Return to profit for city based health specialist
HEALTHCARE services firm Connect Health has reported a return to profit having secured a significant project and held on to existing work.
The Newcastle-based specialist in musculoskeletal services saw operating profit for continuing operations of £2.45m in the year to the end of June 2023, compared with an operating loss of £1.15m in the previous year. That was on revenue 11.2% higher at £40.2m.
In newly published accounts for the Quorum Park business, bosses say a substantial contract secured in Oxfordshire, along with new NHS community work and contract retention and extension, led to the revenue boost. However increased cost of sales, up 14.7% at £2.8m, dented profit margins slightly, causing them to fall to 48.3% from 49.9%.
The results follow the sale of Connect’s
occupational health physiotherapy division to North Westbased PAM Group in summer last year.
“The deal saw 60 of Connect’s staff transfer to PAM Physio Solutions. Connect accounted for a £150,000 loss on disposal within the accounts.
Last year Connect, which employs nearly 700 people, talked about a push to recruit 30 physiotherapy, sports therapy and osteopathy graduates who could pass through its Academy learning division to become senior musculoskeletal clinician within 18 months.
The UK-wide roles are part of Connect’s plan to grow its specialist musculoskeletal services, which are offered alongside mental health services, including therapies for anxiety and depression.
Writing in a report within the accounts, CEO Mike Turner said: “The NHS is facing continued pressure. There are many reasons for this, including an ageing and growing population with rising co-morbidities, challenges for primary care both financially and meeting the demand for GPs, and an increasingly challenging financial envelope.
“This has been exacerbated by Covid-19, which has seen a significant backlog of activity in community services during the year as a result of the impact of lockdown and has seen patients presenting with more complex conditions due to delays in referrals.
“The company believes that it has a clear opportunity to drive standards in the community sector; with a greater volume and quality of data providing detailed visibility of performance, combined with innovation in clinical delivery and support.
“It has developed formal partnerships with several leading universities to add independence and rigour to this process of learning, innovation and sharing.”
In a statement following publication of the accounts, Mr Turner said: “We are proud of the impact our business has in supporting more than 375,000 NHS patients every year with specialist musculoskeletal, physiotherapy, mental health, rheumatology and pain management services.
“We are committed to providing high quality care for people in the communities we serve, and this strong financial performance will enable us to continue to drive innovation, reduce waiting times and improve outcomes for patients.”
The company believes that it has a clear opportunity to drive standards in the community sector Connect Health CEO Mike Turner