Fujitsu Loses British Deal
The National Health Service’s (NHS) Connecting for Health agency in Britain announced that they have terminated a contract with Fujitsu. Fujitsu was responsible for implementation of a new healthcare records system in the area south of England.
The initial agreement forged by the two commenced in January 2004 and had an estimated worth of $1.8 billion. The contract was expected to continue through 2013. The deal was one component of the effort to computerize all health records across England.
According to NHS, the deal is being terminated because of contract issues. The two organizations had been working to resolve such, which could not be achieved through negotiations ongoing for almost one year.
According to the Financial Times, the problems which could not be resolved concerned NHS requirements for a system with increased flexibility. Such a platform carries a higher price tag, which NHS was apparently unwilling to pay.
Fujitsu requested additional compensation to complete the revised request. If such was not available, the company offered to continue with the contract as initially crafted.
May 30, 2008 Related topics: Contract Awards