REG - Feedback PLC - Elective Recovery Fund funding mechanism

FeedbackAnnouncement

16/10/2024 07:00

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RNS Number : 3212I  Feedback PLC  16 October 2024

Feedback plc

 

Elective Recovery Fund funding mechanism

Feedback unlocks national NHS reimbursement mechanism and pens strategic
implementation partnership

 

Feedback plc ("Feedback" or the "Company"), the clinical infrastructure
specialist, announces that the Diagnostic Enhanced Advice and Guidance
diversions achieved through the Bleepa platform are now eligible for
reimbursement under the Elective Recovery Fund ("ERF") and that any Integrated
Care Board ("ICB") or hospital in England will, with immediate effect be able
to utilise this funding, by local agreement, to reimburse expenditure on the
Bleepa technology.

 

·      Step change in commercial prospects

·      Potential for funding within unlimited number of patients or
pathways

·      Existing relationships with ICBs and interest already expressed

·      Focus with implementation partner on converting near-term
customer contracts

 

The ERF is a revenue-based payment mechanism for additional activity delivered
by NHS organisations, such as ICBs or Trusts, as part of a national
incentivisation programme to reduce waitlists.

 

Management believes that access to ERF represents a step change in the
Company's commercial prospects.

 

Highly scalable opportunity

Diversions away from traditional outpatient appointments, such as those
achieved by Diagnostic Enhanced Advice and Guidance ("DEAG") pathways
facilitated by the Bleepa platform, are now eligible for a single payment of
£206 per patient ("diversion payment") from the ERF. There are no limitations
on the number of patients or pathways that are eligible under the funding
mechanism, the more activity delivered and diversions achieved the more an ICB
will be reimbursed. Based on the Company's existing programme at Queen
Victoria Hospital NHS Foundation Trust, the Company believes that diversion
away from outpatient appointments could be achieved in up to 90% of referrals
using the DEAG approach, which would result in a significant revenue uplift
for the participating ICB/Trust whilst simultaneously driving material
efficiencies in service delivery and most importantly benefits for their
patients, who would be spared multiple hospital attendances and experience an
accelerated journey with up to an estimated 63% reduction in wait times.

 

The diversion payment will be paid directly to the commissioning ICB which
will then allocate the funding to the provider Trust delivering the services.
Feedback will negotiate locally a share of this ERF payment (alongside its
implementation partner below). Based on expected patient volumes once fully
rolled out the Company believes that an indicative ICB contract could generate
over c. £2m per annum for Feedback under the ERF mechanism (assuming 66k
patients per annum and that ERF rolls forward on an un-capped basis annually).
ERF currently runs until 31(st) March 2025 but the Company believes, following
central conversations, that the funding may be renewed in subsequent financial
years to continue to support waitlist reduction.

 

Strategic partnership with implementation partner

In order to deliver this solution at scale rapidly, the Company has formed a
strategic partnership with Moorhouse Consulting ("Moorhouse") as its
implementation partner. Moorhouse are experienced practitioners of system
implementation and service redesign within the NHS, they have a number of ICB
customer connections and a large workforce who can support multiple
deployments simultaneously.

 

Feedback has already undertaken a roadshow of NHS ICBs, in collaboration with
Moorhouse and a number of ICBs have already expressed interest in the Bleepa
DEAG approach via the ERF. Now that confirmation of ERF reimbursement has been
received, the Company believes that it will soon be able to convert a number
of these ICBs into customer contracts.

 

Improved customer access

As noted above the Company believes that access to ERF represents a step
change in the Company's commercial prospects. Although customer desire for
Bleepa is well established, contracts have been difficult to unlock due to an
inability for sites to source funding for the product. This is in large part
because most technology funding is capital based rather than revenue based and
is more difficult to ringfence, often being redirected for other priority
spend such as to offset staff strikes or building repairs.

