The government is to end the NHS's National Programme for IT, following a review by the Cabinet Office's Major Projects Authority (MPA).
The review states that the programme has not and cannot deliver its original intent.
The NHS Programme for IT was created in 2002 under the last government and the MPA has concluded that it is not fit to provide the modern IT services that the NHS needs.
The MPA found that there have been substantial achievements which are now firmly established, such as the Spine, N3 Network, NHSmail, Choose and Book, Secondary Uses Service and Picture Archiving and Communications Service.
Their delivery accounts for around two thirds of the £6.4bn money spent so far and they will continue to provide vital support to the NHS.
The Department of Health have stated that in a modernised NHS, which puts patients and clinicians in the driving seat for achieving health outcomes amongst the best in the world, it is no longer appropriate for a centralised authority to make decisions on behalf of local organisations.
A new partnership with Intellect, the Technology Trade Association, will explore ways to stimulate a marketplace that will no longer exclude small and medium sized companies from participating in significant government healthcare projects.
The Department of Health said: "The NPfIT achieved much in terms of infrastructure and this will be maintained, along with national applications, such as the Summary Care Record and Electronic Prescriptions Service, which are crucial to improving patient safety and efficiency"
"But we need to move on from a top down approach and instead provide information systems driven by local decision-making. This is the only way to make sure we get value for money and that the modern NHS meets the needs of patients."
Department of Health