Cheaper calls pledge after takeover

Last Modified: 25 Jul 2008
Source: PA News

The new owner of failed hospital telephones and televisions firm Patientline has pledged to lower call charges for thousand of patients.

Patientline, which has struggled under an £85 million debt burden, was placed into administration and immediately bought by newly-formed company Hospedia.

Hospedia is also buying Patientline rival Premier Telesolutions. The overall group will be run by Premier boss Tim Weil, subject to approval from competition watchdogs.

Hospedia said its intention was to lower incoming call charges for patients paying up to 49p a minute by Patientline, sparking anger from health groups.

Incoming call prices are likely to fall to the 20p a minute charged by Premier if the deal goes ahead. The Office of Fair Trading should make a decision by October.

The new company also plans to add another 20,000 terminals to the 80,000 already operated by the two businesses across the UK, and offer better services such as improved internet access and on-demand movies.

Patientline found servicing its heavy debts proved too much following bad publicity over price hikes, lower bed occupancy and a more relaxed attitude to patients using mobile phones on wards.

The company's terminals were also designed to hold patient records, and allow patients to order meals - but the failure by most NHS Trusts to use the patient records technology also hit its financial performance.

Patientline's bankers have agreed with Hospedia to write off £35 million of its debts through a debt for equity swap in return for an undisclosed stake in Hospedia.

Slough-based Patientline was set up in 1994 and had almost 1,000 staff. A spokesman said there had been no redundancies as a result of the sale although current chief executive and turnaround specialist Nick Winks will leave the business. He said: "After many months of working to turn around Patientline and exploring many potential options, I am convinced that this transaction is in the best interests of our customers, staff and banks."

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