Serco lands £85m contract extension from Norfolk and Norwich University Hospital

Friday, August 28, 2015

Serco, the embattled outsourcing company, has landed an £85m contract extension at the Norfolk and Norwich University Hospital (NNUH).

The business will continue to run some of the hospital’s services from August 2015 to August 2021 – a five-year increase on its current contract.

Services delivered to the NNUH will include hospital portering, catering, laundry services, waste, security, car parking and ground maintenance.

It comes as Serco revealed better-than-expected half year results earlier this month, posting a 4pc rise in operating profits before exceptional items to £59.8m. It was a sign that the company may have turned a corner after facing a series of blows last year which led to four profit warnings.

Nayab Haider, Serco’s contract director, said: “We are delighted to continue our long-standing partnership with Norfolk and Norwich University Hospital.

“Serco is in a unique position to deliver our stretching but realistic proposals, which will demonstrate value for money while safeguarding quality care and safety for patients.

“The team’s focus over the next six years will be to continue to improve patient satisfaction, as well as infection control and prevention, while supporting the improvement of patient flow initiatives and making guaranteed cost savings.”

Serco is contracted through Octagon Healthcare to provide facilities management to the hospital, which has 1,050 beds and treats more than 700,000 patients each year.

Serco’s soft services contract was also renewed recentlyfor a further five years. It was originally awarded in 2001 with extensions in 2006 and 2010.

Julie Cave, director of resources at Norfolk and Norwich University Hospital, said: “[Serco] have been very open to the inclusion of patients and patient representatives in the design of services and have worked with us to introduce innovations in service provision and to reduce costs.”

The NNUH was the first new build PFI hospital in the country and has been open since August 2001 when Serco started the contract to provide Total Facilities Management.