Patientline sees losses treble
- 30 November 2007
Hospital patient telephone and entertainment firm Patientline has reported operating losses of £11.2 million for the first half of 2007.
The firm’s auditors have said there is “significant doubt” over Patientline’s ability to continue, following the announcement. Patientline’s operating loss trebled to £11.2 million, while its loss before tax doubled to £15.3 million, in the six months to 28 September.
The losses are the latest in a series of setbacks for Patientline. In April, the company revealed they were £80m in debt and needed to increase revenues, resulting in increased tariff charges.
Shortly afterwards, the company announced that it was in urgent talks with its banks to renegotiate its debt payments so that it could invest in new technology and cut the prices it charges. These revised changes took effect from August onwards.
Ofcom’s instruction that a message should be played to callers to 0700 numbers informing them of the maximum potential cost of the calls further impacted revenues, the company added.
Patientline is still in talks with a banking consortium, led by the Royal Bank of Scotland, over restructuring its debts. Chairman Geoff White said in a statement: “If the company’s borrowings can be restructured to a sustainable level allowing the business to address the price of incoming telephone calls, the company does have a future.”
Patientline, based in Slough, Berkshire, had 71,000 bedside terminals in 155 hospitals at the end of September – 2,600 fewer than in March.
As well as telephone and TV services, Patientline’s terminals were also designed to be able to display patient records, and allow patients to carry out transactions such as ordering meals.
The company says the failure by most NHS trusts to use the patient records technology has also hit its financial performance. The NHS’s increasing tolerance of mobile phones on hospital wards, along with shorter hospital stays, has also harmed revenues, it added.
The firm is now looking at cost reductions including cutting head office staff and reducing capital expenditure.
Patientline says it hopes to continue going by slashing costs and offering hospitals new services, including a tracking system to help fight infections such as MRSA and C.difficile.
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Joe Fernandez
