UK reviewing Palantir’s NHS contract amid pressure to use break clause

A binary code and Palantir logo are seen in this multiple exposure illustration photo taken in Krakow, Poland on February 21, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

LONDON, June 9 (Reuters) - Britain is conducting a full review of its National Health Service contract with U.S. data analytics firm Palantir, amid growing political pressure for the government to use a break clause at the end of the initial term in early 2027.

Technology minister Liz Kendall said on Tuesday the review would assess whether to extend the £330 million (US$441 million) deal under provisions allowing the government to continue it for up to seven years or terminate it.

“The current health secretary is reviewing every single aspect of that (contract) to make sure we get the right deal for Britain,” Kendall told Times Radio, referring to concerns about patient confidentiality, public trust and reliance on a U.S. supplier.

The contract, awarded in 2023 to build a platform linking NHS data, runs until early 2027, when the government must decide whether to extend it.

Parliamentary criticsm

A parliamentary committee last week urged ministers to trigger the clause and end the contract, warning Palantir’s role represents an “unacceptable point of weakness” and highlighting risks from relying on a small number of U.S. tech firms.

The committee said the company’s growing role in the public sector raised concerns about dependence on overseas suppliers and the resilience of critical services, while noting officials reported benefits in areas such as waiting list management, operations and hospital discharge planning.

The deal has also drawn scrutiny because Palantir supplies software to the U.S. military and immigration authorities, and over the political views of its billionaire co-founder Peter Thiel, an early supporter of President Donald Trump.

Campaigners and unions have raised concerns about the handling of sensitive health data. Last month, the Financial Times reported NHS officials had proposed granting some external staff, including Palantir personnel, broad administrative access to identifiable patient data on parts of the system.

Palantir has said its software helps improve patient care and efficiency across the NHS.

Neither Palantir nor NHS England immediately responded to requests for comment.

Separately, London Mayor Sadiq Khan last month blocked a £50 million police contract with Palantir, citing concerns about value for money and whether companies’ ethics should be considered in public procurement.

(Reporting by Sam Tabahriti. Editing by Mark Potter)