Fujitsu seeking £700m over NHS IT contract termination

Fujitsu is reported to be seeking £700m from the Department of Health after its £1bn contract as a local service provider on the National Programme for IT was terminated.

The Liberal Democrat Shadow Health Secretary, Norman Lamb, said the disclosure was further evidence that the NPfIT was hopelessly flawed. He said it was a "centrally-imposed project that has not been properly thought through from the start and was never subjected to a proper cost benefit analysis".

He added that the scheme has "caused enormous frustration and exasperation for doctors and hospital staff ". He supported a call made by 23 leading academics that there should be an independent review of the scheme.

The Independent has reported that the NHS is "facing unprecedented £700m legal action" from Fujitsu, the local service provider in the south of England. It quoted "sources close to the negotiations" as saying that Fujitsu was ready if necessary to go to court to press its claim.

Computer Weekly understands that the claim is not a writ but a notice in advance of possible legal action.

Fujitsu has not confirmed the £700m figure. It told The Independent, "At the moment we are in dialogue with the NHS and we hope to come to a satisfactory outcome."