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CSC and NHS hit fresh deadlock over Lorenzo debacle

US systems integrator CSC and the NHS have extended talks over the 'unworkable' Lorenzo patient care records system until the end of August, with CSC giving a gloomy prognosis about reaching an agreement over Lorenzo.CSC warned investors in a US Securities Exchange Commission (SEC) filing on Friday that it may not be able to reach an agreement with the Department of Health (DoH) over the Lorenzo patient records debacle, which has bruised both organisations.
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Written by Tom Espiner, Senior Reporter on

US systems integrator CSC and the NHS have extended talks over the 'unworkable' Lorenzo patient care records system until the end of August, with CSC giving a gloomy prognosis about reaching an agreement over Lorenzo. CSC warned investors in a US Securities Exchange Commission (SEC) filing on Friday that it may not be able to reach an agreement with the Department of Health (DoH) over the Lorenzo patient records debacle, which has bruised both organisations.

"On May 31, 2012, CSC and the NHS extended the Lorenzo-related standstill agreement to August 31, 2012," said the SEC filing. "There can be no assurance that CSC and NHS will enter into the interim agreement or any amendment to the existing agreement or, if the parties do not enter into the interim agreement or an amendment by August 31, 2012, that the Lorenzo-related standstill arrangement will be extended."

Lorenzo has caused problems for both CSC and the DoH. The Public Accounts Committee said in August 2011 that the DoH had failed to secure contracts with CSC and BT that worked. The patient care records system was heavily criticised by the groups of MPs in 2011 as being 'unworkable' after running years behind schedule.

In May 2012 CSC said that poor financial performance for the fiscal year was primarily due to NHS write-offs.

The NHS and CSC were slated to enter into a non-binding interim agreement by 1 June after protracted discussions about the patient care records system.

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