NAO targets waste in Health Exec IT spend

The National Audit Office is to investigate alleged overspends on computer systems overseen by the National Health Executive, the top policy making body in the NHS.

The Executive, which has been responsible for spending on computer projects worth # 2bn over the last 10 years, has been accused of wasting up to # 500m on grandiose computer projects that have brought little benefit to the NHS.

Auditors from the NAO will conduct a preliminary study over the next few months to gauge the extent of the alleged waste within the Executive.

The study will focus on the activities of the Information Management Group (IMG), a division of the Executive formed in 1992 and entrusted with implementing NHS IT policy. A full value-for-money investigation for presentation to Parliament is likely to follow later in the year, according to sources within the NAO.

The NAO has already criticised the IMG over the introduction of Hospital Information Support Systems, which cost # 106m and yet saved only # 3.3m, and of its conduct during the Wessex Health Authority scandal when # 63m was squandered on unused computer systems.

Labour health spokesman Kevin Barron said he was appalled at the lack of clear administration and procurement procedures for purchasing IT in the NHS.

‘The IMG has wasted millions of pounds that could have been spent on better patient care. It may well have overseen serious rule-breaking in tender and contract matters. Ministers have known about these problems for years and have done nothing. The secretary of state must take action now to clean up the mess. Adding that he wanted a simplified system of administration and a less cumbersome procurement process.

The NHS Executive acknowledged that it had experienced problems over the last 10 years, but argued the formation of the IMG had enhanced the development of an electronic infrastructure for the NHS.