It has really been a busy week news wise for Medical Director, who provide one of the major GP practice management systems in the country.
First we had a press release saying that the company was part of a winning tender in the UK and as a result were moving into the UK market.
Monday 21st October 2019
Medicaldirector Launching In Uk Healthcare Market After NHSs Digital Contract Award
Leading healthcare software company MedicalDirector, has today announced its upcoming entry in the United Kingdom (UK) after being notified by the technology unit of the UK’s national healthcare provider, the National Health Service (NHS), that MedicalDirector is to be awarded a contract to provide its cloud software to General Practitioners (GPs) in the UK.
MedicalDirector will participate in a £484 million UK government investment program to upgrade GP practice software and clinical health record technology through its GP IT Futures program. The GP IT Futures program is a critical enabler for the NHS Long Term Plan, which includes £4.5 billion of new investment to transform patient care in general practice and deliver an NHS which is fit for the future.
MedicalDirector was awarded the contract given its cloud software’s unique capabilities to deliver next generation software to GPs and patients in the UK. MedicalDirector is the first cloud-native market participant to be awarded a contract to provide its software services in the UK, and one of only three new entrants in the UK over the last twelve years capable of providing core primary care clinical systems to the NHS.
MedicalDirector is assisting the NHS meet its vision and commitment for improved care and health outcomes through improved software and interoperability. MedicalDirector’s entry into the UK is a significant opportunity, providing access to a major new market estimated to have over 55,000 GPs who are estimated to provide over 350 million patient consultations each year.
MedicalDirector Chief Executive Officer, Matthew Bardsley, described the contract award as transformational for MedicalDirector, the NHS, clinicians and patients in the UK.
“Our selection by the NHS is an incredibly significant endorsement of MedicalDirector’s Helix software platform and capability to help reinvigorate the UK healthcare system.
To be awarded a contract that enables MedicalDirector to enter the UK with the NHS is real validation of our Helix platform and its ability to deliver substantial benefits to healthcare markets around the world. We are the leading healthcare software platform in Australia and now our capability is being recognised by one of the largest and most important medical markets globally with over £220 billion of annual healthcare expenditure.”
Her Majesty’s Trade Commissioner for Asia Pacific, Natalie Black, an appointed representative of the UK Government’s Department for International Trade in the Asia Pacific region, said:
“We are excited to see MedicalDirector awarded this contract and look forward to working with MedicalDirector to support their entry into the UK market. It is a great example of how we can work together to continue to improve the outcomes of our respective countries health systems.”
The NHS has selected MedicalDirector’s cloud-based platform, Helix, as being able to transform patient care in general practice across the UK, as it is uniquely positioned to meet the objectives of the GP IT Futures program.
Key benefits of MedicalDirector’s Helix software include:
· simplified patient and practice workflows that use the latest tools and technologies to provide a revolutionary new patient-centric practice experience;
· highly secure platform that ensures data is fully encrypted, backed-up, easily recoverable and secured with strict role-based access;
· seamless integration of our practice management, clinical health record, billing and patient engagement software enabling faster and more collaborative workflows for every role in the practice; and
· open architecture platform that enables interoperability between systems using latest health technology standards (including Fast Healthcare Interoperability Resource, known as FHIR).
Mr Bardsley said, “We have been helping medical practices in Australia deliver care to their patients for over 25 years and to be chosen by the NHS to enter the UK with our Helix product is a significant milestone. We will continue investing in our products to unlock more opportunities in Australia, the UK and the global healthcare software and technology market.
“As part of the NHS program, we are focused on working with the NHS to localise and integrate Helix into the NHS’ national infrastructure in readiness for bringing Helix to the market as soon as possible. “
MedicalDirector’s software is used by more than 20,000 clinicians and each year the platform processes more than 70 million patient consultations.
Here is the link:
This all seemed pretty exciting until one read this from the UK.
56 newcomers awarded agreements under GP IT Futures
Fifty-six new entrants to the NHS primary care market are due to be awarded contracts under the GP IT Futures framework.
Owen Hughes
21 October, 2019
NHS Digital has notified 69 suppliers of the intention to award them framework agreements under the contract vehicle for primary care IT, pending the completion of an assurance process.
