Greg Reed, president of eHealth, confirmed Tuesday that notice of termination has been sent to CGI Information Systems and Management Consultants Inc.
A resolution passed by the eHealth board of directors on Sept. 5 had recommended terminating the $46.2-million agreement to build a diabetes registry.
CGI and eHealth announced the six-year deal on Aug. 9, 2010 for the company to design, build and maintain the registry to better monitor diabetes patients.
Spokesman Robert Mitchell has said no money has been spent on the unfinished registry, and alleged CGI had regularly missed development deadlines.
Health Minister Deb Matthews says she supports the decision by eHealth to cancel the contract, noting it protects taxpayers from $46 million in spending.
"The Ontario Diabetes Strategy continues to be implemented, including ensuring that every person with diabetes in Ontario who wants a family doctor has access to one," Matthews said.
"I am working in partnership with diabetes advocates, like the Canadian Diabetes Association, to ensure that the electronic component of the Ontario Diabetes Strategy best serves the needs of people with the disease," she said.