Department of Health and CSC in deadlock over Lorenzo records system

The Department of Health and CSC have failed to meet the deadline to agree new terms on the troubled electronic records systems Lorenzo.

The deal, intended to release a number of NHS trusts from their contractual obligations to use Lorenzo systems, was to be signed on March 31. As part of the agreement, CSC redeployed 30% of its work force in the UK.

Guy Hains, CSC president of healthcare, told analysts in a conference call that both parties had renewed the standstill until 1 June 2012, when it is hoped the agreement will become legally binding. Hains said fundamental changes in the NHS to devolve power to local authorities had stalled the process.

“This reflects the complexity of change and the need for detailed agreements. It reflects the way the NHS is changing, devolving power and the need to consult widely. Both parties want this to work and no road blocks have been encountered.”

The continuing discussions relate to the "rescoping" of Lorenzo, said Hains. The revenue objectives for the firm in the UK in the next year were between 2-5%, of which Lorenzo “would not take a significant part," he said.

In February CSC revealed it had written off nearly £1bn ($1.5bn) from its £2.9bn NHS IT contract, after it was forced to renegotiate the deal following major problems in delivering on its commitments.