The Department of Health’s (DH) financial exposure to IT services provider CSC has been reduced by just over £100 million.
CSC estimated in its latest quarterly results that if the NHS terminated its £2.9 billion contract with them, it would cost the NHS up to £329 million as of 29 June 2012.
CSC had said in its prior quarterly results that termination of the contract would cost the NHS a maximum of £430 million as of 30 March 2012.
The DH and CSC are still engaged in contract negotiations which are scheduled to be resolved towards the end of August. The signing of this deal has been delayed twice from the original date of 31 March 2012.
CSC’s financial reports claim the company lost £62 million in the NHS contract during the first quarter of 2012.
In February, the company also lost $1.5 billion after failing to provide NHS trusts across two-thirds of England with the Lorenzo patient records software, due in 2007.