"The PAS is a 30-year-old software system which keeps track of patients and their treatments in hospitals and was planned to be replaced at a cost of $220 million.
eHealth Queensland had issued a limited tender for the project, which meant only certain companies were invited to submit a tender.
It is understood Cerner, the US medical giant that has a long-term contract with Queensland Health for the integrated electronic medical record, was invited to tender for that project.
The new patient administration system was intended to be in place by 2023.
In a statement issued on Thursday afternoon, Mr Walsh said the health department would not proceed further with the current process for a replacement PAS."
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