DH looks to IT suppliers for savings

Health minister Simon Burns has said that the Department of Health is targeting ICT products and services worth £6m in order to make reductions in public expenditure.

In response to a written question from Gordon Bank, the Labour MP for Ochil and South Perthshire, Burns said the DH is working with its suppliers on an ongoing basis to maximise value for money.

Bank had asked: "How many of his [Burns’] department’s contracts with its suppliers are under review as a result of the recently announced reductions in public expenditure; and what the monetary value is of all such contracts which are under review.”

Burns replied: “From May 2010, the department has targeted categories of spend worth approximately £19.5m in the first instance. This is for ICT products and services, travel, office supplies and catering. The breakdown of this figure is: ICT products and services – £6m and travel, office supplies and catering – £13.5m.”

Burns also said that officials have met or will meet suppliers, who will also be engaged in discussion with the Cabinet Office and Office of Government Commerce, which launched reviews of government contract and spending earlier this year.

The DH estimates that five officials are spending a proportion of their time working on the renegotiation of existing contracts. However, Burns said it is not possible at this stage to provide a savings figure, how much expenditure will be incurred or when such renegotiations will be completed.

Earlier this week, Burns provided another written answer in response to a question from Mike Weatherly, the Conservative MP for Hove, regarding how much the NHS had spent on IT in 2009.

Burns said that NHS IT spending amounted to £1,624m, with NHS trusts spending £915m, primary care trusts £682m and strategic health authorities £27m in the financial year 2008-9.

He added: “The National Programme for IT expenditure on behalf of the NHS for the 2008-9 financial year amounted to £1,063m, comprising revenue expenditure (£528m) and capital expenditure (£535m), which includes non-information management and technology associated costs.”

Around £322m was paid to companies outside the UK by NPfIT. These companies included CSC, whose contract was worth £213m last year. Fujitsu received £37m and Atos was paid £33m.

Links: Written answer to Gordon Bank. 

Written answer to Mike Weatherly