A company which supplied the UK's National Health Service with bedside telephones and other entertainment services has gone into administration, according to a report.

The banking syndicate which backed Patientline has decided that the firm has no hope of financial recovery, ComputerWeekly.com says.

It states the bankers have set up a company which will buy Patientline's assets and continue its operations.

Patientline had attracted a backlash when it introduced premium rate incoming call charges on the hospital bedside telephones and charged patients up to £3.50 a day for watching televisions it supplied, according to the website.

It says the firm saw a decrease in revenues, which was also in part due to many hospitals relaxing the ban on the use of mobile phones.

In related news on NHS IT services, ITPro recently reported that an NHS trust in Wales has achieved annual cost and power consumption savings estimated at £40,000.

It said the Hywel Dda Trust has implemented changes together with Esteem Systems to develop its computer network and information management systems.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)