7th July 2020

Somerset Expansion For Listed Cancer Care Firm

 

A listed cancer care specialist has entered into an £19.1m diagnostic services agreement with Somerset NHS Foundation Trust. A dedicated facility, which forms part of a £55m expansion plan, is expected to become operational in the second half of 2021.

Rutherford Health is developing and building a network of oncology centres across the UK known as the Rutherford Cancer Centres, offering a range of treatments to patients.

Under the terms of the service agreement with Somerset NHS Foundation Trust Rutherford, via its wholly owned subsidiary, Rutherford Diagnostics, will provide the trust with a variety of diagnostics services including Magnetic Resonance Imaging, computed tomography, ultrasound, X-Ray and other relevant diagnostic services.

These diagnostics services will be provided from a dedicated facility in Taunton, which Rutherford will provide in partnership with Equitix under the terms of a £55m development framework agreement.

The service agreement is for a five-year minimum term, which is extendable to ten years, subject to the achievement of certain service levels. The service agreement is expected to commence in the second half of 2021.

In addition, to providing services to NHS patients, the centre will be available to private medical insurance and self-pay patients in the South West.

Craven Street Capital acted as financial adviser to Rutherford Health and Rutherford Diagnostics.

Rutherford chief executive Mike Moran said: “We are delighted to have signed this agreement with Taunton and Somerset NHS Foundation Trust. Rutherford has been working with NHS Trusts and NHS Shared Business Services to provide cancer services.

“This agreement further deepens our relationship with the NHS, which we are delighted to support. This partnership will enable us to provide services to both NHS and private patients in a cost-effective manner and is expected to create significant long-term value for the shareholders of Rutherford Health.”

Steve Powell, chief diagnostics officer of Rutherford Diagnostics, added: “This innovative long-term partnership with Somerset NHS Foundation Trust will enable their patients to access the most modern diagnostics equipment in a dedicated facility. We hope to develop further similar centres in partnership with other NHS Trusts in the coming months.”

Rutherford Health opened its first centre in Newport, South Wales, and has since established has two further site – the Rutherford Cancer Centre North East in Northumberland and the Rutherford Cancer Centre Thames Valley in Reading, with proton therapy now available in both.

Construction of a fourth site in Liverpool, the Rutherford Cancer Centre North West, is due to open summer 2020.