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It is already at least four years late, but the NHS project to give every patient in England an e-care record has suffered a further setback: having to fire its IT contractor. Connecting for Health said it “regrettably” told Fujitsu that its £896million 10-year IT contract to supply records to NHS trusts in the south and west will be terminated early. Its officials said that despite the best efforts of both parties, “it has not been possible to reach an agreement on the core Fujitsu contract,” even after long negotiations. The contractual dispute was said to centre on the NHS’s demand for greater flexibility in the supply of Fujitsu’s service, which would have increased the contractor’s costs. In return, the Financial Times added, Fujitsu wanted more money or if not, a reversion to the original contract specifications set out in the initial agreement. Given the affected part of the programme is already running at least four years over its nationwide delivery date, the loss of Fujitsu can only bring further delays. BT is yet to be asked to replace Fujitsu, similarly to how CSC was invited to and won the workload of Accenture, said to be £2bn, when the services giant quit NHS IT two years ago. A spokesman for BT said last night the company was interested: “If Connecting For Health approach us, we will consider the work.” More immediately, the loss of both Accenture and now Fujitsu means the world’s largest civil IT project will proceed with half the number of IT contractors it started with. Supporters of the scheme will say today’s line up, albeit reduced, vindicates the contractual decision not to rely on a single IT supplier for the entire programme. But in light of Fujitsu’s termination, Stephen O’Brien, the shadow health minister, yesterday said Labour has turned a “dear ear” to warnings about problems with the NHS programme. As a result of the contractor’s departure, Mr O’Brien warned the IT programme could now face further delays that would put £12.7bn of taxpayers’ money at risk. But Connecting for Health pointed out that Fujitsu made a commitment to “providing a smooth transition to new arrangements” without specifying what those arrangements would be. In a statement to E-Health Insider, the IT giant said it has formally “withdrawn” from the NHS computerisation, given there was no “prospect of an acceptable conclusion” over its contract. Yesterday, Fujitsu’s website failed to mention it had pulled out of the NHS, but it did trumpet a £4.2m IT contract extension with the Environment Agency to update the UK’s flood protection systems. The Japanese company, which is estimated to be a reported £300m worse off for leaving NHS IT, is now expected to have 20 days in which it can register a counter claim to the termination notice that Connecting for Health promised to send it yesterday. May 30, 2008 Email this article Printer friendly page Previous Page
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