BT fined for missing NHS IT deadlines

BT has missed delivery deadlines for the National Programme for NHS IT and is to pay a six-figure sum in compensation for the delay.

The fine is the first time a supplier has suffered from the strict terms and conditions of the National Programme contracts.

The company missed two of the 56 deadlines it has faced so far in its implementation of the N3 broadband network.

It is also behind schedule in its two other deals - delivering the data spine at the heart of plans for electronic patient records, and regional implementation in the London area - but damages are not yet being applied.

'The authority has requested that BT pay an appropriate sum in compensation. The sum is still under discussion and it is not appropriate to speculate about the amount,' said a spokesman for the National Programme.

'BT is striving to address the small number of shortcomings from this first phase of work and continues to work constructively with the NHS to deploy broadband connectivity. In all cases, the contracts which were put in place are addressing the circumstances which can occur in large scale IT programmes and the contracts are proving to be effective.'

The delays in the data spine and London implementation are not serious, says BT.

'We have caught up with the N3 deadlines now but we have to meet any costs that the NHS incurred. The whole project is full of deadlines - some are interim ones, and some are key ones,' said a spokesman for BT.

'In some areas we are ahead and in some we are a bit behind but we are catching up and have confidence in our ability to deliver.'