ISOFT


iSOFT is an international supplier of software applications for the healthcare sector. Its products are used by an estimated 13,000 organisations in 40 countries for managing patient information and healthcare services. Its headquarters was in Sydney, Australia prior to its acquisition by DXC Technology in 2011.
iSOFT was founded in 1996 as a business group within accounting group, KPMG and bought out of the Group in 1999. In 2000, iSOFT had a successful listing on the London Stock Exchange.
iSOFT became part of the IBA Health Group following a merger completed in October 2007. The IBA Health Group has since changed its name to iSOFT Group to build on the goodwill associated with one of the world's leading health IT brands, iSOFT. iSOFT announced on 24 March 2011 that trading in its shares would be suspended pending a corporate announcement. Subsequently, on 4 April, the company announced that it was recommending a cash offer from Computer Sciences Corporation for $188 million. Subsequently, in April 2017 a merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise created a new entity, DXC Technology.

Accountancy irregularities

In the summer of 2004 the Guardian newspaper saw a confidential report suggesting questionable accounting practices in iSOFT tracing back to 2002. iSOFT sought and obtained an injunction against the paper preventing publication of the story, and a Parliamentary Written Question was answered by the government saying that they had no plans to look into the matter.
The leaked confidential report had been commissioned prior to a merger between itself and its rival Torex and had raised sufficient concerns within Torex that it was only rescued by the personal assurance of Sir Digby Jones, then Director-General of the CBI and non-executive director of iSOFT.
Following profits warnings in January 2006 and June 2006 due to changes in its accounting policy, the resignation of its chief executive, the announcement of losses of £344m for the year to April 2006, extensive delays to its already overdue LORENZO product and the pulling out of one of its two main customers, Accenture, from the NHS government contract in September, and the opening of an investigation by the Financial Services Authority, the gagging order against the newspaper was lifted in October.
The Chairman John Weston and board of directors appointed Alvarez and Marsal to advise the company and provide interim management and leadership alongside the newly appointed COO, Bill Henry in July 2006.
In January 2010, the FSA confirmed that they had begun legal proceedings against the four directors who were involved in the irregularities. In March, the AADB excluded Ian Storey, former financial controller, from membership of his professional body ICAEW. They were acquitted at Southwark Crown Court on July 22 after a seven-year investigation and two trials brought by the Financial Conduct Authority, which said it would not pursue a third prosecution as the “case was now stale”. In 2013 the FCA has closed the case because of "procedural problems", clearing Patrick Cryne, Stephen Graham, Timothy Whiston and John Whelan of wrongdoing.

Sale of company

iSOFT's flagship product Lorenzo patient record systems was dogged by a number of issues mainly centred on delays to delivery schedules and questions over its suitability for the purpose it was intended. As a result of continuous delays and quality issues, Singhealth, one of iSOFT's three early adopters abandoned plans to wait for delivery of LORENZO and opted to return to i.Clinical Manager's heritage product and deployed Sunrise Clinical Manager from Eclipsys instead.
In November 2009, the government admitted that despite the challenges a handful of sites had gone live with Lorenzo, although there were only 174 regular users. A week later, Gary Cohen claimed that LORENZO would be live at 25 trusts in 2010, despite the history of problems.
Less than three months later, NHS trusts trying to install Lorenzo reported delays or deferred the installation of Lorenzo.

iSOFT history