NHS trusts turn down Palantir patient data platform as contract decision looms

Health trusts cite equivalent alternatives, raising questions over £330m deal

By LineZotpaper

Published17 October 2026

Read Time2 min

More than a dozen NHS trusts in England have declined to use Palantir's federated data platform, with FOI responses showing 16 trusts and health boards do not use it. Some trusts said existing systems offer comparable or superior functionality, while others reported benefits. The Labour government now faces a decision on whether to exercise a break clause in its seven-year contract with the US technology company.

Freedom of information responses reviewed by the Guardian reveal that NHS organisations covering millions of patients are rejecting Palantir's £330m federated data platform (FDP), introduced in March 2024. The University Hospitals of North Midlands NHS trust said the system 'does not appear to provide functionality over and above what we have already', while Dorset HealthCare University trust said it 'will not be adopting or going live with the FDP'. Greater Manchester's care board described the platform as 'duplicative' and 'retrograde'. Cambridgeshire and Peterborough NHS foundation trust found it offered 'not offered significant improvements on local systems'. Avon and Wiltshire mental health partnership NHS trust said it had yet to find an FDP tool offering significantly more than existing capabilities. University Hospitals Birmingham NHS foundation trust, which serves over 2 million people, said it had no plans to use it due to 'limited expected benefit over existing solutions'.

However, some trusts did report positive experiences. A Suffolk trust said the FDP had made it easier to manage waiting lists and improved surgery scheduling. Gateshead and other trusts also found benefits.

Palantir's senior vice-president, Tom Watson, a former Labour MP who was appointed as the company's chief lobbyist last month, defended the contract. He said that if other companies could do the job, 'they would have taken part in free and open competition' to run the FDP. The FOI responses were gathered by Medact, a health campaign that opposes Palantir's role in the NHS, and posted to the transparency website WhatDoTheyKnow.

The controversy comes as Prime Minister Andy Burnham's government considers whether to exercise a break clause in the seven-year deal. Protests against Palantir have highlighted its contracts with the Israeli military and Donald Trump's homeland security forces, as well as comments by co-founder Peter Thiel, who said in 2023 that 'the NHS makes people sick'. Two parliamentary select committees have also urged the government to reassess the deal.

Analysis

Why This Matters

The decision on the Palantir contract will affect how NHS England manages patient data across the health service.
It raises broader questions about the role of controversial US technology companies in British public services.
If the break clause is exercised, it could set a precedent for how future contracts with Palantir are viewed.

Background

The NHS signed a seven-year, £330m contract with Palantir in 2024 for a federated data platform designed to integrate patient data and improve efficiency. Critics have opposed the involvement of Palantir due to its work with the Israeli military and the Trump administration, and after co-founder Peter Thiel said that 'the NHS makes people sick'. Tom Watson, a former Labour minister, was appointed as Palantir's chief lobbyist to defend the deal.

Key Perspectives

Trusts rejecting the platform: Argue that existing systems are sufficient or superior, with no added benefit. Some found the FDP retrograde or duplicative. Trusts using the platform: Reported improvements in managing waiting lists and scheduling surgery. Palantir and Tom Watson: Contend that the platform won an open competition, implying that any better solution would have come forward. Watson warned against letting 'mob rule' lead procurement practices.

What to Watch

The government's decision on the break clause in the Palantir contract.
Possible legal challenges or political fallout if the contract is terminated.
Further FOI disclosures and public campaign actions by groups like Medact.

Sources

Palantir patient data tech rejected by many NHS trusts in England — UK news | The Guardian