Contract renegotiations between the main suppliers for the national programme for IT have been “successfully concluded”, according to the Department of Health.

The tough contracts set up under the programme mean service providers are not paid in full until implementations are complete. Two other service providers - Fujitsu and Accenture - have already pulled out.

HSJ understands the re-set negotiations have involved discussions between Cerner, BT and the DH about allowing individual hospital trusts to have more flexibility in their specifications. That is likely to cost more or, at least, require funds to be shifted. BT, the local service provider for London, is responsible for overseeing the implementation of the Cerner Millennium care record system in the capital.

But the system has been beset with delays, including at the Royal Free Hampstead trust which this year blamed IT problems for losses of up to £10m.

BT has refused to comment on press reports that its slow progress in fulfilling its national programme for IT contract will cause it to write down the value of its balance sheet next month. It has not signed a contract with the DH but rather a “memorandum of understanding”.

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