Accenture is reportedly set to walk away from its
ten-year £2bn contract to supply systems to the NHS, after
struggling to make profits from it.
Media reports suggest Accenture, the lead contractor for the
work, could announce a termination of its agreement later
today.
The company is scheduled to post its latest financial results
this afternoon in the US, and reports suggest the figures could be
accompanied by an NHS pull-out statement.
Earlier this year the company took a £265m charge for losses
associated with its NHS National Programme for IT contracts, where
it is helping to build a new computer system.
The effect of the charge meant Accenture saw its quarterly net
profits dive 67%.
BT is one of a number of subcontractors working on the Accenture
projects, and it may be in a position to take its place if the
outsourcer pulls out.
The Accenture contract covers the design, building and
management of systems that support patient care, such as electronic
medical records, appointment booking and prescription systems.
But the system Accenture is now working on will now not be
deployed as widely as previously forecast, as the UK government has
decided to allow GPs and other local health-care providers to use
alternative computer systems.
Accenture chief executive officer Bill Green told investors last
year that problems associated with the NHS contract had been
resolved. On reporting the company results earlier this year, Green
said the company had underestimated the problems.
Green said, “Several issues increased the risks and
uncertainties associated with the NHS contracts and affected our
estimates of the expected contract revenues and costs. We were
required to record this provision [the £265m charge] to reflect
these new circumstances.
Accenture had said that it planned to try to renegotiate the
contract terms of the loss-making contract, but there was no
guarantee that this attempt would be successful.
The NHS has closely written contracts with a number of suppliers
which has led to “fines” for suppliers that have not met technology
roll-out goals.
BT has been forced to pay fines in the past for the late
delivery of technology under its NHS contracts.