U.S. firm may write down investment made in UK's health IT program

NEWS IN BRIEF — Posted Jan. 16, 2012

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The Falls Church, Va.-based technology and consulting firm CSC said in December 2011 that it may have to write down as much as $1.5 billion it invested in the development of the United Kingdom's national electronic medical record system after the UK announced plans to scrap it.

CSC was contracted to develop the national health information system, which began in 2002. After years of delays and setbacks, the UK said in September 2011 that it was scrapping the program in favor of a localized approach to health information exchange, but that certain components of the national program would remain.

CSC has been negotiating with Britain's National Health Service over contract amendments since November. The company said at the end of 2011 that the government would not be approving a new or amended contract.

The two sides are expected to resume negotiations. But CSC said if an agreement is not reached, it would have to write down what has been invested so far, which is about $1.5 billion.

Note: This item originally appeared at

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