Tribal Group Plc · LSE:TRB
Tribal — Investor Presentation (February 2006)
21 slides from Tribal's investor presentation, Feb 14, 2006
Slide 1: Mercury Health
Mercury Health Presentation: 14 February 2006 Peter Martin - Chief Executive
Slide 2: Contents
Contents A. Market background B. Progress to date C. Future opportunities
Slide 3: A. Market background
Mercury Health A. Market background
Slide 4: Market reform
Market reform Payment By Results: PBR TRANSACTIONAL REFORMS Choose and Book BETTER CARE Foundation Trusts New Primary Care Trusts Independent Sector (ISTCs) Practice Based Commissioning BETTER PATIENT EXPERIENCE Voluntary/mutual organisations DEMAND SIDE REFORMS BETTER VALUE FOR MONEY SUPPLY SIDE RE
Slide 5: Market drivers (ISTCs)
Market drivers (ISTCs) Principal driver is choice / plurality of provision: Waiting lists / targets (18 weeks from referral to treatment by December 2008) Quality Efficiency Innovation Clinical Operational Implementation Additionality Infrastructure Staffing
Slide 6: Market drivers (primary care)
Market drivers (primary care) Again, choice is a major driver plurality of providers Services moving from acute hospitals to community / primary care PCT reform likely to lead to divestiture of provider functions Reform of GP services Ageing GP population Under-serviced areas Fragmente
Slide 7: Market opportunities
Market opportunities Opportunity Potential size Procurement status Phase 2 elective surgery ~£2.5bn. (over 5 years) Current Extended choice network £500mn. - £1bn. (over 5 years) Current Phase 2 diagnostics ~£1bn. (over 5 years) Current Primary care pilots £25 - 40mn. (over 5 years) Current Primary
Slide 8: B. Progress to date
Mercury Health B. Progress to date
Slide 9: Introduction
Introduction Mercury Health is 100 per cent. owned by Tribal Group plc Principal focus is delivering healthcare services to NHS patients Three business streams: Elective surgery Diagnostics Primary care Key clinical partnerships Health Inventures (US) - Clinical commissioning Hospi
Slide 10: Management team
Management team Executive team Chief Executive Peter Martin Tribal main board director Strategy Director Mark Smith Former NHS trust chief executive Finance Director Steve Breach Former Ernst & Young director Medical Director Patrick Beasley Former foundation trust medical director Clinical Services
Slide 11: Elective surgery & diagnostics
Elective surgery & diagnostics Centre Activity Open Annual revenue guarantee Wycombe Diagnostic imaging centre August 2005 £2.0mn. Medway Daycase surgery October 2005 £5.0mn. Portsmouth Daycase surgery, diagnostics December 2005 £13.0mn. and MIU / walk-in centre Haywards Heath Elective orthopaedic c
Slide 12: Portsmouth
Portsmouth Commissioning Facility built, equipped and staffed in less than 12 months from contract close Opened on time and to budget Total staff of 84 Surgery Four operating theatres; minimum capacity of 6,800 procedures per annum Hungarian and UK surgeons Diagnostics X-ray and ul
Slide 13: Primary care
Primary care Mercury Health Primary Care (“MHPC”) established in late 2005 Initial management team recruited Affiliation with Chilvers McCrea Run nearly 20 GP practices Preferred bidder on new walk-in centre Collaborating with MHPC on primary care developments Affiliation with Frome Me
Slide 14: Financial summary
Financial summary Implementation and construction costs To date, costs incurred are in line with expectations Forecast is to remain within budget through to completion Revenue (assuming no new business wins) Year end 31 March 2006 2007 2008 Revenue (£000) 13,500* 34,000 39,000 * Includes int
Slide 15: C. Future opportunities
Mercury Health C. Future opportunities
Slide 16: Phase 2 elective surgery
Phase 2 elective surgery ~£2.5bn. programme covering 24 schemes Broad range of services but emphasis on orthopaedics and general surgery Programme being procured in a number of tranches Mercury Health shortlisted on two schemes in the first tranche Further tranches due over the next 3-4 mo
Slide 17: Phase 2 diagnostics
Phase 2 diagnostics ~£1bn. programme covering eight schemes Diagnostic imaging, endoscopy and physiological measurements Mercury Health shortlisted on three regional contracts Partnering with a Foundation Trust in each region First preferred bidders expected summer 2006 Early service del
Slide 18: Phase 2 - contract issues
Phase 2 - contract issues Same contractual structure for elective surgery and diagnostics Five year contracts with an option for a two year extension Providers required to take (some) demand risk Additionality relaxed but remains for ‘shortage professions’ Residual value payments will unde
Slide 19: Phase 2 - funding
Phase 2 - funding Scale of funding will be determined by the level of contractual success Four principal requirements for funding anticipated: Construction – non-recourse senior debt supported by residual values Equipment – principally, operating leases Implementation – Tribal equity utili
Slide 20: Primary care
Primary care Shortlisted on six pilot schemes GP practices, walk-in centres, primary care services to care homes Preferred bidders expected summer 2006 Other opportunities Second wave schemes (late 2006?) Local opportunities GP practices Establish primary care services at Mercury Hea
Slide 21: Conclusion
Conclusion Mercury Health established as a significant healthcare delivery business Strong reputation: First visit by the Secretary of State to an ISTC Partners include leading national and international healthcare organisations Prominent representation on senior industry bodies Focus wi