Investment of £1M in B-Plan Information Systems

NewMedia SPARK PLC 8 March 2000 NewMedia SPARK invests £1m in B-Plan Information Systems NewMedia SPARK plc ('SPARK') announces that it has invested £1,000,000 for a 15% equity stake in B-Plan Information Systems Ltd, a Manchester-based supplier of financial and information management software to over 200 NHS hospitals. SPARK may invest further funds to take its stake to 22% over the next few months. The investment will help to finance the development of B- Plan's web-based NHS financial and activity benchmarking system inSIGHT. This will enable hospitals for the first time to measure their efficiency against each other using detailed comparative data over the Internet, giving managers and clinicians unprecedented control over costs and activity. B-Plan was recently nominated in the Technology Fast Fifty Awards as one of the fastest growing IT companies in the North of England. Professor Sir Duncan Nichol, Chairman of B-Plan and former Chief Executive of the NHS said today: 'The health service has been held back for years by lack of quality information. As the IT revolution gathers speed in the NHS, individual hospitals are using technology to radically improve planning and efficient use of resources. B-Plan's insight system will allow them to go further and test their level of achievement against comparable hospitals elsewhere, and against national averages. This investment allows us to transform B-Plan's strategy towards provision of financial and activity benchmarking software and services over the net'. Commenting on the investment Mike Whitaker, CEO of SPARK said today: 'Our investment in B-Plan reflects our belief in the strength of the management team and also in the product. We feel that there is a great need for the inSIGHT technology that is being developed, and that it will be the benchmark software of choice for leading healthcare and other public sector institutions.' NOTES FOR EDITORS: Background Since 1948 the NHS has struggled to find a simple method of costing its treatments and procedures and ensure efficient use of taxpayers' resources allocated to each part of the service. Wide variations exist in hospitals' costing for apparently identical items. There is now a mandatory requirement on each hospital Trust for annual Reference Cost Submissions showing a breakdown of expenditure in a defined format. This aims to identify unacceptable variations in clinical activity and resultant costs (e.g. theatre time, length of stay, proportion of procedures carried out as day cases), and compare overall performance. Present information systems currently suffer from a number of shortcomings. Hospital managers lack the capability to access data at short notice. Producing the Reference Cost Submission to the DoH requires considerable extra expense and effort with little useful feedback. The detail it requires is at HRG (Healthcare Resource Group - a group of comparable treatments) rather than specific treatment level: managers are unable to identify and analyse the make up of HRG's and find the real reasons for cost variations. Previous software packages available on the market which could assist in the task are operating in isolated environments and are creating scattered islands of non-comparable data. B-Plan already provides treatment-specific costing systems for 200 hospitals. It can therefore access, process and compare like-for-like data for more than half of all NHS hospitals, and provide live data of real use to management. B-Plan's inSIGHT system allows managers to submit current costing data in digital form via the internet, and receive benchmarking comparisons in return, with minimal further intervention. Those hospitals not already using B-Plan systems can achieve connectivity by creating generic .dbf files that mimic B-Plan's costing environment. B-Plan Information Systems was founded in 1993 by brothers Shirko and Farhad Abid following their return to the UK as refugees from Kurdistan in 1991. The company has become the leading supplier of costing, budgeting and data warehousing systems to the NHS, with its software in use in over 200 NHS hospitals. B-Plan has recently supplied similar products to the Prison Service, Police Forces and Universities. For further information please contact Phil Paterson on 0161 226 0000 or email phil@b-planuk.com. NewMedia SPARK plc, whose directors include Mike Whitaker, Luke Johnson and internet investment banking pioneer Tom Teichman, was the first London quoted internet start-up fund and raised £40 million in late 1999 through an AIM flotation. 20 investments have since been completed: B-Plan is the first in the healthcare sector. Earlier this week SPARK announced the £85m acquisition of Cell ICD, Scandinavia's leading Internet incubator, coupled with a further £50m fund raising. For further information, contact Alastair King on 0171 851 7734 or Alastair@newmediainvest.com. Michael Whitaker 0468 555944 NewMedia SPARK plc +20 7851 7777 Lisa Baderoon / Tim Anderson Buchanan Communications +20 7466 5000
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