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 - 35% 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: The RxWorks software did not meet user expectations at DSH-M, resulting in the PSC decision halting its implementation at other hospitals. The CDT was informed of this decision on January 6, 2026. The IPO team is awaiting responses to a set of questions shared with the project team to assess the potential impact of this change on the project scope, cost, and schedule. - Suspended: DSH-C and DSH-M - Not started: DSH-A, DSH-N, and DSH-P - Centrack: - Completed: DSH-C - In progress: DSH-M, and DSH-A - Not started: DSH-N, and DSH-P - Verify Spooler: - Completed: DSH-M - In progress: DSH-C, and DSH-A - Not started: DSH-N, and DSH-P - The Verify & Spooler component implementation was planned to follow the successful deployment of RxWorks at each hospital site. With the suspension of RxWorks implementation, the Verify Spooler implementation timeline at DSH-C, DSH-A, DSH-P, and DSH-N is being re-evaluated. • Organization Change Management (OCM): - Pharmacy Modernization Project intranet site deployed providing detailed information and a user guide to end users about the project and its various components and systems. - Training plan for RxWorks Support Team developed. - Development of pharmacy-specific training materials in progress. • Fire Marshal permits have been issued for all five hospital sites. • DSH-Coalinga (DSH-C) MedSelect (Deployment completed): - All 33 display terminals of MedSelect at DSH-C are in production. - Hospital-wide MedSelect v 9.1.2 production deployment completed. - MedSelect deployment, training for the MedSelect version 9.1.2, and as-is and to-be workflows are completed. - Planning hospital-wide deployment of MedSelect v 9.1.3 upgrade is in progress. RxWorks deployment suspended. Centrack deployment completed. • DSH-Metro (DSH-M) MedSelect (Deployment in progress): - MedSelect deployment planning is in progress. - 29 of 29 MedSelect machines have been installed. - New MedSelect Policy Created. - MedSelect Super User training completed. RxWorks (Deployment completed): - RxWorks was successfully deployed and go-live was on August 26, 2025. - RxWorks training was conducted throughout the month of August. - RxWorks software is live for ordering pharmaceutical products. Verify & Spooler (Deployment completed) - The Verify & Spooler machine was installed, and the necessary end-user training was conducted. - Integration of the existing FastPak machines with RxWorks completed. Centrack (In progress): - Centrack training completed. Go-live ramp-up in progress. Infrastructure (Completed) - Construction works are completed, and the final inspection is pending. • DSH-Atascadero (DSH-A) MedSelect (Deployment in progress): - Planning efforts for the MedSelect Cabinet implementation at DSH-A are in progress. - All of the MedSelect equipment deliveries have been completed. - MedSelect v.9.1.2/Oracle Standard virtual server build completed. - MedSelect v.9.1.3/Oracle Enterprise virtual server build completed. RxWorks (Not started) Centrack (In progress) - Planning for the software version update from v8 to v9 is complete. Verify & Spooler (In progress). Infrastructure (In progress) - Phase 1 of the construction works began in July 2025, and completed in all 35 units. Planning for Phase 2 of construction works are in progress, and completion is targeted for June 2026. • DSH-Napa (DSH-N) MedSelect (Not started) RxWorks (Not started) Centrack (Not started): - Centrack implementation follows successful MedSelect installation and configuration. Verify & Spooler (Not started). Infrastructure (Planning in progress): - Fire Marshall permits were received in December 2025. - Planning for the construction Invitation For Bid (IFB) is in progress. • DSH-Patton (DSH-P) MedSelect (Upgrade of existing machines is complete) - MedSelect server and software upgrades are complete. - Planning for migration to v9.1.2/Oracle Standard is complete. Migration will follow hospital-wide deployment of v9.1.2 on new machines. RxWorks (Not started) Centrack (Not started): - Centrack implementation follows successful MedSelect installation and configuration. Verify & Spooler (Not started). Infrastructure (Planning in progress): - Fire Marshal permits were received in December 2025. - Planning for construction IFB is in progress. • 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. On December 8, 2025, the Project Steering Committee (PSC) decided not to proceed with implementing RxWorks at DSH-C, DSH-A, DSH-P, and DSH-N due to poor results from the RxWorks implementation at DSH-M. The CDT was informed of this decision on January 6, 2026. On January 27, 2026, the IPO team requested the project to address a series of questions to help understand how and when the issue was first identified and escalated that led to the descoping of RxWorks, and to assess how this change would impact the project's scope, cost, and timeline. In their responses submitted on April 13, 2026, the project team stated that the end-user training survey results, shared on October 1, 2025 with the DSH management, indicated an overall unsatisfactory user experience with RxWorks rollout and training at the DSH-M site. Additionally, during the EHR project vendor offer evaluations, the team discovered that the offered EHR solution includes an inventory management module that could potentially replace RxWorks. On December 4, 2025, a comparative analysis of the RxWorks and EHR inventory modules was prepared to present at the steering committee meeting. The December 8, 2025, PSC meeting minutes, shared with the IPO team on April 13, 2026, confirm that, based on issues reported with RxWorks and the availability of an alternative inventory management module under the EHR solution, PSC decided to terminate the RxWorks implementation in the remaining hospital sites and remove it from the project scope. 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. The implementation of RxWorks at DSH-C required upgrading MedSelect from version 9.1.2 to 9.1.3. Since DSH-M did not have MedSelect in place, the RxWorks implementation at DSH-M began ahead of DSH-C and was deployed on August 26, 2025. As a result of the recent PSC’s decision not to proceed with the RxWorks implementation, the project team is assessing the impact on the project timeline. Any changes to the project timeline will be reported in the upcoming 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 December 8, 2025, PSC decision to discontinue the RxWorks implementation led to a change from green to yellow in the health rating for this focus area in previous reports. However, in response to the IPO questions received on April 13, 2026, the project team clarified that the descoping of RxWorks will not affect the project's objectives, particularly objective #1: "Improved inventory management." As a result, the health rating for this focus area has reverted back to green. 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 Yellow	The Risks and Issues health rating for this reporting period is Yellow. Due to the PSC’s recent decision to remove RxWorks from the project scope, with no prior relevant risk identified or communicated, the health rating for this focus area changed from green to yellow in the previous reporting periods. Based on the project team’s responses to a series of questions from the IPO team, it appears that, despite user dissatisfaction with the initial rollout of RxWorks at the DSH-M hospital site, the project team did not identify or document any potential risks related to this issue that eventually led to project descoping. Consequently, the health rating for this focus area will remain yellow while the IPO continues to monitor the risk management process before considering reverting to green. On August 26, 2025, the RxWorks inventory management system was deployed at the DSH-M hospital site. On January 6, 2026, the IPO team was notified of the PSC's decision to suspend the RxWorks implementation. Subsequently, on January 27, 2026, the IPO team requested responses to a series of questions to assess the risk and issue identification, and decision-making processes that led to the PSC's decision to remove RxWorks from the project scope. Based on the project team’s responses submitted on April 13, 2026, and a summary report of a training survey conducted on October 1, 2025, the end users at the DSH-M indicated overall dissatisfaction with the RxWorks functionality and training. The report notes that the end users considered the solution complex, not user-friendly, and error-prone. However, the project team did not consider the possibility of end users’ unacceptance of the RXWorks as a potential risk. It wasn't until December 2025 that the EHR inventory module was identified as a viable alternative to the RXWorks inventory solution. The IPO team noticed that the issues related to this change were neither discussed in the regular meetings attended by the IPO team, where risks and concerns were shared with stakeholders, nor recorded in the comprehensive risk and issue log. Aside from the above instance, 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)