DH confirms sale of Dr Foster Intelligence

HSJ revealed in August that the DH’s stake in the information analyst, which publishes the annual Hospital Guide, could be sold following the announcement of a “strategic review” of options for the future of the enterprise.

The review, carried out with input from KPMG, was sparked by the government’s spending review framework in June, which urged departments to “maximise value from assets that do not need be held in the public sector”.

The DH and Dr Foster Holdings LLP today confirmed they would be selling all shares in Dr Foster Intelligence, “making it completely independent of government”. Currently, the DH owns a 48.75 per cent stake in Dr Foster Intelligence, with 51.25 per cent held by Dr Foster Holdings LLP.

All the shares will be sold together rather than individually in order to “make it more attractive to potential buyers and provide the current shareholders with the best value for their investment”, the DH said in a statement.

Health minister Simon Burns said: “Organisations should be free to innovate and present data, and the government should ensure that it is maximising the value of its assets.

“As our reforms set out, more comprehensive and transparent information, including patients’ own ratings, is vital for true choice – without it, patients and service users cannot make informed choices and take control of their care.”

Dr Foster Intelligence chief executive Tom Moloney added: “All parties believe that an independent Dr Foster Intelligence will be best placed to help its customers and stakeholders implement the information revolution called for in health services, and we will work together in the coming months to ensure an effective and robust sale process.”

Dr Foster Intelligence was established in 2006 as a joint venture between the NHS Information Centre and Dr Foster Holdings LLP. The NHS Information Centre transferred its shareholding to the Department of Health on 9 July 2010. For the year ending 31 December 2009, it generated revenues of £22.1m.

On 1 April 2010, Dr Foster Intelligence’s holding company also acquired Dr Foster Research Limited in a share-for-share exchange. For the year ending 31 December 2009, DFR generated revenues of £1.9m.

The DH said the acquisition of DFR is expected to give the enlarged group access to a number of “growth opportunities outside of the NHS”, including local government, the independent sector, the pharmaceutical industry and internationally.