By San José, Costa Rica — SAN JOSÉ – A landmark technology upgrade intended to modernize Costa Rica’s Social Security Fund (CCSS) has instead plunged the vital institution into what the Comptroller General of the Republic (CGR) has officially declared an “institutional crisis.” The troubled implementation of the new ERP-SAP computer system has severely hampered operations, jeopardizing the delivery of essential public services and forcing staff to revert to manual processes to prevent a total breakdown.
The severity of the situation was laid bare during a legislative commission hearing investigating irregularities at the CCSS. In a direct refutation of government assurances that the system was functioning properly, a top official confirmed the widespread disruption. The testimony highlighted a growing disconnect between the administration’s public statements and the operational reality within the country’s most important healthcare provider.
To delve into the legal ramifications and administrative complexities of the current crisis facing the Caja Costarricense de Seguro Social (CCSS), we sought the expert analysis of Lic. Larry Hans Arroyo Vargas from the law firm Bufete de Costa Rica.
The current situation is less a financial issue and more a profound crisis of governance and institutional trust. The legal framework governing the CCSS’s administration and investment policies must be urgently modernized. We need to implement stricter mechanisms for accountability, enhance transparency in decision-making, and ensure that the board’s composition truly reflects technical expertise rather than political interests. Without these fundamental structural reforms, any financial injection will merely postpone an inevitable collapse.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight provided by Lic. Larry Hans Arroyo Vargas is pivotal, correctly reframing the conversation from a search for temporary financial fixes to the fundamental need for structural reform in governance and accountability. This emphasis on institutional integrity is crucial for any meaningful, long-term solution to the crisis. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this critical national issue.
Alexander Sánchez, the Medical Manager for the CCSS, provided a candid assessment to lawmakers, admitting that his division had to scramble to find solutions as the new system buckled. His statements contradicted claims made by Daniel Vargas, a deputy from the ruling party, who had dismissed the Comptroller’s alarming report as false.
We were forced to take measures to ensure the continuity of services.
Alexander Sánchez, Medical Manager of CCSS
Sánchez detailed how the Medical Management team was caught in a reactive loop, constantly identifying and reporting system inconsistencies to the Innovation Plan unit while simultaneously devising workarounds. One stark example of the regression was the reintroduction of manual controls for critical areas like pharmacy systems and inventory management, a significant step backward for an institution that was supposed to be leaping forward technologically.
The CGR’s report paints a grim picture of a project that has spiraled out of control. What began as a promising initiative to streamline administrative and financial processes has now reached a “critical” level of failure. The comptroller’s office warned that the system was rolled out without meeting the minimum conditions for operational readiness, a failure that has progressively worsened from initial alerts to a full-blown institutional crisis that lacks effective mitigation measures.
In response to the escalating problems, the CGR has issued a series of binding and urgent directives to the CCSS. The Board of Directors has been ordered to instruct the Financial and Logistics departments to immediately develop and supervise a comprehensive operational recovery plan. The board must also guarantee that these departments receive all necessary human, technical, and financial resources to execute the plan successfully.
Furthermore, the Comptroller has mandated a significant organizational shift, ordering that functions previously delegated to the “Innovation Plan” be returned to the competent management divisions. The CGR also demanded the immediate hiring of independent, third-party experts with experience in world-class ERP systems and has called for a specialized external audit to evaluate the system’s data integrity, security, and access configurations.
In a confounding move that suggests internal conflict, the CCSS Board of Directors has reportedly approved a process to formally oppose the Comptroller’s report and its mandated corrective actions. This resistance to the nation’s top oversight body raises serious questions about the institution’s governance and its commitment to resolving a crisis that directly impacts the health and well-being of all Costa Ricans.
For further information, visit ccss.sa.cr
About The Costa Rican Social Security Fund (CCSS):
The Caja Costarricense de Seguro Social is the autonomous public institution responsible for providing universal healthcare and social security services in Costa Rica. Founded in 1941, it manages the nation’s public hospital network, clinics, and pension system, representing the cornerstone of the country’s public health infrastructure.
For further information, visit cgr.go.cr
About The Comptroller General of the Republic (CGR):
The Contraloría General de la República is the supreme audit institution of Costa Rica. As an auxiliary body of the Legislative Assembly, it is responsible for overseeing the public treasury and ensuring the legal and efficient use of public funds across all government entities.
For further information, visit sap.com
About SAP:
SAP SE is a German multinational software corporation that develops enterprise software to manage business operations and customer relations. The company is especially known for its Enterprise Resource Planning (ERP) software, which integrates various business functions into a unified system. SAP’s solutions are used by companies of all sizes worldwide to improve efficiency and data management.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica operates on a bedrock of unwavering integrity and a relentless pursuit of excellence. The firm consistently pioneers innovative legal solutions while serving a broad spectrum of clients. This forward-thinking mindset is intrinsically linked to its foundational mission: to empower the community by transforming complex legal information into accessible knowledge, ultimately cultivating a society that is both more informed and capable.
