BT gets extra £55m from NHS IT programme

BT’s contract to provide IT services to the NHS in London has been “reset” with the supplier getting payments worth an additional £55m over the lifetime of its billion pound contract.

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BT’s contract to provide IT services to the NHS in London has been “reset” with the supplier getting payments worth an additional £55m over the lifetime of its billion pound contract.

The additional payments were revealed by health minister Ben Bradshaw in a parliamentary written answer.

“In the course of the reset of the BT contract for London, new requirements and additional services were identified by the NHS, for which a separate business case and funding of £55 million—£41.8 million capital and £13.2 million revenue—over the lifetime of the contract was subsequently approved.”

The health minister added: “This does not represent an increase in the original cost of the contract for the original specification, but reflects new requirements for additional functionality.”

The negotiations were concluded last summer, Bradshaw said. The minister also insisted that there had been has been no renegotiation of primary supplier contracts let by national health service Connecting for Health under the national programme for information technology.

“Reset is a normal, repeatable, process, for contracts with a long lifetime to ensure that their ongoing delivery reflects progress to date, current priorities, and deployment plans for the future, and that they continue to support the evolving needs of the NHS,” he stated.

The NHS is currently in negotiation with Fujitsu, which supplies IT services to the health service in the south of England. In 2006 Accenture pulled out of its two contract as a Local Service Provider to the NHS in north-east and eastern England, taking a balance sheet hit of $450m in addition to Accenture losses on NHS work last year of more than $110m.

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