The successful supplier systems will become available from January 2020, following the phase-out of the existing GP Systems of Choice (GPSoC) framework this December.
A total of 73 suppliers submitted tender applications for the new £484 million general practice IT framework, of which 69 were successful.
This includes 16 existing suppliers, three new entrants offering core clinical systems and 53 new entrants offering “a range of additional system capabilities to the UK primary care market.”
Sarah Wilkinson, CEO of NHS Digital, said: “We are delighted that the supplier community has responded so positively to our proposal for the next generation of these systems, and are going to provide such a rich set of technical solutions for primary care.
“We look forward to working closely with all of them over the coming years, and I thank them all for the work they have done to ensure their solutions meet our new standards and for their work in delivering them into the primary care system.”
Lots more here:
One is left wondering just how much this will all turn out to be worth given the huge number of other vendors involved.
You can see the full list here:
To further confuse things this appeared in the AFR’s Street Talk column which reports rumours of future transactions, even earlier.
Bankers scan buyers for Affinity's MedicalDirector
Oct 20, 2019 — 8.59pm
Pan-Asian private equity firm Affinity Equity Partners has been talking to investment bankers about the future of its Australian medical practice software company MedicalDirector as it gets ready to consider exit options.
Street Talk understands Affinity's operatives have given a handful of bulge bracket investment banks an update in recent weeks to explain what it had done to the business during the past three years and where it was headed.
Affinity Equity Partners bought MedicalDirector for $155 million in 2016.
While sources said there were no formal mandates up for grabs – yet – Affinity was also keen to test bankers' ideas on potential exit options, sale strategies and even valuation.
The private equity dealmakers have seen a handful of comparable deals offshore and were keen to know where appetite may come from for MedicalDirector.
Here is the link:
So private equity is looking to bail out.
More detail appeared a day or so later:
Jefferies readies Affinity's MedicalDirector for buyers
While the sale process is at a very early stage, Jefferies has started contacting trade and other potential buyers to introduce the company, as first reported by this column on Tuesday.
Sources said Jefferies had been tasked with identifying a wide universe of global buyers and would be roadshowing the company offshore.
MedicalDirector will no doubt be keen to point out it was this week selected to participate in the UK's $600 million investment program to upgrade GP practice software and clinical health record technology in the National Health Service.
This marked the first time the NHS had opened up the market to a new general practice healthcare software player in over 12 years.
“To be awarded a contract by the NHS is real validation of our Helix platform and its ability to deliver substantial benefits to healthcare markets around the world," MedicalDirector chief executive Matthew Bardsley said on Monday.
More details here:
Colour me sceptical but this seems pretty grossly over-hyped. The UK contract offers no guaranteed sales and one really does wonder just how good a fit an Australian Practice Management system would be for UK conditions. It would not be all that close I suspect with e-Prescribing, messaging, practice billing etc. all being very different to say nothing of how coding is done.
Seems to be Affinity is pretty keen to exit on any reasonable terms!
What do you think?
David.
4 comments:
69 new suppliers for GP systems. To quote Sir Humphrey Appleby, "That's a brave decision".
It might even be courageous
The correct quotes (Sir Humphrey never said brave)
Sir Humphrey: If you want to be really sure that the Minister doesn't accept it, you must say the decision is "courageous".
Bernard: And that's worse than "controversial"?
Sir Humphrey: Oh, yes! "Controversial" only means "this will lose you votes". "Courageous" means "this will lose you the election"!
Will Minister Hunt's response to the ANAO review be controversial or courageous?
Maybe Tim, the communications expert/spin doctor, will advise him.
Don't worry governments are so much better at delivering IT systems. Just look at how well the Victorian government has been doing with its system for issues and collecting fines.
A fine mess: flawed IT system wreaking havoc for the Vic government
https://www.themandarin.com.au/118902-flawed-it-system-wreaking-havoc-for-the-vic-government/
Fines are so much more complicated than, say, healthcare, don't you think?
Nothing odd here. The key part of MDs owner's Exit strategy is to beef up its reputation in the hope of enticing an investor to pay top dollar for the company. Telstra Health balked at $150 million last time but it might be prepared to pay over the top this time.
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