South African healthcare company Network Healthcare Holdings (Netcare, NTC) has been selected as the likely preferred bidder for two new treatment centres in the United Kingdom worth around R1,4-billion.
The announcement was made on Friday by the British Secretary of State for Health, Dr John Reid.
Following the tender published in the Official Journal of the European Communities regarding the Independent Sector Treatment Centre programme that was announced in December 2002, Netcare has qualified as the likely preferred bidder for the Greater Manchester and the Ophthalmology Chain of treatment centres.
The Greater Manchester facility aims to perform approximately 45 000 surgical procedures (orthopaedic, general, and ear, nose and throat) over a five-year period at the Greater Manchester Surgical Centre. The Ophthalmology Chain of treatment centres involves performing approximately 49 000 cataract procedures using a combination of mobile and fixed sites over the same period.
Dr Richard Friedland, chief operating officer for Netcare, said the group was up against some of the best global health care players and fierce competition.
The project will be undertaken at the Greater Manchester facility, which is currently under construction, and will be predominantly staffed by South African medical and healthcare personnel although European resources will be used where relevant. The official commencement date for the Greater Manchester Treatment Centre is expected to be June 2004.
The benefits of the treatment centres for both Netcare and South Africa are extensive, Friedland said.
The total combined value of the projects over the five-year period is £114-million or R1,4-billion. Netcare is entering into fixed contracts with guaranteed patient volumes and numbers of elective procedures.
“This means that our investment is protected and the usual risks associated with managing such healthcare facilities are lessened,” said Friedland.
The treatment centres will also assist Netcare in fulfilling its strategic objective of retaining doctors and staff in its hospitals and within the South African health care system.
Given Netcare’s established networks and experience gained through the group’s participation in the Waiting List Initiatives, Netcare believes it has developed and implemented an effective model for operating the treatment centres that will not have an impact on local operations nor denude healthcare resources in South Africa.
Friedland stressed that Netcare’s UK operations are based on a human-resources retention strategy and not a recruitment strategy.
“This may seem paradoxical,” he says. “But our UK projects are not about the permanent recruitment of staff and doctors. Rather, these professionals enter the UK on fixed, short-term contracts only.
“By participating in NHS projects such as the Waiting List initiatives and the treatment centres, Netcare affords its staff and doctors the opportunity to work abroad on a short-term basis only without having to emigrate and forfeit their jobs and other benefits such as medical insurance, pension or provident funds.
“Given the short-term nature of these contracts and the fact that staff may not subsequently work for the NHS for a period of two years, these projects actually help stem the ‘brain drain’ and play a major role in keeping South Africa’s vital healthcare skills in the country.
“Staff employed to assist in the UK return with newly acquired knowledge and the benefit of the experience, which they are able to share with their colleagues.”
Friedland added that further negotiations with the NHS regarding contractual financial and legal issues have yet to take place before Netcare’s selection as final bidder for both projects could be confirmed. These are expected to be concluded before the end of the year he said. — I-Net Bridge