The federal Department of Health should consider whether the $220 million National Cancer Screening Register contract should be terminated or penalties sought from vendor Telstra Health following the costs incurred from a delay in rolling out the system.

A Senate budget estimates inquiry into the contentious contract heard earlier this year that Telstra Health had only been paid $11m of the full $220m cost due to a number of missed milestones for the cervical cancer screening register, which has also delayed the roll-out of the bowel cancer screening register.