CSE-Servelec has announced to financial markets that it has completed contract negotiations with BT to provide its RiO system to NHS community, mental health trusts and child health trusts in London.

BT is the prime contractor, or local service provider, responsible for upgrading health service IT systems in the capital as part of the £6.2bn NHS digitisation project.

As first exclusively reported by EHI yesterday BT has already signed a deal with Cerner to be its strategic software supplier for acute trusts, replacing GE Healthcare. As part of BT’s new portfolio approach of clinical software suppliers, replacing the single solution approach, CSE-Servelec is now confirmed as the sub-contractor for community systems.

CSE-Servelec said it had been selected by BT as its "strategic partner to provide the RiO Care Record System to the mental health trusts, community health trusts and child health trusts across London as part of the National Programme for IT."

The company added that the change from interim to strategic partnership with BT was subject to further negotiation with and approval by NHS Connecting for Health. A process which is due to be completed in December 2006.

The value of the new contract awarded by BT to CSE-Servelec is £36m over four years. CSE-Servelec says the project will be implemented over four years, with a maintenance contract continuing to 2014.

The newly announced contract is in addition another, worth £10m, awarded in December 2005 for the installation of RiO as an interim solution to meet the immediate business needs of London trusts.

CSC-Servelec declined to answer any questions for E-Health Insider, saying it was contractually forbidden from commenting on the contract.