| The NHS’s £12.7 billion Connecting for | | | | NHS decided to terminate its contract with Fujitsu |
| Health scheme suffered another setback today | | | | after 10 months of renegotiations broke down. |
| when it was announced that they had fired Fujitsu | | | | The renegotiations were marred by increasing |
| - the Japanese IT firm who were one of the | | | | tensions between Connecting for Health and their |
| project’s most important suppliers. | | | | IT suppliers, which were caused by tough |
| This news will anger critics of Connecting for | | | | contracts that were put in place to stop costs |
| Health, who have already slated the project for | | | | from spiralling out of control. However, a Fujitsu |
| being too costly, as well as four years late. | | | | official told the Financial Times that these |
| However, the government defended the costs | | | | contracts demanded too much from them and |
| associated with its scheme and insisted that | | | | this is why they could not reach an agreement. |
| Connecting for Health could potentially produce | | | | It’s estimated that the termination of this |
| more than £1bn in savings by 2014. | | | | contract will cost Fujitsu around £300 million. |
| Connecting For Health is comprised of four main | | | | Fujitsu is not the first company to leave |
| projects. These include a the provision of a | | | | Connecting for Health. In 2006, Accenture, which |
| centralised electronic medical record system that | | | | was responsible for providing IT services to the |
| will contain the details of 50 million patients, an | | | | north and north east of England, decided to quit |
| online ‘choose and book’ system | | | | key parts of the NHS programme. |
| that will allow people to choose and book their | | | | A spokeswoman for Connecting for Health |
| own hospital appointments digitally and an | | | | expressed regret at losing Fujitsu. She said: |
| electronic prescriptions service, as well as fast | | | | "Regrettably, and despite [the] best efforts by all |
| network links between NHS organisations, which | | | | parties, it has not been possible to reach an |
| will link more than 30,000 GP Practices in England | | | | agreement on the core Fujitsu contract that is |
| to nearly 300 UK hospitals. | | | | acceptable to all parties. The NHS will therefore |
| The 10-year Fujitsu contract was worth a | | | | end the contract early by issuing a termination |
| massive £896 million and gave the company | | | | notice. Work has started immediately on planning |
| responsibility for installing IT equipment in NHS | | | | the necessary arrangements. |
| hospitals throughout the south of England. The | | | | |