FSA to probe NHS contractor

A second-tier contractor currently embroiled in efforts to drag National Health Service IT into the 21st century is to be investigated by the Financial Services Authority (FSA) for possible accounting irregularities. 

Healthcare software specialist iSoft alerted the FSA after its own investigations found evidence of irregularities affecting fiscal 2004 and 2005.

The company has suffered from delays in implementing NHS systems, senior resignations and accounting issues that have led to profit warnings and put back the release of its financial statement.

Chief executive Tim Whiston resigned on 30 April with chairman John Weston assuming his responsibilities. Bill Henry, ex-head of MessageLabs' Star Services division, was recruited as chief operating officer on 28 June.

The NHS was criticised in a report released by the National Audit Office earlier this year for taking too long to implement its IT systems. 

"There is support among NHS staff for what the programme is seeking to achieve, but significant concerns among some staff that the programme is moving slower than expected, and that clarity is lacking as to when systems will be delivered and what they will do," the report said at the time.