BT gets extra £815m from NPfIT

BT is to be paid £815m more than it had first expected from its contracts under the National Programme for IT [NPfIT].

The minister Ben Bradshaw said in a Parliamentary answer to Shadow Health spokesman Stephen O’Brien on 1 June 2009 that BT is to receive £1.567m under a local service provider contract to provide systems, including the Cerner Millennium software, to hospitals in London. 

This is £546m more than the £1.021m LSP deal agreed in 2003.

Bradshaw also said that BT will receive £889m for the NPfIT data “spine”, which is £269m more than the £620m which was agreed in 2003.

With all the extras, I calculate that the NPfIT contracts – which were originally announced as costing £6.2bn – have risen by more than £1bn to about £7.3bn.

This was the full parliamentary question and answer:

Mr. Stephen O’Brien: To ask the Secretary of State for Health what percentage of each local service provider contract for the National Programme for IT is apportioned to the Care Records Service;

(2) what the estimated cost of each system within the National Care Records Service is; and what the cost of each contract for delivery of the service is.

Mr. Bradshaw: The NHS Care Record Service (NHS CRS) comprises a number of national services, and compliant local applications, for example, trust patient administration systems and general practitioner systems. The key nationally-funded components of the NHS CRS are delivered via the spine and the local service provider (LSP) contracts.

The estimated lifetime value of the relevant contracts is in the table at 2004-05 prices. This was the basis used in “The National Programme for IT in the NHS: Project Progress Report” (National Audit Office 16 May 2008).


£ million



South LSP






1) Original value £1,021 million, but including an addition for work in the South now transferred by Contract Change Notice (CCN) to BT.
(2) This contract, with Fujitsu, was terminated at the end of May 2008. The value of future planned expenditure on national programme systems and services in the South will be determined following a review of local national health service requirements, and subject to relevant business case approval.


“Costs specific to the individual components of the NHS CRS supported by the spine are not separately identified within the spine contract. The value of LSP contracts, and entitlement to payment under the contracts, is structured around the provision and ongoing support to NHS organisations within the LSP area of the complete raft of systems and services that will meet the agreed requirements set out in the contracts. The contracts do not specify costs relating to individual systems and services.”


NPfIT a spiralling disaster – BMA leader – IT Projects blog  [from E-Health Insider] 

Did BT have the NHS over a barrel? –