Telecoms operator Fujitsu, which has a large operation in Birmingham, has been left reeling after the NHS opted to cancel a major contract with the firm in a move which could end up costing it £300 million.
The decision is another blow to the company, which announced in April that it was shedding 150 jobs from its operation in the region.
The move saw Fujitsu’s £896 million, ten-year contract for installing the Government’s multi-billion pound scheme to computerise patient records in the south of England terminated after months of negotiations broke down.
The £12.7 billion project has come in for repeated criticism over delays, bad management, computer glitches and fears over the security of patient information.
The agreement was originally signed in January 2004 and had been set to run to 2013, but a spokeswoman for the National Health Service’s Connecting for Health agency said a termination notice had been issued which could cost the Japanese-owned services company an estimated £300 million.
“Regrettably and despite best efforts by all parties, it has not been possible to reach an agreement on the core Fujitsu contract that is acceptable to all parties,” she said.