TIDMINHC
RNS Number : 8747H
Induction Healthcare Group PLC
11 April 2022
Induction Healthcare Group PLC
("Induction", the "Company", or the "Group")
NHS England contract renewals secure GBP6.6m 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.
GBP6.6m 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 GBP10.9m.
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 GBP40 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 Via Walbrook PR Ltd: induction@walbrookpr.com
James Balmain, Chief Executive Officer
Guy Mitchell, Chief Financial Officer
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
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