NHS saves £1.8bn with CSC contract reductions

£1.8bn has been taken out of the Department of Health’s IT contracts following negotiations with CSC, says health secretary Andrew Lansley

Around £1.8bn has been taken out of the Department of Health’s National Programme for IT (NPfIT) contracts, following a renegotiation with CSC, health secretary Andrew Lansley has said.

Speaking at the launch of the CCIO Network, Lansley said the money released from its Lorenzo patient care record contracts from CSC would be put back into the NHS.

CSC recently revealed it had written off nearly £1bn from its £2.9bn NHS IT contract, after it was forced to renegotiate the deal following major problems in delivering on its commitments.

Under the plans, local NHS Trusts will no longer be told how to choose their IT systems, said Lansley.

“We are now putting local clinicians in the driving seat, able to reap the benefits of the explosion in information and technology which is reshaping the world beyond the NHS,” said Lansley. 

We are now putting local clinicians in the driving seat, able to reap the benefits of the explosion in information and technology

Andrew Lansley, health secretary

Connecting for Health will no longer exist from April 2013. A new delivery organisation will manage existing national applications and services such as the Spine, Choose and Book, digital X-rays, the Electronic Prescription Service, the Summary Care Record and a secure broadband network. 

The role of the NHS Commissioning Board will be to set national standards required to underpin local innovation and choice, he said.

The news follows a speech by care minister Paul Burlow, in which he claimed the NHS could save £1.2bn over five years by encouraging three million patients with long-term conditions to use telehealth technology. However, it would be up to local authorities to raise investment for this technology, he said.

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