NHS England silent on tech fund delay

NHS England has been unable to answer repeated questions about when it will announce the list of trusts that made successful bids to the second round of its technology fund, as rumours swirl that the money on offer has been slashed.

The delay in confirming which organisations will receive money from what is officially called the ‘Integrated Digital Care Fund’ has frustrated several trusts, which have told EHI their projects and finances may be affected as a result.

At EHI Live 2014 in Birmingham, Beverley Bryant said an announcement had “cleared the wall of NHS England” and become stuck in the inbox of Danny Alexander – the chief secretary to the Treasury.

NHS England’s director of strategic systems and technology, said she was “beyond sorry” about the delay, and was hoping an announcement would be made by 7 November.

However, three weeks on, repeated calls to NHS England by EHI have been met with repeated statements that the announcement remains “imminent”.

At the same time, trusts with unsuccessful bids appear to have been given the bad news, but trusts with successful bids have yet to be told or to be given details of what they can expect.

One trust contacted by EHI has been told that it will receive a percentage of the funding requested, with no information about when or whether any further money will be forthcoming.

Another trust source told EHI the delay is a "huge" frustration. "I don't want to start paying contractors unless I know I've got a good 12 to 15 months of funding, so it's affecting our ability to move forward,” they said.

"My concern is that if we don't get an answer in the next few weeks, we're at risk of losing the contractors with all of the knowledge, because we can't afford to extend again; and that's going to leave a big hole."

The source said the uncertainty is also having an impact on planned bids for the second round of the Nursing Technology Fund, with trusts unsure whether they will be above or below its threshold for funding.

A key IT figure at another trust expressed similar concerns. "We're pushing ahead and doing a business case as planned, and we very much hope we get it, but a few other trusts will struggle."

This source also noted that the ongoing delay might make it difficult for trusts to spend any funding they did receive before the end of the current financial year. Under Treasury rules, this might lead to some money being lost.

Similar delays to the first, or ‘Safer Hospitals, Safer Wards: Technology Fund’, meant that around £60m of its £260m was clawed back.

However, there is concern that the second round of tech funding has already been reduced, with another source telling EHI that it has been cut from £240m to £140m.

There is speculation that the fund has been slashed to enable the government to find more money for “winter pressures”, ahead of the general election due on 7 May.

Chancellor George Osborne will give his annual autumn statement to Parliament on 3 December, and there has been speculation among political commentators that he will find as much as £1.5 billion for the NHS.

While the delays might be out of NHS England's control, trusts and suppliers contacted by EHI argued that contingencies should have been built in, given the problems experienced with the first round.

"I think it's been better than last time, and it is an evolving process, but I think they're probably jumping in feet first and don't plan ahead enough,” one supplier said.

Richard Jefferson, NHS England's head of business systems, acknowledged the frustration over the lack of communication while speaking at the Open Source Open Day in Newcastle.

"I imagine that if I open the floor up to questions, I'll get about 50 people asking me when they'll be told and I can't answer that."

However, Jefferson said he had been told that all unsuccessful bidders have been contacted by NHS England.

EHI reported in August that 226 bids worth £360m had been made to tech fund 2; which is due to release £160m in this financial year and £80m next.

The focus of the fund is expected to be digital maturity within trusts, and integrated digital care record or information sharing projects; for which trusts can make bids with other organisations, including councils.