CSC confirms $1.5bn NHS IT write-off

CSC confirms $1.5bn NHS IT write-off

Discussions between government and supplier over scope of National Programme for IT work continue

CSC has confirmed it is to write-off almost $1.5bn as a result of its involvement in the National Programme for IT (NPfIT).

In December 2011 the company, which had been contracted to supply electronic patient records systems to a number of NHS trusts, warned shareholders it may lose an amount equal to, or in excess of, its $1.49bn investment in the NPfIT.

That write-off was listed in its third quarter results, published this week , which also recorded a $204m revenue reduction related to CSC's ongoing negotiations with the NHS.

The negotiations concern amendments to CSC's NPfIT contract, the results of which could see the scope of work the company carries out for the NHS reduced and the value of its contact lowered.

"We've been engaged in the discussions as you know for some time, but recently with the officials from the NHS as well as representatives from other relevant government departments, and I'd say these discussions have evolved into a potential go-forward framework that is currently in the government's review process," Mike Laphen, chief executive of CSC, told a conference call to discuss the company's third quarter results.

"We remain in discussions with UK government officials to reach a satisfactory way forward," he added.