Increasing popularity of NHS managed services drives Genmed’s commercial growth and expansion in Wales
The increasing popularity and adoption of vendor neutral managed services in the NHS means Genmed today announces a strong performance for its financial year ending March 31, 2017 with the business now opening bigger offices in Wales to support this ongoing growth.
As a result, Genmed will also hire 50% more staff primarily in the back-office function but also account management roles to ensure quality of service for its broad range of NHS Trust and Health Board customers.
o Revenues increased 54% to £32.4 million with EBITDA rising 3.46 times to £415,000.
o New investment in larger offices in Cwmbran, Wales will accommodate double the back-office staff currently employed to cope with the anticipated requirements of new NHS contracts over the next five years. Opening in the autumn, Genmed will move into its new offices after custom fitting the building to provide its staff the most comfortable working environment. The flexible design means that the offices can also be used to host supplier and customer presentations for up to 20 guests.
o Wales was chosen given the availability of highly skilled accounting, IT and administrative staff many of whom have related medical experience. When Genmed looked at expanding its back-office activities, it made sense to take advantage of the skills available. In addition to staff, office accommodation in Wales is plentiful and more reasonably priced than within the M25 area.
o Genmed now works for 40 NHS Trusts and Health Boards throughout the United Kingdom including London North West Healthcare, Norfolk & Norwich University Hospitals and South West London Orthopaedic Elective Care.
o Acting as an extension to a Trust’s procurement department, Genmed so far has worked on 59 contracts in 2017 for approved suppliers to provide equipment and consumables. This is up from 50 in the whole of 2016 and 41 in 2015;
o Genmed works with between 500-600 suppliers to the NHS and, in total, now has 220 contracts supporting a variety of clinical disciplines such as pathology, surgery, endoscopy, imaging along with medical records, IT and facilities.
Keith Davis, Genmed’s chief operating officer, says, “The ability to choose the optimal supplier mix combined with a track record of delivering HMRC compliant contracts has seen our revenues rise to £32.4 million in just 10 years trading. The lack of capital resources in the NHS together with the need to reduce revenue costs year on year has led hospitals to seek providers who can generate both economic and efficiency gains. Genmed has demonstrable ability to deliver both.”
Offering a consultative and holistic approach which takes into account patient pathways and broader impact of how specific procurement can impact care provided and the cost thereof, Genmed creates bespoke HMRC compliant managed service agreements which meet the needs of each Trust.
The use of Genmed in the procurement function helps Trusts to reduce costs, rationalise pricing, improve efficiency, enhance clinical productivity, speed up purchasing, minimise administration and invoice processing and ultimately achieve what appears mutually exclusive – doing more with less.
Genmed’s approach since start up is closely aligned with all the key directives highlighted by Lord Carter of Coles in his report to improve the efficiency of hospitals.
Importantly, Genmed is not tied to any third-party supplier and selects consumables and equipment based on close collaboration and input from NHS managers and clinicians. Genmed is therefore unique in the market to offer flexible vendor neutral managed services. This also means Trusts get the very best value for money which is important given the NHS is publicly funded and budget must be spent effectively and transparently.
Genmed’s managed services package all costs using an umbrella contract with the service then billed monthly or quarterly. All project costs are ‘smoothed’ with no big upfront investment required.
Genmed is not a managed equipment provider or a finance house. Its remit is much wider. It is an integral partner working with Trusts to ascertain what clinical facilities or technology they need, their workload issues, finding and selecting suppliers, driving product costs down, putting together the finance, managing the contracts, paying subcontractors and taking all the risk upfront itself.
Genmed has developed from its early focus primarily delivering pathology contracts to now manage contracts which encompass surgery, pathology, flexible endoscopy, IT, radiology, electronic data management and renal. It is able to provide sub-PFI building contracts including finance.
Moving forward, the formation of strategic partnerships and the recruitment of specialist staff will enable Genmed to greatly increase its support of Trusts’ clinical services.
Robin Modak, Genmed’s chief executive officer, says, “Our financial performance this year is an endorsement of the tremendous confidence Trusts have in us to manage their businesses. Over and above VAT recovery which gives Trusts a 20% budget boost, we add value in line with Carter’s recommendations about standardising and rationalising the purchase of equipment and consumables and delivering pricing efficiencies.”