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News
David Woods, 20 Dec 2011
Healthcare provider, Simplyhealth has acquired provider of dental payment plans and dental employee benefits, Denplan.
It is hoped the acquisition will mean Simplyhealth will be able to support more people in more ways with their health, giving greater value back to the people it serves.
Simplyhealth will look to support the aspirations of Denplan, and as such is committed to Denplan's strategy of providing a full range of added value services and support to dentists, practice teams, patients, brokers, businesses and independent schools.
Des Benjamin, CEO of Simplyhealth, said: "Over the past 10 years, Simplyhealth has been on a path of growth and diversification. By joining with companies that share common values, we have been building a strong organisation based on mutual values that will help people now and in the future. Our goal is to become an important, high quality part of the new health system as it emerges over the next few years and offer greater value to our customers and communities. The acquisition of Denplan is an important step on this journey.
"Denplan will find a strong and natural, strategic home within Simplyhealth. Both companies share a strong focus on customer service based on a fundamental belief in helping people access high quality healthcare and a culture and ethos which promotes staff engagement."
Denplan's MD, Steve Gates added: "We are confident we will benefit from the fact that Simplyhealth is solely focused on health, as well as being a UK based organisation based on mutual principles, which shares the same values and ethos as Denplan.
"This change also provides Denplan with some very exciting opportunities to further enhance the services and support that we can provide our clients. As we go forward into 2012, our absolute focus will remain on supporting them."
This acquisition will help Simplyhealth to gain market presence in a complementary area of healthcare, supporting the broader diversification strategy, which has also recently involved the acquisition of Groupama Healthcare.
Brokers and their clients and businesses large and small can continue to use the same contact details for both organisations and quote for new business from both Simplyhealth and Denplan.
4 comments on this article |
What about us 20 Dec 2011
£115m purchase price vs £14m profit. In simple arithmetic terms an 8 year payback, if current profitability sustains. Denplan had two major high points - 1986 first mover advantage when founded in 1986 by two dentists - 2006 NHS revision of dentists contracts resulting in flight to private care. - 2010 despite major marketing activity membership fell by 50,000 - Revisions to NHS dentists contracts meant many NHS dentists could earn more by remaining with the NHS, so private practice transfers declined significantly - However, cost cutting due to organisational bureaucracy in a relatively under competed market offer around 20% gains
Incisor 20 Dec 2011
The Simplyhealth purchase of £115m purchase of Denplan's profit at £14m p.a. In simple terms represents an 8 year payback, if current profitability sustains. Denplan had two major high points - 1986 first mover advantage when founded by two dentists - 2006 NHS revision of dentists contracts resulting in flight to private care. - 2010 despite major marketing activity membership fell by 50,000 subscribers - Revisions to NHS dentists contracts meant many NHS dentists could earn more by remaining with the NHS, so private practice transfers of a captive audience declined significantly - However, organisational cost cutting in a firm that has not been subject to real market competition or commercial management (e.g. due to IT legacy issues, of circa 300 employees over 50 are employed in the IT department) offers potential for at least 20% efficiency gains e.g. a 6.5 year investment break even Incisor
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