Insurer IT overhaul
National health insurer Medibank Private is having to overhaul the delivery of a planned IT upgrade at a cost of almost US$20million, reported Computerworld Australia.
The decision to change the delivery programme was taken after executives found its original plan of doing the business system renewal (BSR) project all in one go was unlikely to meet the insurer’s timetable or objectives.
Medibank will now do the BSR in a staged approach, which it has admitted in its annual report would cost around US$19.7million more.
Due to the changes, Medibank estimated the BSR programme would not begin to show positive results before 2008. It is expected to streamline claims processing and the overall management of its large portfolio of business activities.