Feeds

NHS claws back £1.8bn from IT project fiasco

CSC in cash-back deal with Department of Health

Choosing a cloud hosting partner with confidence

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.

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.