IT supplier CSC repays £170m as NHS complains of Lorenzo record progress
IT supplier CSC has repaid £170m after the NHS said it was unhappy with the progress of CSC's Lorenzo patient care records contract. The NHS paid a £200m advanced payment to CSC for the 2011 project costs when a memorandum of understanding was signed.
Karl Flinders 
I am Computer Weekly's services editor. My main focus areas for stories are financial services and outsourcing.
Typically for financial services I write about how the retail and investment banks are harnessing technology and how systems can be used to help companies meet regulations such as Basel II and the Markets in Financial instruments Directive (MiFID).
Outsourcing is relevant across all business and technology sector and focuses on the strategic and cost cutting benefits associated with outsourcing IT.
Topical issues include the insourcing versus outsourcing debate and whether it is better to off-shore, near-shore or on-shore your outsourced technology.
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IT supplier CSC has repaid £170m after the NHS voiced frustration at the progress of CSC's Lorenzo patient care records contract.
The NHS had paid a £200m advanced payment to CSC for the 2011 project costs when a memorandum of understanding was signed.
In a recent Public Accounts Committee report, the Department for Health was slammed for not informing MPs that the NHS had given CSC £200m in advanced payments for yet-to-be-delivered contracts.
CSC repaid £170m after the NHS said it was unhappy with progress. "Because completion of the MOU has been subject to delays in government approvals and, as a result, contract amendment negotiations have not progressed, the NHS required the company to repay approximately £170m," said a CSC statement.
The government recently decided to accelerate the dismantling of the NHS National Project for IT (NPfIT).
Meanwhile The Register reports US investors are suing CSC for allegedly making false statements about performance.
NHS IT contracts could cost more to cancel than complete >>
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