UK health agency Connecting for Health will now pay telco BT £1 billion, 61 per cent
more than the original £620 million, to provide the backbone for the
NHS National Programme for IT, following a contract reset in
February this year.
The amounts which will be paid under the six main contracts have
risen from the original total of £5.5 billion to £6.6 billion as a result of
those negotiations, according to a parliamentary written answer
from UK health minister Ben Bradshaw.
"Where there are increases in the value of the reset contract
when compared to the original contract value, this is due to
changes or additional requirements that have been negotiated as
part of the reset agreement and these have been approved through
normal governance arrangements," said Bradshaw in parliament.
"There are no changes to the cost of delivering the
requirements of the original contracts," said a Connecting for
Health spokesperson. "Additional work for new requirements and
additional functionality will attract additional costs: as was
always part of the contract."
"The updated Spine contract deals with new requirements that
have arisen since the contract was let and include such
functionality to support the delivery of 'Payment by Results',
the 18-week referral programme and the further development of the
Secondary Uses Service to support wider NHS work and
requirements," the spokesperson added.
BT declined to comment, citing commercial confidentiality. The
firm will also receive more money following the reset in May 2007
of its contract to act as local service provider in London. It will
earn an additional nine percent, taking the deal's value to
All five of the contracts for the local service providers have
been reset to provide payment increases. In September 2005, Fujitsu
negotiated an increase of 32 per cent in its fee for providing
services to the NHS in the south of England, from £896 million to
The firm was fired from the National Programme for IT in May
2008. Bradshaw said that Fujitsu's liability to the government is
capped at £100 million for each contract year, to a total of £500 million, while
the government's liability was capped at £50 million for each contract
In January 2007, CSC got increases of seven per cent on its
payment for the north-east region, to £1.179 billion, and 14 per cent for
both the eastern region, which is now worth £1.064 billion, and the north
west and West Midlands area, now worth £1.11 billion.