Innovative funding model addresses lack of new capital within the NHS

CCube Solutions and Genmed launch managed service contract to help trusts meet the Government’s paperless strategy

  • Medical records scanning and CCube EDMS now available as a managed service
  • New service is VAT recoverable, resulting in 20% saving for organisations

The funding pressures in the NHS are widely reported, with constrained resources meaning the health system is buckling under the strain of trying to meet demand, yet at the same time maintaining standards and services.

The demand for electronic document management systems is there, but not the method, given it has been a struggle for finance directors to get budget

A new type of funding model – announced by CCube Solutions and Genmed – will help address the current lack of additional capital available within the NHS to support key projects like electronic document management and scanning so that trusts and health boards are able to meet the Government’s 2023 ‘paperless NHS’ deadline.

CCube Solutions is collaborating with Genmed to offer a cost-effective bespoke managed service that will allow them to easily fund the transformation from paper to digital medical records.

Robin Modak, Genmed’s chief executive officer, said: “The NHS is experiencing a capital famine at the moment.

“The huge upfront capital costs of software systems and back scanning make it very difficult to introduce the new services organisations have been instructed to by the Department of Health.

“Our managed service model provides a practical, straightforward, revenue-based way to solve the paper problem as it spreads the costs out and means it’s treated as an operational, not a capital, expenditure.”

Genmed and CCube Solutions will work in partnership to create a bespoke solution, which will include CCube’s electronic document management software, project management, IT hardware, support, maintenance, and, crucially, all the legacy records back scanning, irrespective of whether this is outsourced to a third party or processed in-house.

The cost to trusts will then be packaged by Genmed using an umbrella contract, with the service billed monthly or quarterly.

Our managed service model provides a practical, straightforward, revenue-based way to solve the paper problem as it spreads the costs out and means it’s treated as an operational, not a capital, expenditure

The Genmed managed service is HMRC compliant for VAT recovery and, importantly, is off the balance sheet, which is critically important for organisations with no CRL headroom.

Vijay Magon, CCube Solutions’ managing director, said: “The demand for electronic document management systems is there, but not the method, given it has been a struggle for finance directors to get budget.

“All healthcare organisations know they need to get rid of paper and transition quickly to digital delivery.

“With Genmed, we’ll be targeting those who have yet to do so by providing an efficient and risk-free way to, not only buy our software, but all the associated components required to close costly medical libraries.”

The introduction of digital medical records is well proven and accepted to enhance clinical effectiveness, reduce operational costs, ensure compliance with CQC guidance about records and data management, and, ultimately, to boost patient safety and care.

Modak said: “It’s important to understand that Genmed is not a managed equipment provider or a finance house. Our remit is much wider.

“We support trusts and health boards through carefully-designed managed service contracts. We’re more consultative, working with them to ascertain what clinical facilities or technology they need, their workload issues, finding and selecting suppliers, driving product costs down, putting together the finance, managing the contracts, paying subcontractors and taking all the risk upfront ourselves. We’re unique in the manner we provide managed services in the market as a result.”

The huge upfront capital costs of software systems and back scanning make it very difficult to introduce the new services organisations have been instructed to by the Department of Health

Genmed helps NHS organisations to increase their efficiencies and streamline practices by removing the administration overhead and burden of managing suppliers, and dealing with orders and invoices, in addition to contract and administrative management.

Importantly, it is vendor neutral, such that if a trust wants particular equipment from a variety of companies, this can easily be incorporated under the managed service contract, with clinicians not forced to have products they don't want.

Genmed’s actual pricing for its managed service contracts is completely transparent. Modak explains: “We charge a 6% fee on cash flows. So, if a contract is £100,000 per quarter, the customer will be billed £106,000 plus VAT. It’s simple and straightforward, with the whole approach tax efficient, making our approach extremely compelling.”

Not only can trusts now spread out the cost of shifting to digital records, but under HM Treasury directive rules for contracted out services, public-sector organisations, including the NHS, can also recover the VAT, which means a 20% refund by HMRC on Genmed managed services – money which can then be used for frontline activities.

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