Norfolk and Norwich University Hospitals selects Genmed as its vendor neutral managed services provider for laboratory medicine
Genmed announces today that it has been selected by Norfolk and Norwich University Hospitals NHS Foundation Trust as its preferred vendor neutral managed services provider for laboratory managed services including the procurement of pathology equipment and consumables.
Serving a catchment area of about 1 million patients, laboratory medicine in the Norfolk and Waveney area is managed by the Eastern Pathology Alliance Network (EPA) – a joint venture established in 2012 between Norfolk & Norwich University Hospital, the James Paget University Hospital and the Queen Elizabeth Hospital Kings Lynn. Employing 4o0 staff, the EPA runs laboratories on the three hospital sites with procurement centralised for all.
Dianne Gibson, Eastern Pathology Alliance Network Manager, explains, “The goal of the EPA is to provide a common pathology service across the network to deliver greater efficiency and cost benefits in response to Lord Carter of Coles’ recommendation that Pathology expenditure should be reduced by between 10 and 20%. Our focus is to achieve this without comprising the quality of care for patients.”
A new managed services contact for pathology offering total flexibility
Genmed will provide a managed service which continues to offer a centralised method for procurement including running mini tenders yet allows the EPA to choose best of breed technology from any pathology supplier it wishes to select without the tender and contractual process constraining this.
Furthermore, Genmed will work on the EPA’s behalf to drive costs down further to achieve greater value for money, as well as improving administrative efficiency while maintaining quality of service.
Gibson says, “Our previous managed service contract for pathology was signed in 2006 for a ten-year period and only covered clinical biochemistry and haematology. It was quite restrictive given we could only source equipment or services that we had specified in the original tender offer. It lacked the flexibility we wanted.”
The new umbrella agreement with Genmed is the reverse and enables the EPA to incorporate any pathology requirement under a managed service contract. This means the scope will now be broadened to not only include clinical biochemistry and haematology but microbiology and cellular pathology which will include in the region of 40 suppliers or more.
The type of equipment which will be procured by Genmed for the EPA covers clinical biochemistry and haematology analysers, toxicology analytical equipment such as tandem mass spectrometers, microtitre plate washers and readers, point of care devices such as glucose monitors, as well as all consumables needed like assay kits, tubes, cups, pipettes, diluents and so on.
Genmed managed services allow VAT recovery and better forecasting
The benefits to the EPA have been immediate as Genmed’s managed services are HMRC compliant for VAT recovery. While it is early days in the relationship with Genmed, five sub contracts have already been signed for equipment which will result in a projected £264,000 cost saving in the first year on reduced consumables prices and VAT recovery with Genmed also negotiating better pricing for the EPA for these contracts.
Gibson says, “Genmed is providing the financing up front for pathology equipment and understand that we need to work within existing budgets plus make savings where possible. That’s why we’re adding in new areas like microbiology and cellular pathology into a managed service to benefit from the value Genmed provides and from the associated benefit of VAT recovery.”
All Genmed managed service costs are ‘smoothed’ with no big upfront investment required by the EPA. Billing is done quarterly which also helps the finance department with its forecasting.
Robin Modak, Genmed’s chief executive officer, says, “The trouble with pathology is it’s seasonal with peaks and troughs of activity. We’ve agreed a quarterly billing cycle so the EPA avoids over or under spending during any given month which helps with their cash flow, plus we manage all the ordering, invoicing and reconciliation which reduces their administrative overhead.”
Gibson concludes, “Pathology is a specialist area and so having a managed services partner who understands all the nuances is very helpful. Our relationship with Genmed is new but I’m happy with what they’re offering, how the contracts are working and their consultative approach such that I would certainly recommend other Trusts give them a go.”
Founded in 2007 and based in London and Wales, Genmed is a vendor neutral managed service provider specialising in the health sector. It works with 40 NHS Trusts and Health Boards around the country where, to date, it has 220 contracts supporting a variety of clinical disciplines such as pathology, surgery, endoscopy, imaging along with medical records, IT and facilities. Genmed’ asset finance requirements are funded by large blue chip partners including Societe Generale, GE Capital, Macquarie and Lloyds Corporate. Currently Genmed’s contract portfolio totals around £430 million.
Genmed is headquartered in Weybridge, Surrey. For further information, please visit www.genmed.eu
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Tom Herbst PR
 Laboratory Medicine is the collective name for a group of pathology disciplines including clinical biochemistry, haematology and transfusion, immunology, microbiology, virology and cytogenetics.