Dr Foster Intelligence, a provider of information, analysis and communications to health and social care organisations, will be marketed for sale, the Department of Health and Dr Foster Holdings LLP have announced today.
The announcement follows a review of strategic options for the business, announced in August 2010. Dr Foster Intelligence is a commercial company, owned by shareholders. Currently, the Department of Health owns a 48.75 per cent stake in Dr Foster Intelligence, with 51.25 per cent held by Dr Foster Holdings LLP.
The decision to market the business for sale comes after the Government's Spending Review framework in June which urged Departments to focus on essential activities, maximise value from assets that do not need be held in the public sector, and ensure value for money for the taxpayer.
The White Paper Equity and Excellence: Liberating the NHS also committed to increasing the availability of robust and independent healthcare information for patients to help drive better care, improved outcomes and reduced costs.
The Department of Health and Dr Foster Holdings LLP will sell all shares in Dr Foster Intelligence, making it completely independent of Government. Selling all the shares together rather than individually will make it more attractive to potential buyers and provide the current shareholders with the best value for their investment.
Health Minister Simon Burns said:
"Organisations should be free to innovate and present data, and the Government should ensure that it is maximising the value of its assets.
"As our reforms set out, more comprehensive and transparent information, including patients' own ratings, is vital for true choice - without it, patients and service users cannot make informed choices and take control of their care."
Dr Foster Intelligence Chief Executive, Tom Moloney said:
"All parties believe that an independent Dr Foster Intelligence will be best placed to help its customers and stakeholders implement the information revolution called for in health services, and we will work together in the coming months to ensure an effective and robust sale process."
Dr Foster Intelligence was established in 2006 as a joint venture between the NHS Information Centre and Dr Foster Holdings LLP. The NHS Information Centre transferred its shareholding to the Department of Health on 9 July 2010.
Notes to editors
1. Known for its annual 'Hospital Guide', bespoke analytics, research and social marketing activity, Dr Foster Intelligence provides NHS organisations with information designed to help them improve patient care and gain better value for money.
2. For the year ending 31 December 2009, Dr Foster Intelligence generated revenues of £22.1 million. On 1 April 2010, Dr Foster Intelligence's holding company acquired Dr Foster Research Limited (DFR) in a share-for-share exchange. For the year ending 31 December 2009, DFR generated revenues of £1.9 million.
3. The acquisition of DFR is expected to give the enlarged group access to a number of growth opportunities outside of the NHS, including local government, the independent sector, the pharmaceutical industry and internationally.
4. The Department of Health, Dr Foster Holdings LLP and Dr Foster Intelligence appointed KPMG to support the strategic review of Dr Foster Intelligence. Parties that are interested in the sale should contact Andrew Nicholson at KPMG at: email@example.com
5. The White Paper Equity and Excellence: Liberating the NHS, was published on 12 July 2010 and set out the Government's strategy for the NHS.http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_117353
6. For more information, please contact the Department of Health press office on 020 7210 5221.
7. For more details on Dr Foster Intelligence or its products please contactAndrew.Kliman@drfoster.co.uk or call 0207 332 8837.