The Department of Health has confirmed that it has terminated the £257m contract for diagnostic services in North-west and South-west England.
The DH in April suspended the contract after an independent review following concerns about quality and administrative procedures. The contract had originally been awarded to Atos in December, who had signed Cerner as their software supplier.
Atos Healthcare (formerly Atos Origin) was awarded the two contracts in December 2006 to provide diagnostic services, managing the entire process from appointment booking through to test results reporting.
However, as EHI reported in April, the contract was suspended by the DH after initial project work with eight PCTs in the North-west resulted in some ultrasound and MRI scan patients having to be recalled to repeat tests performed under the new systems.
Health minister, Ben Bradshaw, said: “It has become clear that Atos Healthcare is not in a position to deliver the services to the agreed timetable and we have decide not to proceed with this partnership.”
In a statement late last night, the DH confirmed: “The Department of Health today announces that planned diagnostic services to be operated by Atos Healthcare in the North-west and South-west will now not proceed.
“The decision was taken after it became clear that Atos Healthcare was not in a position to meet the contractual conditions and establish services to the timescales agreed.”
Atos awarded the contract to provide the systems to Cerner in March. At the time, Cerner said it was ready to provide Atos with an integrated solution to support diagnostic imaging based on their patient administration system, radiology information system and picture archiving and communications system.
However, this was unable to commence following the suspension of the contract, after an early implementation in the North-west showed operational issues had led to incomplete patient information being included and delays in reporting diagnoses.
An NHS North West spokesperson told EHI: “A joint investigation was instigated following the suspension of the ultrasound and MR scan provided by Atos Origin as part of the early service delivery contract for diagnostic services. This service ran from December 2006 until it was suspended in March 2007. It was originally anticipated that up to 900 patients would have to be re-scanned.
“Local arrangements were put in place in order to complete the re-scans using existing NHS facilities and units and some services from the independent sector. In a parallel but separate development, we have been working with Atos Origin to try and address other issues that led to the delay in the delivery of the full service contract, which was due to start in April this year. Unfortunately these issues were not resolved and the Department of Health have now terminated this contract.”
Atos confirmed that the contract had been terminated, but was unable to clarify what the arrangements would be for work done to date.
A spokesperson said: “The Department of Health yesterday advised Atos Healthcare that it did not intend to proceed with its centrally procured Diagnostic Services contracts for the North West and South West regions. We are in the process of engaging in discussions with the Department of Health to agree the final termination details of the contract.”
Cerner told EHI that as contract details were still in negotiations, they were unable to clarify what their position is with this contract.
A spokesperson said: “We can confirm that earlier this year Cerner was selected to provide Atos Origin with a solution to support diagnostic imaging services. At this stage, we are unable to give you any additional information, however we hope to be able to provide you with an updated statement as more information becomes available.”
In a separate unrelated deal Atos is also responsible for the national Choose and Book service, for which it uses software supplied by Cerner.
The diagnostic services were purchased by the DH to ensure that patients can be seen and treated within 18 weeks of their initial referral. It was hoped that by providing GPs with direct access to the diagnostics, patients will either know longer require referral into acute care or receive results to support early diagnosis and treatment.
Bradshaw said that despite the termination of the deal, the DH will continue to work with the independent sector.
“The independent sector has played an important role in delivering the Government’s reforms of the NHS, providing high and fast treatment for patients who used to wait up to 18 months for an operation ten years ago.
“We are committed to bringing in independent sector providers into the NHS where they meet a need for capacity, meet the local needs of patients and where they offer value for money.”
Both NHS North West and NHS South West assured EHI that plans are in place to ensure services and patients are not affected by the contract termination.
“The SHA will be working with local primary care trusts to put in place alternative arrangements to meet the demand for MR and ultrasound scans caused by both of these developments. This is crucial if we are to bring down waiting times for patients and make sure that no one waits more than 18 weeks in total for their treatment to start by the end of 2008,” and NHS North West spokesperson said.
“Existing contractors will continue to provide high-quality diagnostic services across the region as normal, and patients will not be affected. Waiting times for diagnostic services in the South West are falling dramatically.
“The average wait for diagnostic tests in the South West has fallen from 14 weeks to under ten weeks during the past 12 months. We are working closely with Primary Care Trusts to increase local capacity so that the NHS continues to make strong progress in reducing waits for diagnostic tests,” an NHS South West spokesperson added.
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