NHS strikes money-saving IT deal

IT costs have spiralled

The NHS has struck a discounted deal with computer giant Microsoft to renew its licence for desktop products.

The Department of Health said the deal would save the NHS £330m on the current terms.

The fact that NHS staff would continue to use familiar software would also reduce the risk of staff making errors.

The move follows reports the that modernisation of NHS computer systems could cost as much as £31bn- five times the original estimate.

This is an exceptionally good deal for the taxpayer. John Hutton

It was also announced that Microsoft would be investing £40m to develop health specific software applications to improve patient care and safety across the NHS.

Under the new arrangement, the NHS will be able to use up to 900,000 licences compared to the current 500,000, at no extra cost.

The new user interface being developed by Microsoft will not be charged to the NHS - but the health service could also benefit financially from any exploitation of the system by Microsoft around the world.

The first version of the health specific user interface is expected to be available early next year.

Microsoft is also developing customised versions of Office and Windows to create a "consistent look and feel" to NHS computer users.

Benefits for patients

Richard Granger, Director General NHS IT, said: "This is a major investment by Microsoft to help develop a common look and feel of all clinical applications to improve patient care and safety across the NHS.

"This will speed up the process of dealing with patients and reduce the risks of unfamiliarity of different systems.

"This single interface for health could benefit the NHS financially as we have an agreement that exploitation of the interface around the world by Microsoft would result in the NHS receiving a share of the licensing fees."

Mr Granger said the NHS's unique position as the world's largest procurer of IT services meant it could reach major agreements such as that with Microsoft.

Health Minister John Hutton said: "This is an exceptionally good deal for the taxpayer that genuinely reflects the buying power of the NHS and our commitment to value for money procurement.

"NHS staff will have access to the latest desktop software.

"This supports our drive to help modernise the NHS through sound investment in 21st century technology."

Conservative shadow health spokesman Dr Andrew Murrison said: "On the face of it this seems positive but I am interested to know what's in it for Microsoft and whether the customised versions of Office and Windows it is apparently offering free of charge will be acceptable to users.

"Ministers are obsessed with achieving a corporate look and feel for their grand NHS computer project.

"Doctors are worried that they will get IT systems imposed from on high that will be unhelpful in treating patients."

The new NHS computer system will eventually lead to all patients having an individual electronic record, and enable doctors to book hospital appointments from their surgeries.