The new IT systems in the NHS will deliver better care and an estimated £1.14bn savings by 2014, say the government.
The first annual Benefits Statement suggests that the NHS National Programme for IT has already saved £208m since its introduction by providing quicker and more efficient patient care.
The delivery of the national NHS network has saved £192m and another £14m has been saved through the use of digital imaging and scans.
The NHS National Programme for IT is the first to fully implement a digital image and scanning system in any G8 country.
Annual savings of £120m a year have been forecast based on information from 2006/2007.
Health minister Ben Bradshaw said: "Our use of computer technology in the NHS is becoming the envy of the world.
"It is saving lives, saving time and saving money. If you talk to health and IT experts anywhere in the world they point to Britain as an example of computer technology being used successfully to improve health services to the public."
Chief Executive of the NHS David Nicholson added: "This report shows that we've made really solid progress against delivering an integrated IT system for the NHS, which is not only making us more efficient but is helping our clinicians and staff deliver better, safer services for patients."