Athene Medical Solutions
Commercial Opportunities for the NHS
Jan 11, 2008
Commercial Opportunities for the NHS
Date as January 11th,
2008. Author- Andrew Clarke.
NHS Trusts who are in the process of producing an Integrated Business Plan as part of their Foundation Trust application; or who have recently been awarded Foundation Trust status should consider more fully the range of commercial opportunities open to them as effectively representatives of “NHS plc”
These can involve the development of specialist services using a “hub and spoke” business model that can extend the geographical reach of specialist services, subject to collaboration with the commissioners of their services- whether these involve the development of a further geographical footprint or an outreach service. Examples of such services that are suitable for this model include: oncology, musculoskeletal services, cardiac services, services related to patients related to disability, just to name a few
The intellectual capital of most NHS Trusts is diverse and also equivalent to that of commercial consulting firms in many respects and this expertise can and is in a few instances developed into commercial offerings for third party organisations: for example- as an operator of healthcare facilities outside of the UK: Guys and St Thomas’s NHS Foundation Trusts . Or the NHS Foundation Trust may create an operating subsidiary: for example- (Moorfields Eye Hospital NHS Foundation Trust). Other NHS Trusts also possess significant brand equity and could emulate this type of business model.
A leading NHS Ambulance Trust has taken the innovative step of developing its own internal consultancy service that is marketed to other NHS Trusts and third party organisations and encompasses performance management systems.
Understanding the cost base of procedures within an NHS setting – which is termed activity based costing, is also important where an understanding of service profitability is of commercial importance. There are third party providers available. One NHS Trust: King’s College Hospital NHS Foundation Trust has developed its own system, which is now being marketed commercially.
Other areas of commercial opportunity may be to draw upon a Trusts’ expertise held by its consultants. This requires carefully compiled research and development policies and intellectual property policies. In the experience of Athene Medical Solutions Ltd- these policies are weakly worded and mean that NHS Trusts expose themselves to situations where consultants can work with for example – providers of surgical services who are enhancing their products with NHS consultants’ advice; but where the NHS Trust itself does not gain a financial benefit.
Another interesting area is the medico-legal arena- which can be developed by NHS Trusts in partnership with their consultants.
This list is by no means exhaustive- but given the establishment of a commercial function, that involves business development/commercial projects by many NHS Trusts; more opportunities for income generation will become available over the next 5 years.
Author- Andrew Clarke, Director-Athene Medical Solutions Ltd; drawing upon his experience as an interim commercial manager and interim commercial director for several NHS Trusts.
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