Cost of abandoned NHS IT system to hit £10bn

Taxpayers will continue paying the price for bungled electronic patient record programme, say MPs

The cost of a scrapped government initiative, intended to provide NHS patients with individual care records is predicted to continue rising significantly, MPs have warned.

Conservative MP and member of the Public Accounts Committee (PAC) Richard Bacon described the ambitious scheme – shelved two years ago – as one of the “most protracted and worst contracting scandals in the history of the public sector … both in the scale of money involved and the scale of the mistakes”.

In 2011 the Department of Health announced plans to dismantle the scheme to upgrade NHS computers systems, putting the bill of the project at £6.4b.

Later, officials projected the costs of the scheme would reach £9.8b, but a new report published by the PAC forecasts the total bill may top £10b.

The PAC said the Department’s £9.8b forecast was modest given that outstanding costs, such as the project’s termination of Fujitsu’s contract in the South, of England had not been taken into account.

“The public purse is continuing to pay the price for failures by the Department and its contractors,” the report said.

The Committee also criticised the Government’s decision to renegotiate its original contracts, worth £3. b, with consultants CSC for the Lorenzo care record system across 220 trusts in the North, Midlands and East, despite delays and problems.

The department suggests that only 22 trusts in total will now accept the Lorenzo electronic patiient record system.

PAC member Richard Bacon said:

"We still don't know what the full cost of the National Programme will be. The department's latest estimate of £9.8 billion leaves out the future costs of Lorenzo or the potential large future costs arising from the department's termination of Fujitsu's contract for care records systems in the South of England.

“Parliament needs to be kept informed not only of what additional costs are being incurred, but also of exactly what has been delivered so far for the billions of pounds spent on the National Programme."

He added: ”It should be plain to anyone that we are witnessing systemic failure in the Government's ability to contract.”

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: 3rd Line Virtualisation, Windows & Server Engineer

£40000 - £47000 per annum: Recruitment Genius: A 3rd Line Virtualisation / Sto...

Recruitment Genius: Refrigeration and Air Conditioning Service Engineer

£26000 - £35000 per annum: Recruitment Genius: A successful national service f...

Recruitment Genius: Business Development Executive / Sales - OTE £25,000

£15000 - £25000 per annum: Recruitment Genius: This is an opportunity to join ...

Recruitment Genius: Sales Administrator - Fixed Term Contract

£17500 - £20000 per annum: Recruitment Genius: We currently require an experie...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific