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The Case of the Out of Hospital Gambling Chips

Are Out-of-Hospital services across England just shareholders’ gambling chips?

Sustainability and Transformation Partnerships’ Care Closer to Home schemes have fuelled a £10m corporate purchase of a doctorpreneurs’ out-of- hours/urgent care company that provides services to over nine million patients across the UK.

 

Totally Ltd intends to use this purchase to expand and corner “a massive market opportunity” in out-of-hospital services.

Totally_Plc_Logo_small

“an important player in the UK healthcare system,

 

with a growing range of healthcare services to offer improved care

 

for those whose conditions can be better treated at home, locally, or in the community.”

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occupational physiotherapy

for NHS, prisons & police force

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community based dermatology services & GP referral management services

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physiotherapy to private markets

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clinical health coaching via B2B model to the NHS and the private sector

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GP out-of-hours, integrated urgent care centres and NHS 111

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direct-to-consumer clinical coaching service for people with long-term health conditions

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The bottom line is the reality. Totally plc:    “has recently raised new equity capital through the markets and has an impressive shareholder base.”

 

The shareholders are large institutions. Totally’s share price shot up in October 2017, and then plummeted. This whizz bang seems to have more or less coincided with the company’s General Meeting on Oct 23rd for shareholders to vote on the acquisition of Vocare Ltd. It has risen sharply since the beginning of January 2018 – although not to the level before the October 2017 spike and plummet.

Our NHS -  a gambling chip for sellers and buyers of company shares

READ VOCARE

ACQUISITION DOC

The 128 page document (!) that gave notice of the shareholders’ General Meeting to vote on the acqiusition of Vocare Ltd warned,

 

   “The Ordinary Shares should be regarded as a highly speculative investment and an investment in Ordinary Shares should only be made by those with the necessary expertise to fully evaluate the investment.”

Watch Bob Holt on IGTV the only broadcast channel providing up-to-the-minute trading ideas”

THE ACQUISITION

Corporate rides on the STP gravy train

In March 2017, Totally plc announced a ‘sustainability partner’ agreement for a  £90,000 six-month contract with the Blackburn with Darwen Clinical Commissioning Group, as the CCG reviewed its long-term arrangements for community dermatology services. The contract was through Totally plc’s subsidiary About Health Ltd , a community-based dermatology services company and provider of GP Referral Management Services.

 

Wendy Lawrence, CEO of Totally plc, said:    “The continued success of About Health since we acquired the business as part of our buy-and-build strategy is a clear demonstration that it’s regarded to be a market leader in community based dermatology services.  We look forward to updating the market further on the progress being made across the Group as our subsidiaries target new contracts with the NHS, providing care to patients in local communities to prevent avoidable hospital admissions.”

 

Lo and behold: Cornwall Sustainability and Transformation Plan’s Public Private Partnership for a £48m 5 year contract with Vocare Ltd for the GP out-of- hours service and NHS111, with a start date of 1 December 2017.

 

This is in line with the government’s 2015 Spending Review settlement for the NHS which committed the government to encouraging long-term partnerships with the private sector in a number of key areas including:

 

development of new models of care incl. Accountable Care Organisations

the upgrade of diagnostic capabilities

hospital groups and acute care collaborations

 

Sustainability and Transformation Plans – with their “overall trend” of moving “less acute or critical” hospital services into the community  (as Totally’s Chair informed shareholders), have made Vocare Ltd an attractive speculative acquisition for Totally Ltd.

 

Vocare operates in Somerset, Devon, Staffordshire, SW London, Yorkshire, the North East and Wolverhampton, and since 1 December 2017, in Cornwall – where NHS and social care services are shortly due to become an Accountable Care System,  designated by NHS England as a “fast follower” to the 8 areas the quango has already fast-tracked to become Accountable Care Organisations.

 

To cut costs in line with a projected £246m funding shortfall in 2020/21, the Cornwall Sustainability and Transformation Plan says:  “radical change is needed in the way we deliver our services across the entire health and care system, as well as the way people use them.”

 

As part of this “radical change”, community hospitals will be replaced by “Integrated Community Hubs” (p42) “co-located with Urgent Care Centres to ensure workforce and financial viability, working in partnership with the acute trusts.” (p42). This is to cut £24m costs.

 

Reconfiguring the NHS 111 and out of hours GP services, through the new Public Private Partnership, is  “an essential component of a wider urgent care pathway which is aligned, efficient and appropriately resourced.”

