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Wednesday 14 April 2010

NPfIT changes set to throw UK healthcare IT industry into turmoil

PSV HC report April 2010The NHS National Programme for IT (NPfIT) fundamentally reshaped the UK healthcare software and IT services (SITS) market. But the future is now uncertain for the £12bn+ programme, as is the outlook for the two Local Service Providers left in the frame – BT and CSC.

Last week, the Department of Health renegotiated BT’s London region contract, lopping £112m off the cost of the deal. And just before Easter, CSC missed a crucial deadline at Morecambe Bay NHS Trust which could lead to a similar renegotiation.

That won’t be the end of the story. With a General Election looming there’s a very real risk that NPfIT will be de-scoped and contracts renegotiated yet again.

The way NPfIT is managed in future will have a significant and long term impact on the UK healthcare SITS supplier landscape. When the Programme was first launched, ‘centralisation’ was the driver. In future, ‘localisation’ will be the watchword. Trusts will be given greater choice about how they take systems from the LSPs. There will be far more focus on interoperability with existing systems and local ways of working.

This is all good news for the myriad suppliers outside the NPfIT ‘list’ who are battling for a slice of the Department of Health budget. Players that were previously excluded from the NHS can now see an opportunity as Trusts start to procure outside the Programme. They are being joined by hopeful new entrants from a variety of backgrounds.

In our latest PublicSectorViews report – UK Healthcare SITS Supplier Landscape 2010 – we analyse the prospects of the Top 20 suppliers to the UK healthcare market and highlight other firms to watch. You’ll find a SWOT analysis of the leading players, along with commentary on their strategic positioning and, most importantly, our opinion on what lies ahead.

PublicSectorViews clients can download the report today. For more information on how to subscribe to our PublicSectorViews service, please contact Puni Rajah.

Posted by Tola Sargeant at '06:00'