Last checked at 11 Apr 2022 07:00
Induction Healthcare Group PLC
("Induction", the "Company", or the "Group")
NHS England contract renewals secure £6.6m annual recurring revenues for Induction Attend Anywhere
Retention rate significantly above management expectations
Majority have moved into multi-year contracts
Induction (AIM: INHC), a leading digital health platform driving transformation of healthcare systems worldwide, announces that following the recent contract renewal process across NHS England for remote consultation services in secondary care, Induction Attend Anywhere ("AA") contracts have been successfully extended or renewed across 94% of existing contracts. This is significantly above management expectations and takes effect from 1 April 2022.
£6.6m of annual recurring revenue will be recognised in FY23 as a result of the above contract renewals. In addition, whereas previously all contracts were for a one-year term, the new contracts have terms ranging between 1 year and 3 years, with the majority committing to at least 2 years. This results in an aggregate contract value of £10.9m.
Background to the AA contract renewals
Induction Attend Anywhere (https://inductionhealthcare.com/attend-anywhere) is a purpose-built suite of services, tools, and resources that have introduced video consultations into everyday practice across NHS Health services in England, Scotland and Wales. It offers patients the option to attend a healthcare appointment via video, in a way that benefits the patients, healthcare professionals and the healthcare system.
In early 2020, NHS England centrally contracted with Attend Anywhere, following a successful national roll-out of AA in Scotland and regional pilots in England, to offer patients and providers the option of remote consultations in secondary care. A few months later the Covid-19 pandemic emerged. The roll-out of Attend Anywhere under lockdown conditions was one of the fastest of a single technology in NHS history.
This centralised NHS England contract expired in March 2021, devolving as planned into a series of competitive regional tenders. Central funding was made available to enable NHS Trusts to license a platform of their choice, to 31 March 2022.
The NHS contract renewals announced today, undertaken in a highly competitive situation, deliver a 94% retention rate - the Directors believe that this represents a significant endorsement of the Induction Attend Anywhere solution, and clear justification for the claim to be the UK's market leading video consultation service used in secondary care.
AA is now the embedded system of choice for NHS video consultation across the British Isles. Outpatient appointments across NHS England delivered via video using the Induction Attend Anywhere platform, saved 4.64 million hours in patient travel and wait times and £40 million in patient travel costs and parking charges over the course of a year (March 2020 - March 2021)*.
James Balmain, Chief Executive Officer of Induction, commented: "We are absolutely delighted by such a significant endorsement of the Induction Attend Anywhere video consultation solution.
"When we acquired Attend Anywhere in June 2021, we knew that the change to regional procurement might present more of a challenge than national and were aware of the clear competitive pressure from global video conferencing providers, who've become household names during the pandemic. It is a testament to the strength and quality of our offering, and to the speed of business integration, that we were in a position to open negotiations within months of the acquisition and complete this complex process within deadline.
"The conversion rate for these renewals, and the fact that the majority have opted for multi-year contracts, shows that our purpose-built technology has not only become a trusted, long-term solution for secondary care in the UK, but one of the most widely used technologies to be rolled out as part of the digital transformation of the NHS. This not only reinforces the significance of the acquisition but also the intrinsic value that Attend Anywhere brings to the Group as part of an integrated and all-encompassing digital health platform.
"We look forward to providing an update on the financial year just ended in late April."
ENQUIRIES
Induction James Balmain, Chief Executive Officer Guy Mitchell, Chief Financial Officer | Via Walbrook PR Ltd: induction@walbrookpr.com |
|
|
Singer Capital Markets (Nominated Adviser and Broker) | +44 (0)20 7496 3000 |
Philip Davies / Kailey Aliyar |
|
|
|
Walbrook PR Ltd | induction@walbrookpr.com |
Paul McManus / Alice Woodings | Mob: +44(0)7980 541 893 / +44 (0)7407 804 654 |
About Induction - www.inductionhealthcare.com
Induction (AIM: INHC) Induction delivers a suite of software solutions through a single integrated platform that transforms care delivery. Our system-wide applications help healthcare providers and administrators to deliver care at any stage remotely as well as face-to-face - enabling a more flexible, efficient and positive experience for the communities they serve. Purpose built for integration with leading Electronic Medical Record (EMR) platforms, our products offer immediate stand-alone value that becomes even greater when integrated with pre-existing systems.
Used at scale by national and regional healthcare systems, as well non-health government services, our applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles.
*For information on the independently recognised benefits of video consultations in secondary care please refer to Edge Health report September 2021: https://www.edgehealth.co.uk/outpatient-video