Fujitsu fired by NHS

Loses £896m 10-year contract

2 June 2008 10:47 GMT / By Katie Scott

The NHS has fired Fujitsu just 10 months into negotiations to start a 10-year project to put all NHS records on computer.

The manufacturer had been contracted to work on a £896m 10-year installation of the new system in the south of England.

This part of a £12.7bn project to haul the NHS into the 21st century.

Fujitsu has hit out, according to VNU, blaming the NHS for "trying to change the terms of the contract to make the system's delivery more flexible, but without spending any more money".

Meanwhile, Connecting for Health, the NHS body that organises contractors, has released a statement saying: "Regrettably, and despite the best efforts of all parties, it has not been possible to reach an agreement on the core Fujitsu contract that is acceptable to all parties".

"The NHS will therefore end the Fujitsu contract early by issuing a termination notice."

"We acknowledge the work that Fujitsu has done in providing key information services to trusts in the south of England, and recognise its commitment to providing a smooth transition to new arrangements."

The NHS project is now a staggering 4 years behind schedule and this latest glitch is expected to add to the delays.

Fujitsu's exit follows on from that of Accenture.

Critics are already arguing that the initial contract were ill thought out and rushed through, which has led to the problems further down the line.

In separate news, the NHS has faced criticism for its carbon emissions.

The Sustainable Development Commission says that the NHS accounts for 2.7% of total carbon emissions in the UK.

And among the ways to cut these would be increased use of teleconferencing to cut emissions caused by patients, visitors and staff travelling.

Good luck to the contractor who gets that job.