 

More public

private partnerships.

This requires the sell-off of “surplus” NHS estate and the development of “innovative ownership” models through the Cornwall Sustainability and Transformation Plan estates strategy – part of the One Public Estate scheme.

ONE PUBLIC ESTATE

WHERE IS VOCARE?

Somerset

Devon

Staffordshire

SW London

Yorkshire

North East

Wolverhampton

Cornwall

VOCARE MAP

CAN WE BELIEVE THEM?

 

In the face of mounting public challenges to the creation of Accountable Care Organisations and Systems  the NHS England quango announced recently that it has put plans for the award of ACO contracts on hold until it has consulted on them at some unspecified date.

NHSE CONSULTATION?

28th January 2018

Vocare Ltd, which has numerous contracts across England for NHS 111 and out–of-hours and urgent care, has recently been bought by Totally plc, a private healthcare company whose current plan is:

 

“to build and develop a high quality diversified out-of-hospital UK healthcare services group… from diagnosis through to discharge.”

 

Commenting on the purchase, Totally’s Chairman Bob Holt OBE said that the NHS represents a massive market opportunity and that the purchase of Vocare Ltd had boosted their NHS contracts income from £10m/year to £100m/year.

 

Before buying Vocare Ltd, the Chair wrote to shareholders that:  “[T]he Acquisition allows the Group to obtain a foothold in the urgent care sector in the UK with Vocare being one of the leading privately owned providers of integrated urgent care services in the UK.”  

 

He explained:     “[T]here has been an overall trend for the NHS and local authorities to seek to move the less acute or critical components of patient care from larger hospitals into smaller NHS premises… This process often takes place via outsourcing to private sector service providers such as Vocare. The Directors believe therefore that there is a significant opportunity for Totally to build and develop a high quality diversified out-of-hospital UK healthcare services group.”

 

Totally’s “business” currently consists of those companies you see on the right of the page.

 

As well as being listed on the AIM market of the London Stock Exchange,

the company says:  “Totally promotes health and wellbeing services by driving innovation and providing a range of responsive and preventative healthcare services in community settings, GP surgeries, prisons, workplaces and patients’ homes, from pre-diagnosis to discharge.”

The revolving door - NHS, charities,  health, social care and housing

Totally’s Directors include ex-NHS managers as well as people formerly or currently employed by Care UK, BUPA, EY, Mercury Health Ltd and large NHS and disability charities.

 

Wendy Lawrence, CEO of Totally plc, worked for the NHS as Chief Executive of three large Primary Care Trusts.  On behalf of the Strategic Health Authority she established new commissioning models for ambulance services and NHS Direct, and worked on Reforms of Urgent Care Provision and Taking Healthcare to the Patient. How convenient for Totally plc to have NHS insider knowledge of the sectors it plans to buy into. She also previously worked for BUPA and ran  her own company,  “working closely with numerous NHS and social care organisations across England, Wales and Scotland supporting delivery of many complex change agendas.”

 

The Chairman of the Board, Robert Holt, OBE, is also Chairman of Mears Group PLC, “a support services group focused on social housing and domiciliary care services”.

 

“Bob” is described as:   “instrumental in Mears’ growth and oversaw the Company’s flotation on AIM and subsequent listing on the Main Market of the London Stock Exchange.”

 

Interviewed on IGTV – Mr Holt said:    “The acquisition of Vocare was very transformational for us. It provides a significant platform for future growth…It’s taken us from £10m [NHS] revenues to £100m revenues…  This is a large market. The NHS currently outsources £20bn of services. Clearly we’d like to take quite a bit more of that.”

 

WATCH THE VIDEO BELOW

 

Totally plc’s non-executive directors include one Tony Bourne, who is a non-executive director of Barchester, “one of the UK’s largest operators of residential care homes”

and Spire Healthcare Group plc, “one of the largest private healthcare groups in the UK, a London Stock Exchange-listed company and a constituent of the FTSE 250 Index” as well as Chairman of CW+ (formerly Chelsea and Westminster Health Charity), “one of the largest NHS charities”.  Clearly a man for whom size matters. He was once Chief Executive of the British Medical Association, a big cheese investment banker and a non-executive director of Southern Housing Group and the cerebal palsy charity, Scope.

 

This will be where they get their spiel about how their business is helping the NHS deal with all the pressures on it, which Bob Holt slipped in with a smirk more than once in his IGTV interview.