Struggles continue at NHS 111 operator Totally as boss warns of ‘unforeseen pressure’
NHS outsourcer Totally has warned of “unforeseen pressure” on its services after it initiated a restructuring to manage growing costs.
Higher than anticipated agency staff costs and delays to the awarding of government contracts have weighed on the business over the last year and shares have fallen over 75 per cent.
The company, which operates the NHS 111 service, said it had seen an improvement in performance after a review by the Board into its structures and systems.
However, it still forecast a decline in revenue from £135.7m to £106m over the full year. In a trading update, the firm said earnings before interest, taxation, depreciation, and amortization (EBITDA) would come in at £2.3m, against £6.9m the year prior.
Wendy Lawrence, chief executive officer, said: “We remain steadfast in our commitment to stand alongside our healthcare colleagues to ensure the population can access the care they need when they need it.
“Our teams have worked tirelessly during times of unforeseen pressure with clarity and I am proud of the way Totally has approached these times and managed its own pressures without compromising quality.
“There is no doubt that the market continues to be difficult, and as commissioners have considered the actions required to move forward, we have also ensured that our house is in order.
She added: “We have robustly addressed the cost base, which ultimately protects the services we deliver to patients, our workforce and long-term shareholder value. These cost savings supported our performance for FY24 and will continue to do so in future years.”
Actions it had taken to bring down costs are expected to lead to annualised savings of £3.5m, it said.
NHS service providers such as Totally have faced growing financial difficulties in recent years. In August, Babylon Health, a digitical healthcare provider, put two of its divisions into administration.
“The Totally management team is working closely with commissioners to support them as they face the same service challenges seen across the sector,” the firm said.
“The company’s long-term vision and purpose remain, to provide capacity and expertise to support improved access and quality care to patients. Our operational teams remain committed to delivering quality care and driving innovation into Totally’s provision of services to deliver the efficiencies the NHS need to tackle current challenges.”
NHS England committed to a further year with Totally as its sole operator for NHS 111, with the contract renewed at around £13m per annum.