Feeds

NHS claws back £1.8bn from IT project fiasco

CSC in cash-back deal with Department of Health

Beginner's guide to SSL certificates

The government has reached an agreement for a reduction in its contract with CSC, the largest supplier to the now-defunct National Programme for IT (NPfIT). The total saving for the Department of Health (DH) from NPfIT will now be approximately £1.8bn.

Health secretary Andrew Lansley told an E-Health Insider event in London today that the money it has secured from US-based firm CSC would be released back to the NHS. An announcement on how the money will be distributed is expected in the coming months.

Following years of waste and delay in introducing electronic care records to hospitals, the agreement signals a huge breakthrough, according to Lansley.

CSC was contracted to deliver Lorenzo electronic patient records to trusts in the north, Midlands and east of England but the project has suffered from severe delays. The DH has been locked in renegotiations with the supplier for more than a year to revise the scope of the deal and claw back some the money it has spent with the company.

In May 2011 the department's chief information officer at the time, Christine Connelly, warned that it would be cheaper for the DH to keep its contract, rather than extricating itself from the deal, as CSC could seek substantial damages.

At the end of last year CSC made it clear in a filing to the Securities and Exchange Commission that it would be prepared to launch legal action against the government if it tried to terminate the contract, but the company appeared to soften its stance at the end of last year by confirming a $1.5bn write-off of the NPfIT deal.

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

Security for virtualized datacentres

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.