NHS IT savings predicted to hit £1.14bn

The £12.4bn national NHS IT project will save the health service £1.14bn by 2014, a government report claims.

The first annual Benefits Statement published by the government estimates the National Programme for IT in the NHS has already saved £208m by March 2007.

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Of that amount, £192m was saved through the national Network for the NHS, a secure, dedicated network that carries many of the applications developed for the programme. It is expected further savings of £95m a year will be made by the network.

Another £14m was saved through the use of digital imaging and scans. This will rise to £35m now the system is in place.

And £617,000 was saved in software licensing and hardware maintenance costs, rising to £1.6m every subsequent year.

In a statement, health minister Ben Bradshaw said: "Our use of computer technology in the NHS is becoming the envy of the world. It is saving lives, saving time and saving money."

The project has not proceeded entirely without a hiccup though. In September of last year, MPs criticised the project for delays in rolling out an electronic patient records system.

It also lost its leader, Richard Granger, late last year. His post still remains vacant.

Up to last March, the NHS has spent £2.4b on the project, £390.8m of which has been paid to suppliers. By 2012, the project will cost £12.4bn in total.