Serco's joint venture to become UK's largest provider of pathology services
Date: 21 Sep 2010
Serco Group plc (Serco), the international service company, is pleased to announce that it is expanding and strengthening its UK pathology business with the addition of a leading NHS foundation trust to its joint venture to form the UK's largest single provider of pathology services.
Under the agreement, King's College Hospital NHS Foundation Trust (King's) has joined GSTS Pathology, the joint venture between Guy's & St Thomas' NHS Foundation Trust (Guy's and St Thomas') and Serco GSTS Pathology has been awarded a ten-year contract valued at around £300m, starting October 2010, as the principal provider of pathology for King's. It is anticipated that the agreement will result in incremental revenue to Serco over the term of the King's contract of approximately £110m.
The new joint venture will conduct over 10 million individual tests per year for customers from within the NHS and wider health sector. It is already the prime pathology provider for Guy's and St Thomas' and Bedford Hospital NHS Trust. King's has one of the largest integrated automated laboratories in Europe and will further enhance the range of tests available to customer of GSTS Pathology.
GSTS has already transformed the way pathology services are provided by focusing on innovation, quality and service. It has set new standards in patient care and substantially improved efficiency, for example by more than halving cervical screening times and introducing its own swine flu test in record time. These achievements have been made possible by combining Serco's capabilities in transformation, service integration and change management with the NHS's clinical and scientific excellence.
Christopher Hyman, Chief Executive of Serco Group, said King's College Hospital and Guy's and St Thomas' both have a deserved reputation as leading NHS Foundation Trusts and teaching hospitals. The addition of King's to our pathology partnership with Guy's and St Thomas' creates the UK's leading single pathology provider. It positions us well for further growth in a growing market worth some £2.5bn per annum in the UK. It further underlines our desire to work in partnership with the NHS to transform services for the benefit of patients and clinicians alike.
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