Details have emerged of just exactly what the Department of Health meant when it talked last week about its “promising settlement” with National Programme supplier CSC: it’s managed to get back more than £1.8bn from the wreck, much more than many of us had expected.
The money will now be re-directed back into the NHS, according to Health Secretary Andrew Lansley, when he announced the settlement this morning. But precisely how is yet to be worked out, especially if it will be put back into health informatics or distributed across other parts of the health service.
The amount is equivalent to $2.8bn, which would be much bigger than the $1.5bn that the company told Wall St it was writing off. Last week, it seemed that CSC would gain some money out of the deal going forward, but it’s hard to see exactly how much.
The news brings to an end – on paper – at least a year of DoH-supplier contract negotiations, which all stem from non-delivery of the Lorenzo electronic patient records in the areas where CSC is the ‘Local Service Provider’ of National Programme deliverables.
We’ll add more details of this potentially landmark deal alter as they emerge, presumably over the course of the day.