The Kenai Peninsula Borough entered into an operating agreement with Central Peninsula General Hospital, Inc. for the operation of the hospital as well as other medical facilities, in addition to providing other healthcare programs and services, on a nonprofit basis to ensure the availability to service area residents. On Tuesday night, the Borough Assembly enacted an ordinance, which passed through consent agenda, that would provide for automated systems to process financial information for the organization including processing of payroll for 1,000+ employees and gross pay in excess of $90 million per year.
Assembly Member Tyson Cox said:
“Appropriating funding from the Central Peninsula Hospital Plant Replacement and Expansion Fund for the replacement of Central Peninsula Hospital’s Enterprise Resource Planning Systems for human resources, payroll, supply chain, accounts payable, and general finance functions, which was brought to us by the mayor. What all of that means is it’s software. What they’re going to do is buy some software. The software is, they’re asking for $4,881,993. That software has not been replaced since 2001. They are hopeful that it will five to seven years, which seems to be the lifespan of software these days.”
According to the CPH administration, they hope to implement Workday systems using a phased approach, with HR/Payroll implemented in Phase 1, followed by other core financial systems implemented together in Phase 2. Capital costs associated with implementing both phases of the Workday system as well as estimations total $4,881,993. Software subscription costs for the Workday system is estimated to be $1,297,869 over a three-year period. The cost of acquiring and implementing systems from Workday, Inc., including subscription services for the first three years is expected to be an amount not to exceed $6,179,862.
The Plant Replacement Fund, which is designated as a source of funding for major repairs and replacement of medical facilities, improvements, fixtures and equipment for medical facilities.
