The integrated health system adopted in Wales has allowed its NHS to make rapid improvements in its performance on emergency admissions, its chief executive has claimed.

David Sissling (pictured) told delegates at the NHS Confederation conference that the rejection of a split between commissioners and suppliers had resulted in improvements in a challenging environment.

However, he added that similar improvements in England are unlikely due to its fragmented and market-orientated NHS.

“We don’t work in a market,” he said. “We work much more on an integrated basis.

“We have a Labour administration in Wales that has made a very firm decision to move away from the market. That’s partly a political stance, partly what’s right for Wales,” he added.

The integrated approach in Wales sees seven health boards across the country providing both primary and secondary health care to set regions.

Mr Sissling said this approach allows primary and secondary healthcare staff to co-operate to improve standards of patient care without having to worry about financial repercussions.

This resulted in a reduction of emergency admissions for COPD by 16.5% and diabetes by 14.6% in a year, with emergency readmissions falling even further, Mr Sissling added.

These reductions, the chief exec said, took place at the same time as a severe financial squeeze on the Welsh NHS which saw its budget shrink in real terms.

New research shows that SME growth provides the best prospect for economic recovery in the UK. But, as private equity firm ECI notes, finding the cash to reach out to global partners and markets can be a critical hurdle.

With continued pressure on governments across the Western world to reduce their expenditure, together with sustained macro-economic uncertainty and a tightening of bank funding, times are not necessarily easy for the average healthcare company – which often relies on the public purse for reimbursement and debt funding for growth. One might therefore expect the short-term outlook for growth to be somewhat muted, despite the backdrop of positive longer-term demographic drivers of demand.

Hence it is interesting that a recent survey of UK SME businesses by ECI Partners, a UK-based midmarket private equity firm, has found executives to be generally positive about growth prospects over the next 12 months, with 74% of respondents anticipating headcount growth and 60% expecting double-digit turnover growth.

The results met with a warm response from the Government, with Mark Prisk, Minister of State for Business and Enterprise, saying: “It’s good news that despite a tough few months, nearly three-quarters of the SMEs surveyed by ECI are looking to recruit over the next year and half expect to see substantial profit growth in that period. Up and down the country, it is Britain’s SMEs that are driving our economic recovery.”

Reaching out

This year, the survey conducted each summer by ECI Partners gained responses from a total of 246 chief executives from UK growth companies from a range of sectors with turnover between £10m and £200m. The results paint a positive picture against the gloomy economic backdrop of the Eurozone crisis and sluggish UK economy, and suggest that there remains growth potential amongst SME businesses – which account for around a third of UK private sector employment.

Steve Tudge, a Managing Director of ECI, commented: “Despite the barriers to growth, which are principally cited as a weaker macro-environment and funding constraints, we continue to be optimistic about the prospects for good mid-market companies.”

Executives see the key growth drivers to be increasing international sales – with Europe and the USA remaining the dominant international markets, though India and China are becoming more important – and organic growth through investment in sales and marketing and new product development. Over 40% of companies are also planning to increase their use of overseas suppliers to improve their margins.

Internal cash flows are viewed as the most likely source of funding for this growth, though around half of respondents say they are likely to seek bank debt within the next 12 months (despite continued complaints about its cost and due diligence requirements) and around 40% are also likely to look at private equity backing. Fewer than 10% of companies see the public markets as accessible, perhaps reflecting the recent volatility and liquidity issues associated with the AIM market.

Healthcare respondents are less bullish about high growth than their peers in other sectors, and are noticeably less positive about growth than they were last year. This no doubt reflects, in part, the political uncertainty surrounding the current UK healthcare reforms and the public sector spending constraints that are impacting on the health and social care sectors.

Despite this, companies remain more confident of raising growth financing – and of raising it from private equity firms, with over 50% saying that was a likely consideration over the next year.

Financing growth

What does all this mean for SME healthcare businesses in the UK? The sector certainly faces challenges in responding to Government spending cuts, which are tending to put pressure on margins if not always on volumes.

However, opportunities for growth remain amidst these challenges, particularly for companies who are able and willing to venture beyond the UK in order to seek new customers and cheaper suppliers.

Of course, this internationalisation can put a strain on smaller businesses, which may lack the scale to fully support an international infrastructure. Private equity groups with experience and expertise in this process can potentially offer support to management teams in this position – whether by making introductions, sharing best practice or simply financing the required infrastructure.

There are significant sums of capital available for investment from the UK private equity industry, and there remains an appetite to invest in market-leading healthcare businesses. Thus private equity should be considered seriously as an option by management teams in the healthcare industry who are looking to fund growth to help their companies succeed in the current economic environment.

