Organisations in the healthcare sector, including the NHS, are increasingly reliant on technology to ensure the smooth-running of day-to-day business. It’s important that costs are reduced wherever possible, including within technology and IT operations, to help alleviate the financial pressure faced by businesses in this sector.
West Middlesex University Hospital Trust was acquired by Chelsea and Westminster Hospital NHS Foundation Trust in 2015. IT service provider SPHERE, which is co-owned by Chelsea and Westminster, will be incorporating the IT infrastructure of West Middlesex into their existing IT service provision. Intuitus was approached to provide M&A IT due diligence on West Middlesex in order to identify potential synergies and key risks ahead of the integration by SPHERE.
SPHERE (Systems Powering Healthcare Ltd) is an IT service provider delivering IT service management and shared IT infrastructure services to the healthcare sector.
The company is jointly and wholly owned by Chelsea and Westminster Hospital and the Royal Marsden NHS Foundation Trusts - SPHERE represents a collaboration and pooling of resources between the Trusts to deliver improved IT services to its members.
The management team at SPHERE required full visibility of the current status of the IT services currently in place at West Middlesex, including data centre management, network and communications, computing infrastructure and storage, end-user computing, IT service management, and IT security. This would allow management to plan for the integration of the IT infrastructure at West Middlesex into the existing service offering provided by SPHERE.
The recent transition and merger of the two Trusts, coupled with SPHERE’s planned acquisition of the IT infrastructure at West Middlesex, meant that the merger of the two IT teams had to be handled with sensitivity. This had to be taken into account by any third-party consultant brought in.
How Intuitus helped
Intuitus was approached to undertake M&A due diligence on the IT infrastructure and associated service contracts and service provisions at West Middlesex, and advise on how these services align with the service proposition provided by SPHERE. The Intuitus team included Alan Lorimer, who has 20 years’ experience in IT, including many years reviewing the processes and operations of managed service companies in order to provide investment advice.
“Intuitus brought a wealth of experience, wisdom and knowledge to the engagement,” says Renier Botha, Managing Director at SPHERE. “It was a sensitive situation and we needed to get an expert, unbiased, impartial opinion. The Intuitus team was respected by everyone involved because they had been in similar situations many times before and knew exactly where to look and which questions to ask.”
The result was a comprehensive report that clearly outlined what actions were required to ensure the successful integration of the West Middlesex IT infrastructure. This report was then converted into a project initiation document, which acted as a foundation for the entire project. SPHERE was also able to use the report findings to compile a full remediation project scope with costings, which was presented to the senior management team. This clearly outlined the key risks and remediation required to successfully onboard the new infrastructure environment.
Results, Return on Investment and Future Plans
In the short term, SPHERE is focusing on delivering the IT services as they are outlined in the SLAs, and meeting the service expectations of the West Middlesex staff.
The major strategic benefit of the incorporation of the West Middlesex infrastructure in the longer term is in the economies of scale, as Renier Botha points out: “With the onboarding of West Middlesex, the scale of the service delivered by SPHERE has increased by 27%. As a result, we’ve been able to reduce the cost per user by 12%. Furthermore, the cost of running the service is 24% lower than what it would have cost the trusts individually were they to run the IT service without SPHERE. If SPHERE can successfully identify additional trusts to work with then there will be an opportunity to further drive down the total cost of providing a shared service.”
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