NHS data shows Palantir tool cuts discharge delays, sparking contract review
New NHS England analysis finds the Palantir‑run Optica system slashes long‑stay discharge delays, contradicting earlier claims of no benefit.
Internal data from NHS England indicates that the Palantir‑run Optica AI tool cut discharge delays for long‑stay patients by as much as 28 per cent, directly contradicting a recent Health Foundation report that said the system had made “no noticeable improvement”.
Data that challenges the criticism
The unpublished NHS analysis compared trusts that had adopted Optica with those that had not. For patients staying more than seven, 14 or 21 days, trusts using the tool saw a 14.1 to 14.9 per cent fall in delay days, while non‑user trusts recorded a 2.9 to 3.5 per cent rise. When looking at the cohort managed entirely through Optica, the reduction reached 28 per cent.
Cost and contractual stakes
The findings arrive as the government prepares to review the £330m contract awarded to Palantir in 2023, ahead of a break clause in February 2027. The wider Federated Data Platform programme is now projected to cost £1.1bn over its lifetime, with expected financial benefits trimmed to £808m. Despite the higher cost, the National Infrastructure and Service Transformation Authority (NISTA) continues to rate the programme green, placing it among a small fraction of major government projects deemed on track.
"Optica is focused on supporting the more efficient discharge of long stay patients with complex needs. And that is where it is delivering results," said a Palantir spokesperson.
Looking ahead to the 2027 review
The Department of Health and Social Care confirmed the contract will be examined before the break clause, but did not hint at a decision. Critics such as Dr David Nicholl of the Doctors’ Association UK remain sceptical, arguing the platform offers little beyond existing software. Meanwhile, data expert Tom Bartlett warned that both the Health Foundation and NHS analyses have methodological flaws, and that a ward‑level study would be needed to isolate the tool’s impact.
Should the review conclude the benefits are not attributable to Optica, the NHS could face a costly transition to alternative systems. Conversely, a positive assessment may cement Palantir’s role in future NHS digital projects. Ministers are expected to weigh the competing evidence in the coming months as the 2027 deadline approaches.
