Select Committee on Public Accounts Minutes of Evidence


Examination of witnesses (Questions 120 - 139)

MONDAY 15 JUNE 1998

MR ROBIN MOUNTFIELD, CB, MR MARK GLADWYN, SIR ALAN LANGLANDS and MR FRANK BURNS

  120.  It was meant to be a national integrated system when 100 million was spent. That is another piece of good news for us.
  (Sir Alan Langlands)  Chairman, if it would help, I do have my expert with me. He might want to talk about that.
  (Mr Burns)  You mentioned two systems, you mentioned the RISP system which was a regional system which was actually abandoned at the time.

  121.  It was abandoned, they were using a residual basis, using some of the systems within.
  (Mr Burns)  The regionally integrated system was abandoned. There are some regionally integrated patient administration systems that are provided by a variety of suppliers.

  122.  Forget that and go on to the national one.
  (Mr Burns)  All of these patient administration systems are being actively investigated in conjunction with suppliers and we expect all of them to be resolved in terms of year 2000 compliance problems by the dates that we have set.

  123.  That is good news but at what cost?
  (Mr Burns)  In many cases the costs will be covered as part of the contract with the suppliers. I have not got individual costs in terms of the costs falling on specific hospitals. They are part of the general costs.

  124.  Is it possible going back to your office you might be able—I do not mean this in any unpleasant sense—to do us a note in relation to that?
  (Mr Burns)  Yes[3]. If you are alluding specifically to the hospital information systems that were the subject of the previous PAC report we could let you have a note of what specific costs for year 2000 compliance arise.

  125.  All we want is the information.
  (Sir Alan Langlands)  Yes.

  126.  Sir Alan, I know you cannot say this because as a civil servant you dare not but it must be a matter of some concern that all these costs are having to be absorbed within existing budgets when some people are not living within their existing budget.
  (Sir Alan Langlands)  Well, I think when the Committee sees the accounts for the Health Service, which are not published yet, for the last financial year, you will see a very significant improvement in issues of budgetary control and the scale of the deficit has reduced very substantially indeed.

  127.  You are not suggesting that there are going to be trusts who will not be in deficit?
  (Sir Alan Langlands)  No, I am not suggesting that at all.

  128.  So what happens to them and what happens to the people who are dependent on them?
  (Sir Alan Langlands)  Well, where people are in deficit, in terms of the Committee's and the NAO's definition of "deficit", there will be a recurring deficit. They will be in a deficit position, if you like, in relation to their year-on-year budgets.

  129.  Are you trying to say that they will be in bigger deficit?
  (Sir Alan Langlands)  No, I am not saying that at all. I was going on to say that where these trusts are in deficit, there is either in place an action plan to reduce that deficit or there is a special dispensation approved by ministers to carry that deficit forward and there are often very good reasons why a deficit will arise.

  130.  All we want to know, and this is what we are concerned about, is that every trust, regardless of whether it is in deficit or not, is going to be able to conform to the requirements for the millennium change without the possible extra loss of service to its patients.
  (Sir Alan Langlands)  The money will be allocated on a non-recurring basis to deal with the millennium issue. The lion's share of the expenditure, £210 million of the £320 million, will be spent this year. I think that sum is insulated from the routine of Health Service spending and I do not think that the expenditure of that sum will lead to any downgrading of patient care.

  131.  What about the activities of the Medical Devices Agency? They seemed to wake up to this problem very, very late, did they not? In fact they were issuing quite sanguine reports when you later came along and issued warnings that if there was not compliance, there could be trouble, putting patients' health at risk and lives at risk.
  (Sir Alan Langlands)  They did produce early reports in 1996. I think you are right to suggest that it has taken some time for the whole question of embedded chips of electro-medical equipment to perhaps be given the same emphasis that has been given to IT systems, which, as we have said earlier, have been running since 1995/96, but I am sure, absolutely sure now that the Medical Devices Agency and the NHS Executive are working hand in glove on this issue and that the Medical Devices Agency are providing proper support to the NHS.

  132.  So coming back to the point the Chairman raised right at the outset of the 10 per cent of trusts who are not confident of fixing their systems and the 15 per cent who are not confident of fixing their medical equipment, how have you singled these out for administrative supervision over this period? Have you done anything special in relation to those to try to bring them up into phase with everyone else?
  (Sir Alan Langlands)  I think as a generality that the position has improved from the NAO study period which was September/October 1997 and the position that we monitored and recorded for every trust——

  133.  What would you make it now? What would the 10 per cent and the 15 per cent be now then?
  (Sir Alan Langlands)  In terms of?

  134.  Well, it was 10 per cent of trusts who are not confident of fixing their systems, so what per cent would you say now?
  (Sir Alan Langlands)  I think all trusts have now accepted that they have to meet the——

  135.  No, no, that is not the question. The question is about the fact that they are not confident, but you said that they understand that they have to, but that does not mean they are confident of meeting it, does it?
  (Sir Alan Langlands)  I am assured———

  136.  You can tell the England team that it has to go out and win, but there is someone else on the field as well. It is not entirely within their control, is it? Just for you to say that they have been told is not good enough and it does not mean it gets done.
  (Sir Alan Langlands)  All the returns we have, the March 1998 returns, and we will see the June returns just in a few weeks' time, suggest that the two deadlines that I outlined at the beginning to the Chairman will be met across the NHS.

  137.  That is so but you are saying that ten per cent who were not confident of fixing their systems are now confident?
  (Sir Alan Langlands)  That I believe to be true. I think everyone will meet the targets that have been set.

  138.  So that is confidence there. And the 15 per cent who were not confident of fixing their medical equipment, you think they are now confident?
  (Sir Alan Langlands)  I do not think they are necessarily always confident of fixing their medical equipment and that is one of the reasons that £150 million has been set aside by the NHS as a contingency sum.

  139.  Why is the equipment giving so much trouble when the specialist organisation, the Medical Devices Agency, had indicated there was not a great problem?
  (Sir Alan Langlands)  First and foremost we do not know if it is giving trouble. There are problems in some places that seem to have been adequately resolved in the relationship between the NHS and the Medical Devices Agency that I described. There are some pieces of equipment that are so critical and cannot be tested in the time frame that they might have to be replaced or have parts renewed. That is why the £150 million has been set aside as a contingency sum.


3   Note: See Evidence, Appendix 2, page 19 (PAC 344). Back


 
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