12 Jul 2005

The Capita Group Plc (Capita) announces the acquisition of BMI Health Services Limited, the occupational health division of General Healthcare Group for an undisclosed sum. The acquisition complements and strengthens Capita’s occupational health offering and establishes Capita Health Solutions as clear leader in the marketplace. The combined business will have over 550 employees and annual revenue in excess of £30m. BMI Health Services Limited will be renamed Capita Health Solutions following a period of integration.

Capita Health Solutions becomes the No.1 provider in a rapidly growing sector of the health services market, where outsourced occupational health solutions are increasingly being sought by both private and public sector organisations. The business is well positioned to embrace market growth for occupational health services, forecast to be 35% in real terms to 2009.

A number of factors are driving the need for outsourced occupational health services. These include rising premiums for employers’ liability insurance, increased regulation and litigation and the recognition that reduced sickness absence results in compelling business benefits. With an estimated 38.6 million lost working days per annum and a cost of £12.2 billion per annum (2005 CBI report) resulting from work-related illness in the UK, sickness absence is a key driver for outsourced occupational health. Capita Health Solutions provides services to a wide range of clients under long-term contracts, across public sector, professional, legal and financial services; and in the oil and chemical industries. The acquisition of BMI Health Services significantly strengthens the business’ public sector coverage, particularly across central government and in the uniformed services.

Rod Aldridge, Executive Chairman of Capita, commented:

“We are very proud to be establishing Capita as the largest provider of occupational health services, a significant growth area of the health services market, through the acquisition of BMI Health Services. Their strong public sector presence perfectly complements Capita Health Solution’s predominantly private sector customer-base.

The acquisition of BMI Health Services adds a strong range of services to our existing occupational health offering, notably mobile screening, audiology units and ill health and retirement assessments. We are now also the largest trainer and employer of qualified occupational health professionals outside the NHS in the UK.

This extensive, complementary set of services positions us well to embrace future market growth.”

Ian Smith, CEO of General Healthcare, commented:

“Joining together these two established providers of occupational health services creates an even stronger, expert, outsourced resource for both public and private sector employers,” says Ian Smith, chief executive of General Healthcare Group.

“Our own focus is on driving innovation in hospital-based healthcare services for individuals. We are addressing the full spectrum of that service, from wellness to treatment, for private patients in BMI Healthcare hospitals, and in parallel for public sector patients through Amicus Healthcare.”

Offices
As a result of the acquisition, Capita Health Solutions will expand its regional coverage significantly. Building on its network of centres in Aberdeen, Glasgow, Carlisle, Teesside, Blackburn, Oxford and London, the business will have additional regional centres in Leeds, Manchester, Coventry, Exeter, Newcastle, Jersey, Cardiff, Belfast and Edinburgh, along with an additional range of BMI/CHS satellite locations across the UK.