Granger had team ready to take over Lorenzo

Connecting for Health in June had a team on stand-by in India in June ready to take over iSoft if it was unable to agree terms with Computer Sciences Corporation that would allow it to be bought by a rival.

The confirmation that a rescue team for iSoft’s Lorenzo software had been set up by the Department of Health’s IT agency came in a response to a Parliamentary Question answered by health minister Ben Bradshaw on 26 July.

Speaking of the step-in rights that NHS Connecting for Health had under the terms of its contract with local service provider CSC, who sub-contract with iSoft to provide clinical systems, Burnham said: "Action was taken to exercise this provision in relation to iSoft on a contingency basis, and a joint team of appropriately-experienced NHS and private sector programme managers and software engineers identified for the purpose."

Burnham declined to give details of the size of the team or the costs involved but said that " some limited expenditure has been incurred in monitoring the circumstances surrounding the recent uncertainty over the future of iSoft".

In mid-June Connecting for Health boss Richard Granger first that CfH had a team in India ready to step in if required: " We have a third party presence in Chennai on a step in basis forcing CSC to step up to the bat for the NHS.”

Granger had also warned that if a deal was not reached between CSC and iSoft he would he was prepared to ditch iSoft’s Lorenzo software, and make arch rival Cerner’s Millennium the national system across England, if the late-running software doesn’t work or meet NHS requirements.

Concerns about iSoft’s financial stability in relation to the NHS IT programme crystallised in June when CSC initially exercised its contractual right of veto over a proposed change in ownership of iSoft, its main sub-contractor in the Connecting for Health programme.

At that point iSoft was seeking approval of a deal that would see it bought by Australia’s IBA Health. After iSoft threatened to sue CSC, its main customer, if it did not approve the IBA health takeover.

After recommending the IBA offer to shareholders, who voted in favour of the deal, the iSoft board subsequently on 20 July switched to backing a late higher £160m bid from Germany’s CompuGroup.

If the deal is completed CompuGroup plans to sell off the iSoft iPM, iCM and Lorenzo assets relating to the NHS National Programme for IT to CSC for an estimated £30m

Links

CompuGroup outbids IBA for iSoft

Granger says IBA will take control of iSoft within week