BT signs strategic partnership deal with leading children’s hospital

Alder Hey Children’s Trust has signed a strategic partnership with BT to shape its ICT strategy and help it become a “world class provider” of children’s healthcare.

Although details of the agreement are yet to be revealed, a contract notice outlining what Alder Hey was looking for, state that BT will be required to provide strategic planning, business transformation and consulting services to the Trust’s ICT strategy and any related intellectual property.

It is thought that the deal could be worth up to £50 million.

Alder Hey serves more than 200,000 children and young people of Merseyside and the North West of England every year.

The original contract notice states that the initial phase of the partnership will be a pilot phase (lasting 1-2 years) during which development opportunities will be considered and planned. The second phase will focus on exploitation of developed products.

Alder Hey also stated at the time that the partnership may take the form of a joint venture model, where the remuneration of the partner may be based on a ‘risk and reward’ model.

Tola Sargeant, director at analyst house TechMarketView, said that it is difficult to predict how the deal will play out for BT, but it is a good win for the company’s NHS business.

“What’s not entirely clear from the OJEU contract award notice is exactly how the deal with BT is to be structured, or its value. The tender notice estimated the total contract value at £50m: c£500k for a pilot phase lasting one to two years and up to £5m per annum thereafter over a 7-10 year period,” said Sargeant.

“But we know that Alder Hey favoured a joint venture-type arrangement and ‘risk reward’ model, including the possibility of exploiting jointly-developed IPR. It’s therefore difficult to predict how lucrative the deal will be for BT, especially given that Alder Hey is far from the only hospital looking to exploit any IPR (intellectual property rights) that it might develop, and hospitals - especially leading specialist ones - do have a tendency to want to do things their own way rather than follow someone else’s example.”

She added: “Nevertheless, Alder Hey is a high profile hospital and the deal is another good strategic win for BT in the NHS IT market."

In similar news, Central & North West London NHS Foundation Trust recently signed a £62 million deal with CGI (previously Logica) to provide IT infrastructure services for the next five years.

The deal will see CGI introduce enhanced mobile working capabilities for the trust, as well as more innovative, digital technologies.

Copyright © 2014 IDG Communications, Inc.

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