Contract

One Health Group PLC

15 April 2024

 

15 April 2024

One Health Group PLC

("One Health")

Two Major Contracts Renewed on Significantly Longer Terms

One Health Group PLC (AQSE: OHGR), the independent provider of free high quality NHS care for patients referred for treatment in Orthopaedics, Spine, General Surgery and Gynaecology, announces that two of the largest NHS commissioners with which it works have renewed their contracts. It is expected that these new agreements will run for five years rather than twelve months, which has been the case previously, and will cover approximately 4,000 new patients and 2,000 surgical procedures per year.

The two contracts are with Lincolnshire Integrated Care Board (ICB) and South Yorkshire ICB who also act as One Health's lead commissioner for Derby and Derbyshire and West Yorkshire ICB's. Under these agreements, One Health will continue to provide free care to NHS patients over a longer term in Doncaster, Barnsley, Rotherham, Sheffield, Wakefield, Kirklees, Leeds, Bradford, Calderdale, Derby and Derbyshire and most of Lincolnshire. One Health has worked with the majority of these NHS commissioners for over 10 years.

Prior to these agreements being established, One Health operated under multiple, individual 12-month Clinical Commissioning Group contracts with each one being renewed every April. Following the establishment of ICB's, and the abolition of Clinical Commissioning Groups in July 2022, the annual contracts continued, but incorporated wider regions that were previously covered by individual CCG contracts.

Under the new contracts, rather than conducting a 'mini tender' process across multiple regions every year, One Health will provide updated policies and supporting documentation as well as anticipated activity levels for the following year by region. As pricing will continue to be set by the 'National NHS Tariff' there is no requirement for any financial negotiations. This means the amount of time and effort spent administering renewals by both the NHS and One Health, will be significantly reduced.

One Health will be publishing a trading update for the group for the year to 31 March 2024 on Monday 29 April 2024.

Adam Binns - CEO of One Health Group said:

"These longer-term commitments are a clear indication of the value we deliver to the NHS' infrastructure and also demonstrate the vital role we play in its supply chain. Most importantly, having this certainty in place will allow us to focus even more closely on activities that make a difference to the lives of patients as we will have the confidence to consider new investments in facilities and additional support services at a time when central government public funding is under pressure."

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About One Health Group

One Health engages over 100 NHS Consultants who sub-specialise in the various surgeries offered by the Group, through a growing network of community-based outreach clinics and surgical operating locations. In the year to March 2023 One Health serviced almost 12,000 new patients, through over 29,000 consultations and performed 5,790 surgical procedures. One Health uses surgeons and anaesthetists that are mostly employed by the NHS, on a consultancy basis. It currently works with over 100 professionals across seven hospitals and over 30 CQC registered clinics.

One Health's activities are focused on areas where the patient needs are under-supplied by the local NHS service as well as locations where population density is relatively high, and the level of private medical insurance is relatively low. One Health has also sought to expand geographically from its head office in Sheffield, South Yorkshire into neighbouring counties, which meet the required criteria. Currently, the Group's activities are focused in Yorkshire, Lincolnshire, Derbyshire, Nottinghamshire and Leicestershire. Revenue in the year to 31 March 2023 was derived from 60 Clinical Commissioning Groups in addition to contracts directly with NHS hospitals to manage their internal waiting lists.

One Health's business model has focused to date on four main areas: being Spine, Orthopaedics, General Surgery and Gynaecology. The split of inpatient procedures in the year to 31 March 2023 was as follows: Orthopaedics 44% Spine 27% General Surgery 22% Gynaecology 7%.

Orthopaedics and Spine are particularly attractive areas for One Health as the Directors believe that they benefit from powerful growth drivers in terms of an ageing demographic, physical inactivity and an increasing proportion of the population being categorised as obese. Within orthopedics, the most common surgeries performed by One Health are knee and hip replacements.

*(https://www.onehealth.co.uk/investors)

The Directors of One Health Group plc accept responsibility for the contents of this announcement.

For more information, please contact:

One Health Group plc                                                                                    via Square1 Consulting

Oberon Capital - AQSE Corporate Adviser and Broker                    [phone]

Nick Lovering

Mike Seabrook

Adam Pollock

Square1 Consulting                                                                                        [phone]

David Bick                                                                                                           [phone]

 

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