01 June 2007
Department of Health officials have indicated that they will enforce their contract with a key IT supplier, despite news that the £13bn NHS computer upgrade could be delayed yet again by a stalled takeover.
DoH managers are monitoring the fractured relationship between US technology firm Computer Sciences Corporation, a major contractor to the NHS National Programme for IT, and its loss-making software sub-contractor iSoft.
Executives at CSC this week blocked a proposed £132m takeover of iSoft by Australian firm IBA Health, putting the future of the software specialists in doubt.
Earlier this month, CSC indicated that it could back the acquisition. However, approval was conditional 'on the new organisation's enhanced ability to deliver on its commitments to CSC, thereby ensuring the success of the NHS NPIT'.
The US firm told Public Finance that it now had 'concerns' over the deal. CSC's contract with the sub-contractor means it can drop iSoft if it changes hands.
A switch to a new supplier could delay the NHS project further. But a DoH spokeswoman claimed that would not necessarily mean additional costs to taxpayers.
'If a supplier wishes to change the contract, they will need to negotiate and agree that change with us. When this has happened previously – as with BT and Fujitsu changing their subcontractor – we protected the taxpayer by maintaining the original terms and conditions of the contract.'
The National Programme for IT aims to provide a patient database linking 30,000 GPs and 300 hospitals, but it is two years behind schedule.
PFjun2007
