NHS Trusts pull networks from 'too costly' PFI deals

20 Aug 1997

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NHS Trusts are withdrawing IT allocations from their private finance initiative (PFI) procurements because of confusing selection processes, and the high cost of implementing information systems.

According to systems suppliers, the potential results could be devastating.

Bishop Auckland Hospital's NHS Trust withdrew the IT portion from its initial PFI application to build a new hospital in County Durham, because it was "financially unviable and uneconomical".

A spokesman at the Trust said: "IT was included at first, but we withdrew it because it was too costly. Siemens Nixdorf was part of the original consortium to provide us with IT, but its offering was too expensive so we decided to put IT out as a separate tender."

The effect will be damaging to the hospital and to the PFI procedure, according to Richard Grove, marketing and planning manager for healthcare at the Sema Group.

"How can you build a hospital without considering the systems requirements? You risk the IT side running slower than the building procurement which can then present huge problems. The IT element cannot safely be detached."

Roger Johnson, marketing manager of health solutions at Siemens Nixdorf, said: "Many NHS Trusts seem to be putting in separate IT applications, but including IT in the original can, ironically, result in cost savings and not vice versa."

Dartford and Gravesham NHS Trust has also withdrawn IT from its initial PFI application.

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