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Matthew Vella
The company bidding for the Mater Dei hospital’s IT tender risks being cut off from two contracts in the massive billion-pound project to modernise the British national health service’s IT system.
British healthcare firm iSoft could risk losing GBP200 million in revenue after the chief executive of Accenture said the company was now examining alternatives to the firm for two contracts in the eastern and north east regions of the NHS.
iSoft is one of two finalists for the provision of Mater Dei’s integrated health information system, estimated to range between Lm10 million and Lm15 million, which has to be delivered by December 2006.
But the firm is facing an uncertain future after several profit warnings and a restatement of its accounts chopped off 80 per cent of its market value over the past six months.
It is also 30 months behind schedule and possibly GBP14 billion over budget to provide software for the NHS that will give patients a lifetime electronic care record.
iSoft’s profits disappeared into a financial hole following profit warnings announcing the delivery of the NHS programme would take place later than expected, meaning total revenue generated by the programme for the year was expected GBP55 million below previous expectations.
But it was a change in accounting policy on 8 June 2006 that sent iSoft’s profits down to between GBP3-GBP7 million, compared with a previous forecast of GBP17-22 million, after eliminating GBP165 million of historic revenue.
The downwards revision of its revenues also meant the company had breached its banking covenants, because its debt with banks had exceeded its earnings three times over.
An iSoft spokesperson had told MaltaToday that Malta was “an existing customer of iSoft” and said the firm was “confident” it could meet delivery commitments it submitted in its proposal.
The Department of Contracts is monitoring media reports over the fate of iSoft. In June, director for compliance Anthony Fava said the final selection process between tenderers iSoft and AME will still go on.
“At this stage, the candidature of iSoft is still valid. We will establish later on whether anything has changed vis-à-vis the original offer. It will be the General Contracts Committee to effectively decide whether, in the case that iSoft is recommended to supply the software, the company is suitable to carry out its contractual obligations,” Fava said.
The other finalist for the Mater Dei IT tender is AME, a consortium which includes Italian firm INSO, the providers of medical equipment for Mater Dei.
mvella@mediatoday.com.mt
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