Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 140 - 159)

MONDAY 23 MARCH 1998

MR ALAN LANGLANDS, MR FRANK BURNS, DR JAMES READ AND MR DAVID BIRD.

  140.  I am going to ask Mr Frank Burns, have you carried out a proper cost benefit analysis of this system and, if so, do you think it will be in operation by the year 2000 properly and how much extra money will need to be spent per annum between now and the year 2000?

   (Mr Burns)  I think as the Chief Executive has said we have agreed, as suggested by the NAO Report, that we will do this independent evaluation of the Code.

  141.  When?

   (Mr Burns)  Again as the Chief Executive has reported to the Committee we are drawing up terms of reference for doing that.

  142.  When will it be completed?

   (Mr Burns)  We expect it will be completed by the end of this calender year.

  143.  Yes.

   (Mr Burns)  In so far as the next two years is concerned I can only reiterate the Chief Executive's view that we have to have a commitment in the National Health Service to modernise our information systems. This is not only Government policy but it is an absolute inevitability in a service as important and as complex as the NHS. Therefore, we must make a commitment over the next two to five years to modernise our information technology systems. We have to deliver the objective in the recent White Paper to establish electronic communications between all hospitals and all general practitioners. We know as an absolute fact that we cannot deliver electronic communications between hospitals and general practice without an agreed standard clinical vocabulary.

  144.  You are the Head of Information and Management Technology.

   (Mr Burns)  I am, yes.

  145.  When will that system be in operation in your view?

   (Mr Burns)  Well, if we take as a given that the NHS must modernise its information systems; if we take as a given that we must invest in the clinical systems that will support the capture and use of clinical information in hospitals and in general practice; if we take as a given that we must use the technology that will allow communication electronically between hospitals and general practitioners; if we take as a given that we would want to do that over the next five years then we have to take as a given that the NHS must be using a standard clinical vocabulary such as has been produced by this project in order to support all of that.

  146.  Is that standard vocabulary currently agreed? The Chief Executive said we have got wide agreement cross clinicians, so has that standard vocabulary now been agreed?

   (Mr Burns)  Yes. In so far as Version 3 is concerned the project was to produce fit for purpose terms.

  147.  If it is agreed why is it going to take another five years for you to implement it? It has already been on the blocks since 1991.

   (Mr Burns)  The project for Version 3 to produce the terms was concluded in 1994. The vocabulary, such as is necessary to support work in hospitals, has only been available since 1994. It is a very complex and important piece of clinical development. We need to be certain that the vocabulary is fit for purpose because it will be used to support clinical communication and we need to be absolutely certain that clinical communication is precise, especially when we move that communication on to computers. This is why it has been so necessary to do the extensive bench testing that has been done and this is why it is necessary to properly pilot the use of this vocabulary in a live situation.

  148.  I am getting the red card from the Chairman but the answer is if it was already in operation in 1994 it amazes me that not more clinicians are using it in hospitals. Can I ask you one final question. How much money have you allocated in your budget line to this project over the projected life for the next five years?

   (Mr Burns)  The amount of money we would need to spend both to develop these Codes and to put them into operational use in the NHS is linked directly to the amount of investment that it will be possible to make in the development of clinical information systems in the NHS. That is a matter that is currently before ministers in their consideration of my information strategy.

  149.  How much money have you provisionally allocated in your budget line over the next five years for this project?

   (Mr Langlands)  Can I help, Chairman. It may sound as if we are being evasive on this.

  150.  You are.

   (Mr Langlands)  No, let me finish. The answer is we cannot commit money over the next five years. The Government is currently undertaking a Comprehensive Spending Review and as part of that Comprehensive Spending Review it will determine both the capital and revenue resources that are to be available to the health service between 1999-2002. We do not know the outcome of that discussion and we will not know the outcome of that discussion for some time. One of the things that has been looked at in the Comprehensive Spending Review is the need to improve and update the way we handle information in the health service in line with the Government policies. We cannot sit here today and make five year projections which we have no basis for.

  151.  Chairman, can I crave your indulgence. We are not getting clear answers to clear questions here. You have a budget line for this year and next year at the very least. Can you give us those figures[21]? You must have a provisional budget line for the following three years after that. 16

   (Mr Langlands)  We can certainly do two things. One is provide a note for the figures for this year and next year to ensure that they are entirely accurate. We will do that immediately. The second thing I think we can do is set out for the Committee some of the issues that are currently being considered in the Comprehensive Spending Review[22]. It is not our place to have provisional plans for n years ahead, it is our place to advise ministers who will determine public spending in the NHS against their other priorities. We will do both of these things if it will be helpful to the Committee.

  Mr Williams:  We look forward to receiving it.

Mr Page

  152.  Mr Langlands, I think everybody accepts there is a desperate need to have a clinical IT system running throughout the NHS, but here we are just considering Read Codes. How many other systems were looked at before the Read Code was decided to be adopted?

   (Mr Langlands)  In 1988 eight different systems were looked at. These were all systems, as indeed the Read Codes were, that were in pretty minimal use as far back as 1988. Only ten per cent of general practices, for example, were using the very early versions of the Read Code. That figure is now 80 per cent. Only a handful of hospitals were engaged in this discussion and there are now 150.

  153.  So you examined eight and you chose the Read one as the best one?

   (Mr Langlands)  The NHS Executive at the time-this started in general practice-advised by the Joint Computing Committee of the GMSC, that is the GPs' committee on the BMA, and the Royal College of General Practitioners, chose from eight and they chose this one as being the most suitable for development.

  154.  So the answer to the question is eight?

   (Mr Langlands)  The answer to the question is eight, yes.

  155.  If I can take you to page 21, paragraph 1.31, according to this the Executive-and sometimes I will say you when I mean the Executive but I realise that you were not necessarily there at the various times and I apologise if I get them muddled-in the proposals were not fully evaluating the likely costs and benefits of the Code. Are you saying the Executive went ahead with this project without doing a cost benefit analysis?

   (Mr Langlands)  That is correct.

  156.  I think I will leave that there. I do not think I can take it any further.

   (Mr Langlands)  What they did do was review the very thorough report from the Joint Computing Group which did identify in some detail the benefits and did analyse with some rigour the eight options that you identified in your first question.

  157.  However, there was not a full cost benefit analysis taken, you would agree?

   (Mr Langlands)  There was not a full cost benefit analysis undertaken by the NHS Executive. They accepted the recommendations of the Joint Computing Group.

  158.  Dr Read appears to have run the Centre as his own bailiwick. Could I ask what advice in setting up the Centre was given to him by the Executive on how he should run the Centre?

   (Mr Langlands)  I have no real knowledge of that. As far as I can determine that advice would have been given by his line manager at that time and I think it is absolutely clear from the Report that there was confusion about accountability, confusion about where the locus was on key employment issues.

  159.  Mr Langlands, with respect to what you are saying, there was not confusion at all. Dr Read ran this as his own bailiwick. I suggest that he is not experienced in the requirements of public service and the stringent rules and regulations that govern our lives. So do you not think the Executive would have been playing fair with Dr Read if they had actually given him some advice and not said, "Off you go, run this centre"?

   (Mr Langlands)  I think the Executive was remiss in not being absolutely clear about the lines of accountability, about his responsibilities and the sort of standards that were required in relation to personnel issues and financial and probity issues.


21   Note: See Evidence, Appendix 1, pages 24-25 (PAC 264). Back

22   Note by Witness: These are percentages of general practices which are computerised. Back


 
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