ECI is a private equity group that has been investing in mid-market growth businesses for over 35 years. It invests across sectors, with a focus on UK and Irish companies. Healthcare companies in its current portfolio include a primary care provider (Harmoni), assisted living specialists (Premier Bathrooms, DLP) and medical software companies (Clinisys, Ascribe).

A new technology for point of care diagnosis of carpal tunnel syndrome (CTS) is about to be become available to GPs through leading UK healthcare distributor Williams Medical Supplies.

Williams has an exclusive agreement with Finnish company Mediracer to make this groundbreaking diagnostic tool available to UK primary care.

CTS, often linked to typing or driving, is a pressure on the median nerve in the wrist that can lead to numbness, tingling, weakness or muscle damage in the hand.

The use of Mediracer’s NCS test is claimed to reduce the CTS screening cost per patient from £270 in secondary care to £67 in primary care.

The Mediracer NCS technology identifies nerve entrapments in the hand using disposable surface electrodes. The results can be used to diagnose CTS and grade its severity.

Steve Dunn, CEO of Williams Medical Supplies, said: “We have a strong presence in the primary care market, but we want to strengthen our position to help suppliers and manufacturers – like Mediracer – to win more business.

“By offering exclusivity on key products to Williams, these companies will benefit from our unparalleled market penetration and business support.”

“CTS is a high-incidence condition and our tool provides consultant interpretation within minutes, allowing GPs to do work which is normally confined to hospitals and which saves the NHS money,” commented Pasi Karsikas, Mediracer’s Sales Director.

“We chose to partner with Williams for a number of reasons – they are the UK’s leading GP supplier, with excellent customer support and unrivalled market penetration – so we are looking forward to a bright future in this marketplace.”

Based in Gwent, Williams Medical Supplies is the UK’s leading provider of medical supplies and services, used by around 9,000 of the 10,500 GP surgeries.

John Wilkinson (pictured), Chief Executive of Eucomed, has received a special Career award from the International Vascular and Endovascular Course (IVEC) in Milan.

The award recognises the medtech industry’s contribution to the development of vascular and endovascular surgery.

IVEC Chairman Giorgio Biasi presented the award to John Wilkinson to “honour the excellence of a distinguished scientist and eminent colleague who has contributed enormously in promoting, divulging and spreading culture, development and achievements in the field of vascular and endovascular techniques.”

Following the award presentation, Wilkinson gave the Edmondo Malan Lecture on ‘Development and Achievements in Endovascular Procedures as a Result of a Continuous and Ingenious Co-operation between Physicians and Industry’.

He discussed the long history of collaborative working between clinicians and industry over 200 years, with ideas from doctors and surgeons being developed by companies, culminating in such revolutionary devices as the drug-eluting stent.

Wilkinson also emphasised the need for innovation to be built on a platform of ethical interaction and transparency, and for industry to support education and training in the delivery of new therapies.

Finally, he drew attention to the demographic and economic challenges facing Europe’s health systems, and called for a collaborative approach between all stakeholders to support innovative solutions to these urgent problems.

Eucomed is the leading European medical technology industry association. It represents 4,500 designers, manufacturers and suppliers of medical technologies.

European medtech industry association Eucomed will launch a conference pre-vetting system in early 2012 to assess all third-party educational conferences and congresses sponsored by its members.

The new system is the first of its kind in the healthcare industry, because its assessments will be binding.

The independent Eucomed Compliance Panel will assess educational events for compliance with the association’s Code of Ethical Business Practice in relation to such factors as scientific content, location and venue.

Each outcome will be made publicly available via a dedicated website, and relevant stakeholders will be notified.

The Eucomed Code allows member companies to sponsor third-party educational events such as medical congresses, seminars and training courses, subject to restrictions. Until now, members had to establish their compliance independently. The new system will apply a uniform compliance determination process to all Eucomed members.

“The conference pre-vetting system is a unique initiative in the healthcare sector,” said John McLoughlin, Chairman of the Compliance Panel. “It will be supervised solely by our Panel, which is a completely independent body. Eucomed members are required to follow the assessments.

“If a conference receives a negative assessment, Eucomed members may not sponsor either the conference or individual healthcare professionals who wish to attend the conference.”

John Wilkinson, Eucomed’s Chief Executive, added that the new system “is not only necessary for our members in their day-to-day activities but is also key to increasing the consistency and transparency of industry behaviour.”

Eucomed intends to give key stakeholders an opportunity to comment on the assessment criteria.

The pre-vetting system will begin as a pilot and be reviewed 6–12 months after its launch. It will be the sole responsibility of the Compliance Panel.

Eucomed represents 22,500 designers, manufacturers and suppliers of medical technologies in Europe.