Arun House, Contracts and Compliance, Brimson Mews
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Genmed is a vendor neutral managed service provider specialising in the health sector. Founded in 2007 and based in London and Wales, it works with 42 NHS Trusts and Health Boards around the country where, to date, it has 250 contracts supporting a variety of clinical disciplines such as pathology, surgery, endoscopy, imaging along with medical records, IT and facilities. Genmed’s asset finance requirements are funded by large blue-chip partners including Societe Generale and GE Capital. Currently Genmed’s contract portfolio totals around £620 million.
Who is Genmed?
- Genmed is a specialist provider of vendor neutral managed services to the NHS. It supports all acute Trusts in a broad range of areas: pathology, endoscopy, renal, surgery, estates, IT and imaging and even digital transformation initiatives like medical records scanning and software.
- A British company privately owned by its current directors, Genmed has a proven track record of success working in the NHS. It is self-funded, financially stable and profitable. It provides a unique service and much needed capital to the NHS via its managed service contracts. The business employs 42 staff and is located in London, with a back-office team in Cwmbran, Wales.
How do NHS Trusts benefits from vendor neutral managed services?
- Genmed is not a leasing company or finance house. Its role is much wider and more consultative. Genmed works with Trusts to ascertain what clinical facilities or technology they need, their workload issues, it finds and selects suppliers, negotiates and drives costs down, puts together the finance, manages all the contracts, pays subcontractors and takes all the risk upfront itself.
- Genmed is vendor neutral such that if a NHS organisation wants equipment from a variety of companies, this can easily be incorporated with clinicians not forced to have products they don't want.
- Genmed therefore working holistically with hospitals to help them review how to carefully re-engineer and manage their supply chains, purchasing, inventory and stock control to improve efficiency and lower costs. This analysis can be granular even down to a clinical procedure or individual surgeon level.
- In line with Lord Carter’s recommendations to improve hospital efficiency, Genmed also removes the back-office administration burden of contract and invoice processing from Trusts and delivers this for them ensuring that orders are managed and chased, suppliers’ bills are paid and reconciled and regular management information is then provided. Given volumes can be high, this is a massive benefit for Trusts who make tens of thousands of orders each year generating a similar number of invoices.
- Genmed is an approved supplier on various NHS Framework agreements so that NHS organisations avoid having to go through the time-consuming and costly OJEU tender process to procure and buy services.
How do Genmed managed services work?
- Genmed works in close partnership with Trusts to create a bespoke solution with costs packaged using an umbrella contract with the service billed over time, typically quarterly.
- All costs are ‘smoothed’ with no big upfront investment required. Not only can the costs be spread out, but under HM Treasury directive rules for contracted out services, public sector organisations including the NHS can recover the VAT which means a 20% refund by HMRC on the managed services billed. This is an approved initiative to foster a closer working relationship between the private and the public sector.
- Genmed’s managed service costs are treated as an operational not a capital expense and are off balance sheet which is critically important for Trusts with no Capital Resource Limit headroom. Genmed’s pricing for contracts is completely transparent. It charges a 6% fee so a Trust will net 14% once the 20% VAT is refunded. It’s simple and straight forward with this whole tax efficient approach making its managed services extremely compelling – Trusts in effect get a 14% budget benefit.
Genmed works with a variety of Trusts such as Countess of Chester Hospital, London Northwest University Healthcare, Norfolk & Norwich University Hospitals, Nottingham University Hospitals, South West London Elective Orthopaedic Centre and Wirral University Teaching Hospital among others.