Emis confident it can overcome NHS funding gap

Healthcare software firm Emis Group said headwinds created by the NHS funding gap have created a difficult operating environment with delays to procurement.
Emis CEO Chris Spencer said digitalisation could save the NHS billions of poundsEmis CEO Chris Spencer said digitalisation could save the NHS billions of pounds
Emis CEO Chris Spencer said digitalisation could save the NHS billions of pounds

Despite this the Leeds-based group said it had delivered results in line with expectations, with adjusted operating profit rising 6 per cent to £38.8m in the year to December 31.

Revenue rose 2 per cent to £159m.

The group said it is confident it can overcome short term headwinds and secure a positive outlook in 2017 and beyond.

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Emis chief executive Chris Spencer said the gap continues to widen between the demands of a growing population with more long term health conditions and the Government’s desire to slow down growth in NHS funding.

“The Government wants to take as much activity out of expensive places like hospitals and move it to GP surgeries,” he said.

“80 per cent of people who go to A&E (Accident and Emergency) need help from other people and 80 per cent of people going to GPs need to go to pharmacies. We are able to help with that.”

Emis said it helps healthcare professionals in over 10,000 organisations share vital information, facilitating better, more efficient healthcare and supporting longer and healthier lives.

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The group said that research shows that digitalising the NHS could save the Government billions of pounds.

Mr Spencer said that if an elderly, unconscious man is taken to A&E, doctors have to do all sorts of tests.

However a digitalised NHS would be able to work out that he might have been to A&E the week before and produce previous blood and other tests so they don’t have to be done again.

These mobile health records are available in Emis Web, which enables healthcare professionals to record, share and use vital information.

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Another growth area for the group is Patient.info, which helps people to manage their own health and well-being so they don’t have to visit their GP or hospital.

Patient.info attracted 18.3 million unique monthly visitors in 2016, up from 11.5 million the previous year.

Mr Spencer said a detailed business plan is in place for an investment of up to £7m in Patient.info over the next two years as part of a plan to drive growth over the next five years toward a targeted annual revenue of £50m.

Analyst Chris Glasper at N+1 Singer said: “An in line set of prelims has been somewhat overshadowed by confirmation that investment in Patient.info will cost £7m over the next few years.

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“The ambition is to build a £50m revenue line within five years, which is to be applauded and would be transformational for the group if successful. The up front costs will however require a tempering of group profit expectations. Expect downgrades of around 10 per cent or so.”

Mr Spencer said that Patient.info is being put together with an app that allows patients to do many things, such as order repeat prescriptions or contact their GP privately.

“We think it will grow to £50m revenue by 2021,” he said.

“Yes, it’s an ambitious goal, but it takes into account a lot of opportunities.”

Mr Glasper said: “The core Primary & Community Care division had a good performance, with market share amongst GPs stable at 55 per cent despite the well publicised lack of large new contract opportunities in the period.”

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