Healthcare without boundaries - EMIS Group plc Annual report and ...

Corporate governance Directors’ report continued
Development work continued
during the year on EMIS Web
for GPs and, more recently,
also for integrated care.
Principal risks and uncertainties
The UK Government is continuing a programme
of major change within healthcare. Although this
will provide significant growth opportunities for
the company, due to the present uncertainties
within the NHS, it could also introduce some
future risk. EMIS supplies GP software and
certain other services in England under a
framework agreement extended in June 2009
until August 2011 and further extended on
28 March 2011 until 31 March 2013. The
directors expect that this will again be fed in
or replaced with a similar framework. Whilst
the directors consider that renegotiation may
represent an opportunity to retain or improve the
present position, they recognise that there is a
risk that this will not be possible in the present
climate of austerity.
The previous Government’s policy of
a single supplier, now in the course of
being abandoned, has given competitors’
opportunity, within certain areas in England,
to try to erode the company’s market share
in those areas. The roll-out of EMIS Web
addresses this risk by migrating GPs to the
latest software and, along with the familiarisation
service, aligning with government policy to join
up healthcare by mobilising patient data. This
risk is also being mitigated by marketing and
sales activity, growth in other parts of the UK
and further supporting the interoperability
agenda through Healthcare Gateway.
The further development, hosting and roll-out
of EMIS Web presents both opportunities and
risks. Any development of major software
and its hosting is inherently subject to risk.
However, by using extensive internal and
external testing procedures, controls, disaster
recovery and avoiding a single point of failure,
the company has mitigated the risk of delay
or failure as far as is possible.
The principal financial risks are disclosed
in note 4 to the financial statements.
Employees
The group’s policy is to ensure the adequate
provision for the welfare, health and safety of
its employees and of other people who may
be affected by its activities.
The group encourages the involvement
of its employees and employees are made
aware of significant matters through monthly
updates from the Chief Executive, informal
briefings, team meetings and the company’s
website and intranet.
During the year the The EMIS Group plc Share
Incentive Plan, in addition to the matching
shares offered to employees, made an offer
of free shares to all employees that had been
employed by the company for one year on
31 August 2011. The offer was taken up by
87% of eligible employees. Further details are
contained in the Directors’ remuneration report
and note 29 to the financial statements.
The group treats applications for employment
from disabled persons equally with those of
other applicants having regard to their ability,
experience and the requirements of the job.
Where existing employees become disabled
every effort is made to provide them with
continuing suitable work within the group.
Charitable and political donations
The group made charitable donations
amounting to £5,302 (2010: £7,986) during
the year. No political donations were made
in either year.
Going concern
The company’s activities and an outline of
the developments taking place in relation
to its products, services and marketplace
are considered in the Chairman and Chief
Risks
Risk Impact Mitigation
Government healthcare policy changes
Pro: significant growth opportunities.
Con: could introduce future risk.
Increased engagement with NHS at both
strategic and tactical levels.
NHS England GP Framework discussions
already commenced.
Competitor activity
Software development and hosting
Previous governmental policy of a single
supplier, now in the course of being
abandoned, gave competitors the
opportunity, in certain areas in England,
to try to erode the company’s market share.
The development, hosting and roll-out
of EMIS Web presents both opportunities
and risks.
Marketing and sales activity, growth
in other parts of the UK.
The development of the interoperability
agenda through Healthcare Gateway.
Roll-out of EMIS Web.
Internal testing procedures and controls.
External testing.
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EMIS Group plc Annual report and accounts 2011