More bad news for iSoft

ISoft, the crisis-hit software supplier to the National Health Service, today revealed it is in talks with a number of potential buyers which could lead to the sale of the company.
It also warned that full year revenues are likely to be up to 15% lower.

In a statement issued ahead of what is expected to be a stormy annual meeting this afternoon, iSoft chairman John Weston said the board has received "expressions of interest from a number of parties interested in acquiring iSoft, taking a large shareholding in iSoft or creating a significant strategic alliance with the company".

The approaches have come both from financial investors and companies with "strategic interests" in the healthcare market, he said.
"The board has concluded that shareholders' interests are best served by opening discussions with a number of these parties with the objective of clarifying the options and determining the most appropriate route forward for the company and its shareholders. These discussions may or may not lead to an offer for the company."

Shares in iSoft have collapsed amid a deepening crisis with the £6.2bn IT upgrade to the NHS.

It is also on a collision course with investors over its pay policies, with two major shareholder bodies expected to mount a protest at the annual meeting this afternoon over a shares bonus granted to finance director Gavin James.

Mr Weston said the company has been taking "far-reaching action" to reduce its cost base and to enhance long-term profitability.

"This action is progressing well and will have some modest beneficial impact on the second half of the year. We look forward to reporting on progress when we announce our interim results."

Although new financing arrangements were put in place with its banks in late August, Mr Weston said the cost of these facilities will become "progressively more onerous" through 2007.

The new business plan should see the group return to revenue growth in 2008 but the chairman said: "Notwithstanding the positive impacts of implementing the new business plan, the company needs to secure long-term capital for the business.

"There are a range of options that would enable the company to finance its activities on a long-term basis and these are being reviewed."

http://business.guardian.co.uk/story/0,,1924229,00.html

 

Even more bad news for iSoft

<font size="5" face="arial,helvetica,sans-serif">ISoft's latest glitch is 'pretty scary' for hospital</font>

<font size="3" face="arial,helvetica,sans-serif">· Software group has another dissatisfied customer
· North Staffordshire trust fears shortfall of up to £16m</font>

<font size="2" face="Geneva,Arial,sans-serif"> Simon Bowers
Monday October 16, 2006
The Guardian

</font> <div id="GuardianArticleBody">Seriousproblems with one of iSoft's most complex hospital computer systeminstallations are threatening to wipe more than £16m off the expectedincome for University Hospital of North Staffordshire.

It is thelatest blow in a series of troubled episodes surrounding recentlyinstalled iSoft software and could be the source of some embarrassmentwhen the financially stretched company holds its annual shareholdermeeting in Manchester tomorrow.</p>

North Staffordshire, which isstruggling to claw back debts from last year of £15m and is shedding1,000 staff, is having problems getting its new IT system to generatebasic information on patient treatments in order to send bills out tothe primary care trusts. It said the problem could leave the trustshort by £4.5m to £16.2m by April. &quot;The sums look pretty scary,&quot; saidits finance director, Mark Mansfield.</p>

<script language="javascript" type="text/javascript"> &lt;!-- /* set the domain in anticipation of the ad*/ if(setDomainForAds) { setDomainForAds(); }; //--&gt; </script> </p><div class="MPU_display_class" id="spacedesc_mpu_div"><a name="article_continue"></a> </div>ISoft software packages iCM and iPM were finally installed at the startof July - more than two years behind schedule. The systems have beendescribed by trust executives as &quot;the new heartbeat of the hospital&quot;.But they have been plagued with problems. At one stage the new systemsthreatened the trust's ability to report waiting list data. Within sixweeks of systems going live IT managers were blaming &quot;significantdifficulties&quot; at least in part on &quot;problems with the software, whichare slowly being fixed&quot;.

Atthe end of last week hospital staff received an email from the ITdepartment saying: &quot;Due to technical difficulties, trustdepartments/wards will be unable to view results via iCM until furthernotice. We are working closely ... to resolve this issue as a matter ofpriority.&quot;</p>

ISoft's North Staffordshire installations do not formpart of the NHS's £6.2bn National Programme for IT (NPfIT), the largestnon-military project of its kind in the world. However, after lengthydelays in the development of iSoft's next-generation Lorenzo software -the cornerstone of the NPfIT, earmarked for 60% of NHS trusts inEngland - the old iCM and iPM are being rolled out as stopgap measures.IPM has been used widely for about 10 years, mainly in primary caretrusts. But its track record in acute hospitals has been mixed.</p>

Thissummer Sheffield Teaching Hospitals, a foundation trust, pulled out ofNPfIT, forgoing central government funding for an iSoft system thatincluded iPM.</p>

Sheffield's decision followed visits to two otheracute hospital trusts using iPM: Scarborough and University HospitalBirmingham. A review of the visits, presented to the trust board,concluded that &quot;the iSoft iPM patient administration system product ascurrently presented is 'not fit for purpose' and can't be deployedwithout implications for operational services and clinical/financialrisk&quot;.</p>

Scarborough and University Hospital Birmingham haveremained supportive of iPM, iSoft and the NPfIT. Sheffield has said itsdecision to opt out of the NPfIT was nothing to do with visits to thesesites.</p>

At Plymouth - one of the first trusts to install iPM andiCM and the blueprint for the NPfIT rollout - iSoft systems arebelieved to be in use on only two wards years after they were installedat the trust.</p>

Mike Brereton, trust chairman at NorthStaffordshire, told the Guardian good progress had been made in fixingthe trust's billing crisis. Some £450,000 of July income the trust hadpreviously described as unrecoverable had since been recovered in full.&quot;We are continuing to work with iSoft on issues surrounding billing forthe remaining three quarters of the year,&quot; he said. &quot;Significantprogress has been made.&quot;</p>

Asked if the trust was satisfied with iSoft as its IT supplier, Mr Brereton said: &quot;It is too early to say.&quot;</p></div>

 

Its been on 5 live this morning

And a certain Mr Cryne was mentioned for toddling off with a massive payout just weeks before the company lost 90% of it value.</p>

Good lad PC. Get it given to me or the club before they take it off of you.</p>

 

RE: Even more bad news for iSoft

Is PC still involved in any way and if so could this affect us adversely?

 

Watch out for BT or CSC buying it.....