In the CEO interview on YouTube dated 4/12/15 he said " I would be very surprised if we didn't get updateS from Virtualstock within the next 3 to 6 months OR even in the next 3 months .... That will make the current valuation (£58m mkt cap) OUTDATED " .
Also he says that VS has increased 135% in the last 18 months and he expects it to increase a lot more in the next 18 months because it's at that point of a j curve where it's about to go horizontal .
Our stake in VS alone is currently worth 0.18p , so if we say VS will increase 500-1000% (very achievable) then we are looking at share price of 0.9p to 1.8p at some point next year (maybe sooner) .
Our CEO knows it's a done deal with the NHS and that's why he says "VS can easily become a unicorn company " (meaning that it could have a $1 billion mkt cap" and we own 7 % of it .
http://www.bbc.co.uk/news/health-35514382 The government are certainly trying to move the whole NHS IT systems forward. Hopefully news of a VS multi-million £ contract with the NHS will be confirmed/announced soon which must surely see the sp of leg rise to give us investors a very.very handsome profit.
Lord Carter of Coles published his interim report for the ‘Review of Operational Productivity in NHS providers’ in June 2015.
The ambition of this review and the prize it seeks is huge. Based on the data so far available he believes that savings of up to £5bn per annum could be realised by 2020, with optimisation of procurement contributing at least £1bn of savings, and more if electronic procurement is used to reduce holding levels and wastage of pharmaceuticals.
Just considering procurement of everyday consumables, high-value medical devices and common goods & services it is clear that there is huge price variability (>35% in some cases), real challenges in invoice matching (18% matching across the cohort of 20 hospitals surveyed) and ineffective catalogue management (500,000 items vs best practice of 6,000 - 9,000 items).
His recommendations in this area are clear; implement an Adjusted Treatment Index to measure performance, develop a ‘model NHS hospital’ framework that describes best practice, optimise pharmacy while maintaining or improving patient outcomes and develop an effective and efficient approach to catalogue management.
But he also recognises that change must come from the within the NHS itself, supported by, but not led from the centre.
That’s where Virtualstock’s The Edge comes in.
We are working with the NHS’ largest teaching hospital to transform their Purchase To Pay process, delivering control, compliance and an optimised catalogue.
The first phase will enrol the catalogues and prices of their largest suppliers, which will cover around 60% of their consumables spend. This will be followed by enrolling the long tail of smaller suppliers, allowing them to make their full ranges available.
Requisitioners and category managers will have rich product data, price transparency and product availability information at their finger tips so that they can make the best purchasing decisions.
The second phase will be to open up the platform for order management, which will give all stakeholders end to end visibility of the supply chain, order status and procurement performance.
However, once suppliers have loaded their catalogues these can then be exposed to any other NHS Trust that they supply or indeed want to supply. And any NHS Trust can discover new suppliers.
Virtualstock’s The Edge, delivering cost effective and scaleable change, led from within the Trusts themselves, ensuring best practice and best prices at the point of purchase.
We believe the quickest way to solve the problem of poor procurement data on prices and volumes is to accelerate the implementation of a single NHS electronic catalogue, and so we have been working on a national solution.
NATIONAL SOLUTION = (contract with VS for 1200 hospitals country wide using the edge tech) IMHO .
We also know inventory management practices and the adoption of electronic catalogue systems vary significantly across hospitals, with both good and bad practice. This makes it difficult to obtain reliable information on volumes of products used by hospitals thereby negating meaningful comparisons using the ATI metric. However, we do believe there are greater savings to be had by managing the demand for products through better inventory management rather than price reductions. And we do think a target of £500m – 1bn savings on the £9bn procurement spend is realistic. Every day Consumables In the procurement of supplies we know that global best practice for everyday consumables is a catalogue of around 6,000 – 9,000 product lines with price variances of 1-2%. In the NHS it is as much as 500,000 lines with price differences sometimes over 35%. We also know that hospital systems around the world have strong adherence to a ‘core list’ of products with compliance levels of over 90%. Furthermore, if any product is changed on the list, compliance levels of over 80% are achieved within a month of implementation. In a devolved NHS we do not have this level of compliance with hospitals making their own decisions about what they want to use – thus reducing the opportunity to use NHS purchasing muscle with suppliers. The NHS Supply Chain contract was not set up to deliver this kind of approach. Instead we have pursued a retail type model without commitment from hospitals which has led to the proliferation of products used across the NHS. We have already taken steps to address and will explore how we can align with global best practice. We have been working with Chief Nursing staff across the NHS and the Royal College of Nursing to see if we can agree a radically reduced range of products to be channelled through NHS Supply Chain. Early indications are that such an approach will deliver 10-20% savings on the NHS everyday consumables bill.
Datafeed and UK data supplied by NBTrader and Digital Look.
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