§ Mr. Jim CunninghamTo ask the Secretary of State for Health if she will make a statement concerning the establishment by 'West Midlands regional health authority of the Health Management Trust Ltd., with particular reference to the transfer to the trust of Crown copyright software and the licence fee paid for this.
§ Dr. MawhinneyThe financial information project—FIP—was set up in 1979 and was jointly funded initially by the Department and West Midlands regional health authority and later by an association of regions. The association was subsequently disbanded. In order to ensure the further development of the software, a charitable trust called the health management trust was set up and a licence was granted to it by the Department to use, develop and distribute the software for the benefit of the national health service. As the trust is a non-profit-making charity and the software is made available to NHS users at beneficial rates, there was no licence fee.
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§ Mr. Jim CunninghamTo ask the Secretary of State for Health (1) what amount was granted by the West Midlands health authority to Health Management Trust Ltd.; what were the reasons for this; how much of this amount the company has repaid; and what representations her Department has made to West Midlands health authority on this matter;
(2) what amount was lent by the West Midlands health authority to Health Management Trust Ltd.; what were the reasons for this; what were the repayment terms of the loan; and what representations her Department have made to the West Midlands regional health authority on this matter.
§ Dr. MawhinneyThe amount granted by West Midlands regional health authority to Health Management Trust Ltd. is £101,700: in addition loans amounting to £930,000 have been made by West Midlands regional health authority to Health Management Trust Ltd. The grant was not repayable and was made as part of a total package of financial assistance to enable the trust, on behalf of the regional health authority, to research and develop computer-based systems to improve organisation and management within the NHS. The loan was made to enable the trust to continue development of the financial information project—FIP—software products, consisting of software systems on ward nursing, paramedic and theatre systems and community nursing and is repayable, with interest, by quarterly instalments beginning on 28 February 1994. The Department has been in contact with West Midlands regional health authority about this matter on a number of occasions.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health by what authority the West Midlands regional health authority was able to establish the Health Management Trust Ltd. as a separate company with charitable status; and if she will make a statement.
§ Dr. MawhinneyHealth Management Trust Ltd. was established by a number of individuals, some of whom were national health service employees, acting in a personal capacity, with assistance from the West Midlands regional health authority.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health what has been the change in the level of charges levied by Health Management Trust Ltd. on the users of software, including other health authorities, for which it has the Crown copyright.
§ Dr. MawhinneyThe level of charges is a matter for Health Management Trust Ltd. to determine.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health what representations she has received from other national health service bodies about the conduct of Health Management Trust Ltd. in pursuing legal action against the users of the software for which it has the Crown copyright.
§ Dr. MawhinneyThe Department is not aware that Health Management Trust Ltd. has taken legal action against any national health service users.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health what settlements have recently been concluded between(a) the South Western regional health authority and (b) North West Thames regional authority and Health Management Trust Ltd.
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§ Dr. MawhinneyIn 1992, the Department mediated successfully in a dispute between South Western regional health authority and Health Management Trust Ltd. In 1993, the Department was similarly successful in mediating between North West Thames regional health authority and the Health Management Trust. The terms of the respective settlements are confidential between the parties concerned.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health what representations she has made to West Midlands health authority or Health Management Trust Ltd. about these settlements.
§ Dr. MawhinneyNone, as settlement was reached by all the parties concerned.
§ Mr. Jim CunninghamTo ask the Secretary of State for Health (1) what is the relationship between the West Midlands health authority and Health Management Trust Ltd. and FIP Ltd.;
(2) what is the status of Health Management Trust Ltd. and HP Ltd. within the NHS.
§ Dr. MawhinneyFinancial information project—FIP—was set up in the mid 1980s as a consortium of district health authorities to develop and use a series of financial information systems. In July 1989 the West Midlands regional health authority agreed a proposal to transfer the activities of HP to an independent trust—Health Management Trust—which was registered as a charity. Focus Information Systems, the new name for the company previously known as FIP, is a wholly owned subsidiary of Health Management Trust Ltd.