Is Virgin the new healthcare?

By Jodie Humphries | 03/03/10 - 14:04

Sir Richard Branson

Whatever Sir Richard Branson touches seems to turn to gold, but what effect is he going to have on the healthcare industry now that it has been announced that Branson's Virgin group have brought 75 percent stake in Assura's medical services unit.

British healthcare firm Assura Group sold a 75.1 percent interest in its medical services business to a unit of the Virgin Group - Virgin Healthcare Holdings. Assura will receive a GBP£4 million loan note and a 24.9 percent equity stake in Virgin Healthcare.

The company, which retains a 24.9 percent stake in Assura Medical, said it would reinvest the proceeds from the sale in the new partnership, but would not provide further funding, Reuters reported.

Virgin Healthcare has committed to providing further funding to Assura Medical, which operates general practitioner companies (GPCo), for the development of the GPCo business.

Assura Medical's GPCos are healthcare provider organisations formed in partnership with groups of GPs. In total, the 30 GPCos represent partnerships with over 1500 GPs, employ in the region of 150 staff and service more than three million patients in England. They provide a range of high quality primary and intermediate community-based NHS services, including outpatient services, diagnostic procedures, day care surgery and GP-led health centres. The services provided aim to give choice to patients, often outside of normal working hours, the Assura website states.

Assura Group, which develops and owns clinics and pharmacies, and partners doctors in providing community healthcare, said the deal will enable it to resume paying dividend in 2010/11.

Future for the deal

Branson said, "Healthcare is a sector that the Virgin Group has been extremely interested in entering for some time but we have always said that the partner and the timing had to be right - with Assura we believe we have found the perfect partner."

He added, "I'm excited that Virgin and Assura will contine to develop this business, working alongside our NHS partners, to being excellent, high-quality services right to the heart of patients' communities."

Richard Burrell, Assura's chief executive officer, said: "With its strong brand and financial position, Virgin is the ideal organisation to take Assura Medical's business to the next stage of its development.

"Assura will preserve the upside to the business through its 25 percent stake, whilst focusing its activities on its profitable property and pharmacy businesses, capable of paying attractive dividends."

Richard Burrell, Chief Executive of Assura, will join the Board of Virgin Healthcare alongside Patrick McCall and Gaurav Batra from Virgin Group.

Jodie Humphries

Jodie Humphries graduated from Bath Spa University with a BA Hons in Creative Writing in 2008. She has worked for GDS Publishing for the digital group since July 2009. She has previous experience with writing for the web, running her own website since April 2007.

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