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NPfIT to be cut by £1.8 billion

12 March 2012   Lyn Whitfield

Health secretary Andrew Lansley

Health secretary Andrew Lansley has confirmed that around £1 billion savings will be delivered to the NHS from CSC’s contract for the North, Midlands and East of England.

Speaking at the launch of the EHI CCIO Leaders Network, he also said that around £1.8 billion of savings would be made on the cost of the National Programme for IT in the NHS as a whole.

A spokesperson for the Department of Health Informatics Directorate confirmed to eHealth Insider this morning that the £1.8 billion figure included “back office” savings on the cost of running the programme and other national contracts, as well as the CSC deal.

Some of this money has already been included within earlier announcements on savings on the national programme.

In the last days of the Labour government, health secretary Andy Burnham announced that £600m would be cut from the programme as part of a budget deal with the Treasury.

The present government announced in September 2009 that a further £700m would be cut, with £200m of this coming from CSC’s deal.

The DH spokesperson said more detail about the savings and where they were coming from would be released once a final deal with CSC was signed-off at the end of the month.

The company told its US investors earlier this month that it had signed a ‘non binding letter of intent with the DH’ to agree a new deal, after almost a year of tortuous negotiations.

The company has been in talks with the DH about a new deal since Pennine Care NHS Foundation Trust, the fourth, crucial, ‘early adopter’ for the Lorenzo electronic patient record system, pulled out of the programme in April last year.

The statement to investors says that as part of the agreement, the company expects to be contracted to deliver further Lorenzo implementations “adding to the 10 deployed successfully to date.”

Asked whether the DH was sure that there was still a demand for the electronic patient record in the NME, the spokesperson told EHI that was “working with current figures” although they declined to go into details about how these have been obtained.

At the EHI CCIO Leaders Network launch, Lansley was asked by Joe McDonald, NHS Connecting for Health’s national clinical lead for mental health, whether mental health trusts in the NME would get Lorenzo. Lansley replied: “I hope you will have access to Lorenzo, and other systems too.”

However, the DH spokesperson declined to answer questions about whether CSC would be given a deal in which it deployed Lorenzo and other systems to the region.

Some mental health trusts are already tendering for their own systems. Pennine Care itself is one of a number of trusts using a framework contract tendered by NHS Shared Business Services to procure systems.

The procurement is likely to see Lorenzo turned off at its first early adopter, NHS Bury, EHI reported last week.

Watch Andrew Lansley's speech at the launch of the EHI CCIO Leaders Network on YouTube.

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Related Articles:

16 News: Lansley launches CCIO Leaders Network | 8 March 2012
2 News: End in sight for Lorenzo at Bury | 8 March 2012
13 News: DH secures £1 billion savings from CSC | 5 March 2012
18 News: CSC plans massive job losses | 2 February 2012
Last updated: 12 March 2012 14:57

© 2012 EHealth Media.


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If 1.8 billion (cumulative) is not being paid out, how much is due to CSC?

Mary Hawking 121 weeks ago

We have 600 million 700 million 200 million (total 1500 million) "saved" under the last government.

Some of the 1.8 billion (is a billion a thousnd million or a million million?) is coming from savings made by running down CfH.

(Will some of its functions be transferred to other departments or agencies with a corresponding increase in their expenditure?)

How much will come from renegotiation of the CSC LSP contract?

And what will the revised contract continue to include?

Lorenzo? Interim iSoft solutions? Interim GP solutions?

It doesn't sound like a major reduction somehow.. ;-<


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Savings vs Cut

starslikedust 121 weeks ago

Important definitions:

Saving - sums of money saved by economy.

Cut - reduced by or as if by cutting: cut whiskey; cut prices.

The 1.8bn was cut.

It's probably the right decision, but the language of central government where every cut is a "saving" is beginning to frustrate.


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Language of government

NHS Insider 120 weeks ago

The language of central government is frequently misunderstood

Especially by SHA's and in turn by PCT's - its not their fault?

P.S. Pity about the hooray-henrys passing the Bill - Next thing they'll be passing the buck :)


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Savings?

John Harry 121 weeks ago

It is not a savings. The NHS is simply gettting less IT. And it needs more IT, not less.


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