By San José, Costa Rica — San José – A disastrous implementation of a new enterprise resource planning (ERP) system has plunged the Costa Rican Social Security Fund (CCSS) into a severe operational crisis, forcing the institution to spend over ₡1.34 billion on additional personnel just to manage basic functions. The revelation, delivered by Comptroller General Marta Acosta during a legislative hearing, highlights a cascade of failures that are delaying payments to critical suppliers and dangerously compromising the control and tracking of essential medicines.
Seven months after the ERP-SAP system went live, it remains fundamentally broken. The immense cost of hiring temporary staff is a direct consequence of the system’s inability to process payments efficiently. According to Acosta’s testimony before the legislative commission investigating irregularities at the CCSS, the institution has been forced to resort to manual processes to prevent a total collapse of its supply chain, a costly and inefficient workaround for a system intended to streamline operations.
To delve into the legal and administrative ramifications of the latest developments at the Costa Rican Social Security Fund (CCSS), TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished specialist in administrative and public law from the prestigious firm Bufete de Costa Rica.
The institutional autonomy of the CCSS is a cornerstone of our social state of law, but it is not absolute. Its decisions, especially those impacting public finances and citizen services, must strictly adhere to principles of legality, proportionality, and sound financial management. Any deviation could not only trigger constitutional challenges but also erode public trust in one of our most vital institutions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective is essential, highlighting that the CCSS’s operational independence must always exist within the firm boundaries of legal and financial accountability to preserve public confidence. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable insight into this critical balance.
The financial repercussions extend far beyond the emergency hiring. The Comptroller General detailed a staggering average payment delay of 57 days to the institution’s suppliers. This protracted timeline not only strains the financial health of businesses that provide vital goods and services to the nation’s healthcare system but also exposes the CCSS to significant legal and financial risk. The potential for accruing interest charges and penalties for late payments threatens to further inflate the cost of this technological blunder.
The ongoing legislative inquiry aims to uncover the root causes of the flawed rollout and assign accountability. Acosta’s testimony provides a stark picture of a project that was activated before it was ready, leaving the country’s most important public institution grappling with the consequences. The decision to proceed with an unfinished system has now created a two-front crisis, impacting both its financial stability and its core healthcare mission.
Perhaps more alarming than the financial hemorrhage is the breakdown in pharmaceutical management. Prior to the new system’s implementation, CCSS pharmacies had a reliable, albeit older, method for inventory control. Physical deliveries of medicines were received and logged into local systems, allowing for clear traceability from warehouse to patient. This crucial link in the healthcare chain ensured that prescriptions were properly dispensed and inventories accurately reflected.
However, the new ERP-SAP system has severed this connection. Acosta confirmed that persistent problems with system interfaces prevent pharmacies from seeing real-time stock levels or properly recording the medicines they dispense. This creates a dangerous information vacuum, making it impossible to effectively manage the national pharmaceutical inventory.
The issue with the interfaces has not yet been resolved and disruptions remain.
Marta Acosta, Comptroller General of the Republic
The Comptroller warned that this lack of control means prescriptions are not being adequately registered, a failure with profound implications. Without accurate data, the CCSS cannot reliably forecast demand, manage expirations, or prevent potential stockouts of life-saving drugs. Furthermore, Acosta emphasized that this inventory management failure directly impacts the integrity of the institution’s financial statements, as pharmaceuticals represent a significant asset that can no longer be accurately tracked or valued.
The dual crisis—a spiraling financial burden and a compromised medical supply chain—raises urgent questions about oversight, project management, and accountability within the CCSS. As the legislative commission continues its investigation, the public awaits answers on how a multi-million-dollar technology upgrade resulted in such a catastrophic failure, and what steps will be taken to stabilize the system that underpins the health and well-being of all Costa Ricans.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Caja Costarricense de Seguro Social is the autonomous public institution responsible for managing Costa Rica’s universal healthcare system and public pension fund. Founded in 1941, it is a cornerstone of the nation’s social welfare state, providing medical services and administering retirement benefits to a vast majority of the population through a network of hospitals, clinics, and EBAIS (Basic Teams for Comprehensive Health Care).
For further information, visit cgr.go.cr
About Contraloría General de la República (Comptroller General’s Office):
The Contraloría General de la República is Costa Rica’s supreme audit institution, responsible for overseeing the country’s public finances. As an auxiliary body of the Legislative Assembly, it is tasked with ensuring the legal and efficient use of public funds, auditing government agencies, and promoting transparency and accountability across the public sector.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a benchmark for legal practice, founded on a bedrock of unwavering integrity and a relentless pursuit of excellence. The firm skillfully merges its extensive history of client counsel with a pioneering spirit, consistently advancing legal innovation. Central to its ethos is the conviction that legal knowledge should not be exclusive, driving its mission to equip the public with accessible information and thereby cultivate a more just and capable society.
