Rhode Island Auditor General Dennis Hoyle said he will conduct an independent audit of expenses related to contractors and vendors connected to the failed United Healthcare Infrastructure Project public benefits computer system.
House Oversight Committee Chairwoman Patricia Serpa, D-West Warwick, had requested the audit of the $364 million system, which launched in September and has featured myriad glitches, including the exposure of personal data and missed payments to child-care providers.
"This is a serious problem that has impacted all Rhode Islanders," Serpa said Wednesday. "UHIP's failures had a dramatic effect on our recipients and providers who depended on these services, but the broken system has also impacted all of our state's taxpayers who must foot the bills for this botched effort."
Last week, a report that state Human Services Director Eric Beane compiled for Gov. Gina Raimondo concluded that vendor Deloitte delivered Rhode Island a broken system.
"There are widespread issues with UHIP that have caused a significant deterioration in the quality of service provided by the state. These problems largely stem from Deloitte's delivery of an incomplete technology system that was not ready to go live in September 2016," Beane said in the report.
"The design of the system did not sufficiently account for the specific needs and policies of Rhode Island, and there was not enough testing to ensure that major issues were both identified and addressed."
Beane's report said the vendor improperly coded or configured key policy and program rules into the system, resulting in errors in eligibility determination, benefits issuance and provider payments.
Short term, said Raimondo, the state will continue to withhold payment from Deloitte. The firm has already received about $200 million. Deloitte has also subcontracted work, and other companies received contracts as well.
The governor also wants a new contract with Deloitte that will hinge payments to performance and for Deloitte cover unexpected costs to the state for additional personnel and other expenses incurred because of system errors.
A message seeking comment was left with Deloitte.
Of the $364 million involved in the project, Deloitte has received about $200 million and $68 million more is left to be paid the company. Deloitte has also subcontracted work, and other companies received contracts as well.
Serpa has chaired three committee hearings on UHIP and intends to schedule more. She has asked auditors to review the various funding streams for the project, how costs are allocated, and whether payments were generally consistent with contract terms.