NHS SBS takes on McKesson HR business

McKesson has continued the disposal of McKesson UK with the sale of its McKesson Shared Services business to NHS Shared Business Services.

The deal will see business support service NHS SBS take control of all HR, payroll and pensions services provided by McKesson UK for an undisclosed fee.

NHS SBS will take on an additional 44 employment services contracts, expanding its existing employment services unit, which works with 82 NHS organisations to provide various HR functions.

McKesson announced its intention to sell its McKesson UK in May 2013, saying the business accounted for only a small percentage of revenues and it need to focus on its core business of distributing healthcare systems, medical supplies and pharmaceutical products in the US.

The company has gradually wound down its UK arm, including the sale in 2014 of most of its European healthcare software business to private equity firm Symphony Technology Group.

This included its UK health and social care business, featuring System C and its electronic patient record Medway and the Liquidlogic social care system.

McKesson's imaging business, and the large number of trusts using its imaging systems, have been unaffected by these changes.

Until recently, McKesson UK provided the NHS Electronic Staff Record, but announced last year that it did not want to deliver the service beyond the expiry of its contract in November 2015, saying it was no longer a “core business” for the company.

Since then, IBM has been confirmed as the supplier to take control of the NHS ESR, beginning this month.

NHS SBS has supported payroll and pension services in the NHS for nearly a decade, driving efficiency savings by supporting functions such as recovering overpayments and processing the monthly payroll run.

Referencing the acquisition, NHS SBS’s managing director said: “We have already proven our capabilities in this respect and now with this acquisition we can broaden the support we provide across the NHS that can ultimately free-up more funds and resource for frontline care.”