| Wed 17 Sep 2003, 16:06 | | AFROX HEALTHCARE EXPANDS ITS FOOTPRINT INTO UK |
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AFROX HEALTHCARE LIMITED -
Afrox Healthcare Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1985/001313/06))
(Share Code: AHH
ISIN Code: ZAE 0000022059)
("Ahealth")
PRESS RELEASE
17 SEPTEMBER 2003
AFROX HEALTHCARE EXPANDS ITS FOOTPRINT INTO UK
Afrox Healthcare Limited (AHealth) in conjunction with Care UK Plc, has been
named preferred bidder for three UK National Health Service (NHS) contracts
valued at R2,7 billion over a five year period.
The contracts to manage and operate three diagnostic treatment centres (DTCs) in
Maidstone, Plymouth and Nottingham, will be partnered with Care UK plc, a London
Stock Exchange listed company, and the consortium will be known as Care UK Afrox
Healthcare Ltd.
The announcement, made by the British Health Ministry on Friday 12 September,
saw Care UK"s share climb 17,5 pence to reach 221,5 pence. In total, 130 global
healthcare companies bid for the contracts to manage 24 DTCs. Only seven were
successful in achieving preferred bidder status. They were from South Africa,
the UK, US, and Canada.
Because of a backlog of patients awaiting surgical procedures, the National
Health Service would like the DTCs to be operational as soon as possible. They
will make provision for the preferred bidders to start operating at existing
hospitals before the completion of the DTCs, some of which are yet to be built.
Construction of Care UK Afrox Healthcare"s DTCs will commence as soon as the
contracts have been officially awarded, with the Plymouth and Nottingham
facilities opening in April and July 2004 respectively, and Maidstone in early
2005.
Michael Flemming, managing director of AHealth, flew to the UK over the weekend
to finalise arrangements with Care UK. AHealth will provide the medical
expertise with Care UK providing on-the-ground administration, which is already
in place. Alliance Medical, a UK diagnostics company, will offer radiology
support.
Flemming said, "A UK partner is imperative for a successful long term
relationship as cost effective administration is a key component in operating a
profitable healthcare business."
AHealth will deploy its South African doctors and nurses to the UK, and will
provide pre-determined clinical pathways to manage patients from pre-admission
evaluation, through surgery, post-operative care and post-discharge. The DTCs
at Nottingham and Plymouth should undertake 5 000 and 4 000 orthopaedic
procedures respectively per year, while the Maidstone facility will cover a wide
range of general surgical procedures for some 20 000 patients. The NHS
guarantees patient volumes.
Flemming said, "We have entered into two important moral agreements regarding
our staffing. First, we have undertaken not to poach medical and healthcare
professionals from the NHS"s existing hospitals. Second, we will not deplete
the pool of nursing professionals from our hospitals in South Africa. We will
give our specialised nurses the opportunity to work in the UK on a one-year
renewable contract matched by working back the equivalent time in South Africa.
The doctors will work in the UK for possibly four weeks, without having to
emigrate and forfeit their practices in South Africa. This will form an
important component of our nurse and doctor retention strategy."
"It is important that we protect our core business in South Africa, and should
the DTCs be awarded to us, the contracts for doctors and nurses will be
organised to cause minimum disruption," said Flemming.
Ends
Issued by Afrox Healthcare Limited
For information contact:
Corporate Communications
on 011 490 0554 or 082 891 5149
Date: 17/09/2003 04:01:06 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
