to ensure all organizational change management elements are documented, reviewed, and approved. Additionally, stakeholders are involved throughout the project, participating in all walkthroughs and evaluations of the equipment configurations to ensure they are effective for their specific environments.
Conditions For Approval Green	There are no Conditions for Approval.
Corrective Action Green	There are no Corrective Action Plan Items.

• Special Project Report 1 (pdf)
• Stage 4 Project Readiness and Approval (pdf)
• Stage 3 Part B Solution Development (pdf)
• Stage 3 Part A Solution Development (pdf)
• Stage 2 Alternative Analysis (pdf)
• Stage 1 Business Analysis (pdf)