Importance Score: 75 / 100 🔴
NHS Awards Billions in Digital Health Record Contracts to US Tech Firms
The National Health Service (NHS) has awarded contracts valued at £3 billion to two prominent US technology corporations for the creation of digital health records, despite bids from UK-based suppliers reportedly being more cost-effective. This development emerges amid escalating global trade tensions involving the US and heightened scrutiny over NHS spending on international IT systems.
Concerns Raised Over Foreign Tech Contracts and Value for Taxpayers
This decision arrives at a time when the US is initiating a global trade dispute, potentially impacting the UK economy. Furthermore, questions are being raised about the NHS prioritizing expensive foreign technology solutions instead of investing in British businesses and potentially more economical domestic alternatives for electronic patient record (EPR) systems.
In a move to streamline operations and reduce expenditure, the government recently disbanded NHS England, previously described as the ‘biggest quango in the world’. Simultaneously, legislation has been enacted to digitize patient medical records across all NHS facilities, including hospitals, GP surgeries, and ambulance services throughout England. The aim is to enhance patient care through improved access to digital health information.
Oracle Secures Significant NHS Deals
Oracle, a US tech giant led by founder Larry Ellison, one of the world’s wealthiest individuals, is a major beneficiary of these contracts. Analysis of awarded EPR contracts reveals that Oracle, through its Cerner healthcare division, has secured agreements exceeding £1.5 billion from various healthcare trusts, many of which are currently facing budget deficits.
Notable contracts include an £85 million agreement with Sheffield Teaching Hospitals and a similarly valued contract with Oxford Health. However, like numerous large-scale EPR implementations, these projects have encountered postponements, with system launch dates being delayed to resolve technical issues within the newly implemented IT infrastructure.
Epic Systems Also Lands Billion-Pound NHS Contracts
Epic Systems, another US-based technology firm, has also been awarded substantial contracts, totaling approximately £1.6 billion. These deals encompass a major £450 million contract with Guy’s and St Thomas’ and King’s College Hospitals for the implementation of EPR software throughout their network of London hospitals.
Further significant agreements for Epic include £181 million and £200 million contracts with Manchester University and Cambridgeshire and Peterborough NHS foundation trusts respectively.
Cost Analysis of EPR Providers
According to healthcare IT consultant Paul Brown, Epic and Oracle-Cerner are recognized as the most premium EPR providers. Trusts are reportedly spending an average of £4.3 million and £2.9 million per month on Epic and Oracle-Cerner solutions, respectively.
Brown questioned the cost-effectiveness of these high-value contracts, stating, ‘While Epic and Cerner are substantial entities offering comprehensive systems, the question remains whether their solutions justify costs that are two to three times greater than alternative options. Is the resulting patient care proportionally superior?’
Prioritization of British Businesses and Data Concerns
Concerns over the allocation of NHS funds to overseas companies have been voiced, particularly in light of a previous controversial £330 million contract awarded to US spy tech firm Palantir for a large-scale data platform, which sparked privacy debates regarding patient medical information.
Former Health Secretary Steve Barclay has advocated for NHS leadership to prioritize local suppliers to achieve cost savings, reduce patient waiting lists, and enhance clinical outcomes.
Barclay emphasized the need for the government to ‘discontinue expenditure on international corporations lacking dedication to the NHS and instead prioritize British businesses’, specifically highlighting the substantial investment in EPR systems as an area for potential savings and better value for taxpayer money.
Report Highlights Benefits of Centralized Digital Records
A report by the Tony Blair Institute, a think-tank established by the former Prime Minister and financially supported by Larry Ellison’s philanthropic organization, suggests that creating a unified digital record containing all patient health and care data would significantly ‘enhance health and care delivery, and ensure the NHS is prepared for the advancements in artificial intelligence.’
Government and Company Responses
A spokesperson for the Department of Health and Social Care stated that they are committed to ‘ensuring every penny of taxpayers’ money was maximised’ in NHS contracts and procurements.
Epic Systems deferred comment to the NHS trusts, stating it was for them to justify their selection of IT providers. Oracle has been approached for comment but has yet to respond.