REG - Spire Healthcare Grp - Acquisition of The Doctors Clinic Group Limited

Spire HealthcareAnnouncement

19/12/2022 07:00

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RNS Number : 0739K  Spire Healthcare Group PLC  19 December 2022

Spire Healthcare Group plc

 

('Spire Healthcare', 'Spire', 'the Company' or 'the Group')

 

Acquisition of The Doctors Clinic Group Limited

 

 

19 December 2022

 

Spire Healthcare Group plc (LSE: SPI), a leading UK independent hospital
group, is pleased to announce the acquisition of The Doctors Clinic Group, an
integrated provider of occupational health and private GP services, for a
total consideration of £12m.

 

The Doctors Clinic Group provides occupational health services to more than
700 corporate clients and operates 22 active private GP clinics. It is
expected to deliver turnover of £11m in 2022 and currently has a total
workforce of 279, of which 65% are clinicians.

 

The acquisition of The Doctors Clinic Group furthers Spire Healthcare's
strategy to expand its proposition to address the increased demand for
healthcare in the UK, supporting the delivery of a broader range of healthcare
services which complement the existing services offered by the Group's
hospitals. This is a modest bolt-on investment in a business that, under
Spire's ownership, is expected to break even in 2023 and become profitable in
2024.

 

Occupational health is an attractive market in the UK with demand growing by
7% per year over the last five years, as employers seek to provide better
support and benefits for their employees. The Doctors Clinic Group's
occupational health business provides a range of services including absence
management, new starter and back-to-work assessments, and health surveillance.
The Doctors Clinic Group's services to corporates also extend to corporate
wellness services such as screening, vaccinations and workshops. Spire sees
synergy potential between its core hospital services and insurance products
for The Doctors Clinic Group's corporate clients, and anticipates an
opportunity to add further scale to the occupational health business in the
future.

 

The private GP business is aligned with the significant growth in demand for
face-to-face GP services in the UK and Spire Healthcare's plans to develop a
network of clinics. Under Spire's ownership, patients can expect to benefit
from a more convenient referral pathway to Spire's clinics and hospitals for
further diagnosis and treatment if required. The Doctors Clinic Group's
private GP footprint is particularly strong in Central London, which
represents an opportunity for Spire to gain a primary care presence in this
market.

 

Justin Ash, Chief Executive Officer of Spire Healthcare, said:

"The Doctors Clinic Group will provide Spire with a strong platform to enter
and expand in the fast-growing occupational health sector, and to increase our
capacity to meet the burgeoning need for private GP services. This acquisition
is closely aligned to our growth strategy and I look forward to welcoming all
colleagues at The Doctors Clinic Group to Spire Healthcare."

 

- Ends -

 

For further information please contact:

 

Spire Healthcare                                                           +44 (0)20 7427 9000

Angus Prentice - Interim Head of Investor Relations

Instinctif Partners                                             +44 (0)20 7457 2020

Damian Reece

Guy Scarborough

 

Registered Office and Head Office:

 

Spire Healthcare Group plc

3 Dorset Rise

London

EC4Y 8EN

Registered number 09084066

 

About Spire Healthcare

 

Spire Healthcare is a leading independent hospital group in the United
Kingdom, with 39 private hospitals and eight clinics across England, Wales and
Scotland.

 

Working in partnership with around 8,150 experienced Consultants, Spire
Healthcare delivered tailored, personalised care to almost 870,000 in-patients
and daycase patients in 2021, and is the leading private provider, by volume,
of knee and hip operations in the United Kingdom.

 

The Group's well-located and scalable hospitals have delivered successful and
award-winning clinical outcomes, positioning the Group well with patients,
Consultants, the NHS, GPs and Private Medical Insurance ('PMI') providers. 98%
of Spire Healthcare's inspected hospitals and clinics are rated 'Good' or
'Outstanding' by the Care Quality Commission ('CQC') or the equivalent in
Scotland and Wales.

 

Spire Healthcare treats patients through a variety of routes including PMI,
self-pay and the NHS, providing the Group with diversified access to the
expected growth opportunities in the UK healthcare market, which faces
significant supply challenges as a result of NHS budget constraints and
increasing demand from a growing population with longer life expectancy.

 

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