NHS Trust selects flexible finance agreement to spread the cost of new RFID (Radio-Frequency IDentification) software investment.
Softcat and specialist partner use Syscap finance to land major public sector software deal
Hospitals in the UK face intense pressure to drive efficiencies and improve patient services whilst wrestling with severe government-enforced funding cuts. According to research, unless urgent action is taken the NHS could be facing a financial shortfall of approximately £20 billion by 2020-21. Staff costs alone account for just under half of total NHS spending and around 70 per cent of a typical hospital’s expenditure.
Although modern technology can help to transform productivity and standards of care, as budgets continue to be squeezed many trusts struggle to prioritise investing in new IT systems and software to deliver cost savings. This dilemma was facing one London-based NHS trust which wanted to improve the efficiency of its library services to make it easier to access up-to-date clinical information throughout the organisation.
The NHS trust realised that Radio Frequency Identification (RFID) software from one of Softcat’s IT vendor partners would enable it to automate manual processes in health records management and eliminate documentation being lost. Leading RFID technology assists hospitals to find and place tagged health records, significantly reducing time spent manually filing and retrieving information.
While the benefits of RFID technology were clear, due to ongoing funding concerns the trust was reluctant to commit to purchasing the software upfront as keeping pace with technological advancements would require considerable capital expenditure.
The solution – Syscap finance
Softcat has established partnerships with leading software vendors not accredited under government and specialist NHS buying frameworks. The company acts as a preferred reseller to enable public sector organisations to access innovative new IT solutions. In 2015, Softcat secured a bid for all 11 lots within the Technology Services Framework to provide a wide range of specialist IT services until 2019.
Softcat’s dedicated NHS team has expertise in delivering bespoke healthcare solutions from a variety of disciplines including cloud, converged infrastructure and IT consumerisations helping many NHS trusts to meet critical Quality, Innovation, Productivity and Prevention (QIPP) measures.
In order to assist its partners to overcome public sector budgetary constraints and close more deals, Softcat selected Syscap to run a bespoke finance programme and leasing desk. As the UK’s leading IT finance company, Syscap works directly with clients and in partnership with industry-leading IT software vendors, resellers and distributors. By offering flexible and tailored finance solutions, Syscap helps public sector organisations to acquire essential technology by spreading the cost over an agreed period instead of paying a lump sum.
The results and benefits – a partner’s success
Underpinned by Syscap, Softcat and its vendor partner was able to offer the NHS trust competitive payment over time leasing and managed services options so it could finance a £1 million investment to purchase the most up-to-date RFID software.
“As our approved public sector finance provider, Syscap has the remedies to assist NHS trusts to realise the considerable efficiency savings they need to find over the coming years.”
Mark Brazington, Partner Programme Manager at Softcat
The bespoke funding structure covers ongoing IT support and maintenance in one simple agreement and allows flexibility in payment terms to match the trust’s cash flow streams so it can protect vital working capital.
Syscap’s agreement played an instrumental role in securing this significant deal.
Mr. Brazington continued:
“Syscap’s experience of working with public sector organisations of all sizes ensures it is able to offer a value-add service. This helps our partners convert opportunities they may otherwise have lost, whilst offering cash-strapped NHS Trusts bespoke finance programmes to acquire the IT assets they need now to achieve a rapid return on investment.”
Benefits for the trust include being able to limit its financial exposure from IT assets that decline in value over time, realising return on investment prior to rentals commencing. The trust has also been able to reclaim VAT on all the rentals for the software and services provided, representing a major cost saving at a time when the organisation’s budgets are under pressure from all sides.
Furthermore, by utilising the software’s ‘smart indexing’ functionality to save approximately 80% of the time that was previously allocated to filing health records, the trust has been able to reduce headcount and associated staff costs to achieve a tangible return on investment from the new RFID technology.