 

ERF is expected to enable the Company to align itself to service-based
reimbursement, taking a share of service delivery payments. Service-based
payments are typically revenue-based and ringfenced, they are also likely to
recur because they underpin core areas of service delivery or to be replaced
with a different mechanism that recognises the same elements of service
delivery providing greater funding security.

 

Dr Tom Oakley, CEO, Feedback plc said: "ERF is the funding stream that the
Company has been looking for in order to deliver our growth potential. It is a
funding mechanism that scales as we do. The more we deliver the more the
health system benefits and our revenue increases. Unlocking this reimbursement
would not have been possible without the substantive evidence that the Company
has generated over the last three years in the CDC space. We have been able to
demonstrate 3x the number of pathway diversions compared to standard advice
and guidance through our DEAG approach and this led the national teams to
include the DEAG approach in the ERF reimbursement mechanism. This process has
taken many months but we are now ready to go and have a number of ICBs already
warmed up.

 

"Moorhouse Consulting are ideal partners for this programme. We have to get to
scale quickly in order to drive revenue and this requires getting expert feet
on the ground. Working with a partner is faster than recruiting and training
internally and Moorhouse bring with them a great wealth of experience in care
transformation that would be hard to develop within the Company at the pace
required. Their network of ICB stakeholders will also help drive our customer
outreach and engagement.

 

"Together we look forward to tackling the NHS waitlists and bringing the
benefits of the DEAG approach to the whole of the NHS."

 

Hinesh Patel, Partner, Moorhouse Consulting said: "We are delighted to have
been selected by Feedback Medical to be their implementation partner. The
recent Lord Darzi report clearly set out the challenges the NHS is facing,
notably around growing waiting lists. It is digital solutions, such as
Feedback's, that enable the NHS to improve productivity, see patients sooner
and ultimately reduce waiting times for patients."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018.

 

--Ends--

Enquiries:

 

 Feedback plc                                                +44 (0) 20 3997 7634

 Tom Oakley, CEO                                             IR@fbk.com (mailto:IR@fbk.com)

 Anesh Patel, CFO

 Panmure Liberum Limited (NOMAD and Broker)                  +44 (0)20 7886 2500

 Emma Earl/Freddy Crossley/Mark Rogers (Corporate Finance)

 Rupert Dearden (Corporate Broking)

 Walbrook PR Ltd;                                            Tel: 020 7933 8780 or feedbackplc@walbrookpr.com
                                                             (mailto:feedbackplc@walbrookpr.com)
 Nick Rome/Joe Walker                                        07748 325 236 or 07407 020 470

 

 

About Feedback

 

Feedback plc helps clinical teams to make better decisions faster for
patients. We design products that enhance clinician access to patient data and
to their colleagues. Our unique approach centres around individual patient
episodes, into which we pull relevant clinical data from hospital systems and
around which we build remote clinical teams for collaboration. As a result, we
produce a digital infrastructure that makes patient data available to
clinicians in multiple settings, in a format that enables them to meaningfully
interact with it, providing flexibility to clinicians and free movement of
patients between provider settings - clinicians can practice from anywhere and
patients can attend any care provider for treatment, with greater connectivity
across organisations.

 

Our products Bleepa® and CareLocker® work together to deliver unparalleled
value to our customers. Bleepa® is our application layer and sits on top of
CareLocker® as our data layer. Bleepa® is a clinician facing platform that
displays clinical results from a patient's CareLocker® at a certified and
regulated quality, that is suitable for clinical use and enables dialogue on a
patient-by-patient basis with colleagues through a secure, auditable chat
interface that links back to the patient medical record. The CareLocker® data
storage model is built around the patient. Our vision is one where relevant
clinical data is always available to the patient as well as to any care
setting that they may attend - a federated data architecture with the patient
as the tenant.

 

The Company has a number of growth opportunities domestically and
internationally across a range of markets including the NHS, the veterinary
market and private healthcare providers and its highly scalable Software as a
Service ("SaaS")-based model is expected to provide increasing levels of
revenue visibility as the Company grows its customer base.

 

 

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