Full-page FT article today on NHS IT programme

The Financial Times says today that the Department of Health and the PM David Cameron would, if they could, "dearly love to be shot" of the biggest supplier to the NPfIT, the US -owned Computer Sciences Corporation. It adds that CSC is...

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The Financial Times says today that the Department of Health and the PM David Cameron would, if they could, "dearly love to be shot" of the biggest supplier to the NPfIT, the US -owned Computer Sciences Corporation. 

It adds that CSC is responsible for installing systems in two-thirds of England but "by a mile holds the programme's record for missed deadlines".  The FT piece comes a day before the National Audit Office publishes its third report on the NPfIT. 

CSC remains bullish on its NPfIT prospects, however. Guy Hains, its President, Global Healthcare, told an investor conference last week that 

his company has plans to "grow this vertical [healthcare] market for CSC by $1bn over the 2011 to 2014 period. 

increase : 

Our objective and it’s a very real objective is to grow this vertical market for CSC by $1bn over the FY11-14 period. Why we find this market so attractive: it’s big. It’s a $50bn market globally. It’s growing at 3-5% annually but that frankly belies what’s going on in this market. There is a whole wave of cost savings taking place, be that a hospital or a government and a whole wave of innovation taking place to find new ways to address the healthcare challenge. There is a lot of turbulence and activity. We already have a strong position in this market. What I am going to be talking about is supercharged growth…

It’s a service mix that can be a change agent in this market. Our departure point: we are active in the whole value chain in healthcare. We are a $1.3bn player in the market. Using announcements we have made in last few months; in November last year we announced a contract for revamp of CMS oversight of medicare. US agenda. On april 25 we built on our industry first with announcement with award to CSC re 66 hospitals and 9.4m in Chicago area - interchange health records. A global initiative which is happening in the US. We are part of the incentives and part of delivery… 

Step change for CSC in this market is our planned acquisition of isoft. Complete the transaction in early July. It builds out our complete capability: integrator, strong operations, security, and ability to pout in software as a service. Centre stage is intellectual property and product. Today we have 20 strategic products but we will be adding a 100 product portfolio with isoft - products we know welll. Will deliver them in new ways. Some will be taken very rapidly to software as a service environment. CSC is strong in UK and US, isoft have a very good position in Germany, Australia and Holland. Both have growth plans in Middle East and America. The health models of the future will be software-based.    

  
**

"NHS will yield strong revenues for us during this planned period as well. We do anticipate concluding an agreement - we’ve been working on the MoU [memorandum of understanding] for some time. It is subject to review through two government reviews right now, which certainly requires that stamp in the passport before we go forward. Both those reviews are imminent."

Hains added that "much of our go-forward position remains unchanged". So, of the work CSC does in picture archiving, the delivery of ambulance systems and its GP programme "all of those are ongoing and are not the subject of the realignment of the contract".

The MoU relates to the deployment of Lorenzo. “As Mike described, we’re really through the bulk of that in terms of software creation, a line of code, we’re 80 percent done. But we’ve got some important work to do and it relates to the clinician use and the very much frontline use of the system, and we’ve been learning with the NHS about the better way that we can deliver that.

So just a few highlights around that: We’re doing it in smaller chunks - we’re doing it in ten smaller delivery units rather than two major releases. And we’ll be able to deploy those in a separable, incremented way. There’s no question that that will help digestion as it goes into the NHS.

In terms of working with early adopters, we’re moving to not just a rebranding but a radical change in development. Rather than develop the software and then go through extended testing, we are bringing the engagement of those lead clinicians and lead trusts upstream right into the requirements, refinement and capture stage, so that will allow us to shorten the time to market for the whole programme. 

 

Additionally we’re putting the governance into the programme that means that one single trust doesn’t dominate in its requirements. We’re getting a more common requirement through an expert user group. Lots of process improvements , and through this planned period we will be in volume rollout.

We’ve got government reviews to complete. That’s imminent. We’ve done a lot of work regarding alignment with the NHS, and the MoU in that sense is ready to go.

**

Ongoing NHS component of our business which is still the largest programme globally is the reference point for most of our conversations with other national governments. It’s that experience, the learning points, the good and the bad, that carry forward into most of our development work we are doing elsewhere ie work in Australia…

Recruited last year over 100 people globally who are clinically qualified., they are interested in IT but are doctors, nurses, radiograophers, individuals who aree of the industry. Steer us through product and changes. Isoft have a substantial cadre of individuals. 

What will really distinguish us in the marketplace?

The systems we see today are not well connected and back-office are very much first generation. As a global issue and a govt issue there is none higher. The pressures are immense and the opportunities are great. Being global means something in this industry. Customers want to know about 





"NHS will yield strong revenues for us in this period as well. We do anticipate concluding an agreement - we’ve been working on the MoU [memorandum of understanding] for some time. It is subject to two government reviews right now, which certainly requires that stamp in the passport before we go forward. Both those reviews are imminent."

Hains added that "much of our go-forward position remains unchanged". Of the work CSC does in picture archiving, the delivery of ambulance systems and its GP programme "all of those  are ongoing and are not the subject of the realignment of the contract".

The MoU relates to the deployment of Lorenzo. As Mike described, we’re really through the bulk of that in terms of software creation, a line of code, we’re 80 percent done. But we’ve got some important work to do and it relates to the clinician use and the very much frontline use of the system, and we’ve been learning with the NHS about the better way that we can deliver that.

 

So just a few highlights around that: We’re doing it in smaller chunks - we’re doing it in ten smaller delivery units rather than two major releases. And we’ll be able to deploy those in a separable, incremented way. There’s no question that that will help digestion as it goes into the NHS.

 

In terms of working with early adopters, we’re moving to not just a rebranding but a radical change in development. Rather than develop the software and then go through extended testing, we are bringing the engagement of those lead clinicians and lead trusts upstream right into the requirements, refinement and capture stage, so that will allow us to shorten the time to market for the whole programme. 

 

Additionally we’re putting the governance into the programme that means that one single trust doesn’t dominate in its requirements, we’re getting a more common requirement through an expert user group. 

 

Lots of process improvements , and through this planned period we will be in volume rollout.

 

We’ve got a government review to complete, and that’s imminent. We’ve done a lot of work regarding alignment with the NHS, and the MoU in that sense is ready to go.


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