The contract announcement is a combination of both renewal and...

The contract announcement is a combination of both renewal and extension.

My understanding is that the previous contract was only for the use of Patientrack at the two main hospitals: Victoria Hospital in Kirkcaldy and Queen Margaret Hospital in Dunfermline.

The new contract is renewing the continual use of Patientrack for those two mains hospitals plus rolling out Patientrack for:

• Adamson Hospital in Cupar
• Cameron Hospital in Windygates
• Glenrothes Hospital
• Lynebank Hospital in Dunfermline
• Randolph Wemyss Memorial Hospital in Buckhaven
• St Andrews Community Hospital
• Stratheden Hospital in Cupar
• Whyteman's Brae Hospital in Kirkcaldy

Also, Alcidion's current footprint in Scotland is much smaller than say, England. Therefore, I suspect there is an element of strategic pricing that is being applied for broader and longer-term strategic benefits (for example, expanding geographical presence and increasing cross-selling opportunities).

Admittedly, the value of the contract is not big but the upfront Patientrack business has never really been a high-margin. The profitability impact will flow through when those contracts are renewed as the cogs will be much lower. Patientrack is also, in my view, a cash cow business segment to fund the higher margin business segment of Miya etc.

Below is an extract from the 2017-18 annual report from NHS Fife Estate which may be of interest.

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Managing complex care needs

The approach to caring for patients in Fife with complex health conditions is changing as we target individuals to help improve health outcomes and reduce emergency hospital admissions.

A new assessment tool is being used by GP practices to assist them in identifying vulnerable patients who are predicted to have deteriorating health needs in the following year based on a range of risk scores.

By identifying people earlier and looking at the risk factors, such as the number of long term conditions they have and the number of prior emergency admissions, we can intervene earlier.

Intervention is led by a case manager who will assess the patient’s ongoing needs. An anticipatory care plan is then developed in partnership with patients and their families with a strong focus on “what matters to you”.

Resulting changes in the approach to caring for patients with chronic obstructive pulmonary disease has reduced the average length of stay from 3.8 days to 3 days in just three months. From a sample of patients 60% saw a reduction in unplanned admissions to hospital.