Emis has announced it has lost preferred vendor status for GP practices in Wales.

The clinical software systems provider said the decision had been made by NHS Wales following a “planned procurement review process” which took place in the first quarter of 2017.

It means 195 practices will now have to be transitioned to a new supplier through 2019/20.

A statement from Emis added: “EMIS will continue to generate revenues on a reducing basis until the transition process is complete.”

NHS Wales Informatics Service told Digital Health News in a statement that it uses a “rigorous procurement process to select new suppliers of goods and services” in a bid to encourage “free and open competition”.

The statement added: “It is the intention to award the contract for GP clinical systems and services to two suppliers – Vision Health Ltd and Microtest Ltd.  Both suppliers demonstrated a strong commitment and ability to meet core clinical and technical requirements and the wider Primary Care agenda, as well as further integration with the NHS Wales’ digital services platform.

“A third tender, submitted by EMIS Health Ltd, did not meet a number of the necessary evaluation criteria relating to the financial, contractual and functional requirements.”

Emis hit the headlines this month when it notified investors that it expected to incur penalties “in the order of upper single digits of millions of pounds” after failing to meet unspecified contractual requirements in its GP Systems of Choice contract, which governs the supply of electronic patient record systems.

The provider failed to meet standards across three categories in its service-level agreement with NHS Digital regarding its Emis Web GP electronic patient record product.

The company did not specify the areas in which it fell short, or incurred the penalties, however a spokesperson said they related to lower-priority system issues and reporting.