In the last couple of weeks DXS International plc has moved its main UK address to Wrecclesham House, Wrecclesham Road, Farnham, Surrey GU10 4PS United Kingdom. Should you need to contact me by phone the telephone number is still +44 (0)1252 719 800 or Freephone 0800 028 0004 or by email at info@dxs-systems.com.
The reason for the move is two-fold, namely to seek premises that can accommodate measured expansion to take advantage of the increased opportunities for DXS International plc, with the changes within the NHS and the changeover to Clinical Commissioning Groups (CCG's) in the UK. In addition, the terms were financially favourable to the Group, at the same time giving extra workspace as the business expands and the ability to sub-let office space until fully needed and with a reasonably generous rent-free period.
You may have well have realised from our regulatory announcements over the last 12 months that DXS is making a significant entry into the UK healthcare market. With the start in April this year of CCG's being responsible for finding savings of up to £20 billion of efficiency savings, DXS are determined to take the opportunity to help these organisations find cost-effective ways of reaching their targets.
In terms of DXS, a number of major milestones have been reached over the last 15 months, not least the signing of an integration agreement with EMIS plc, the largest supplier of clinical systems in the UK. This now means that DXS has access to almost 90% of GP practices throughout the UK. In addition the extensive research and component development that we have undertaken over the last four years have been consolidated to deliver specific and, sometimes, tailored solutions required by the CCG's.
Just to recap, there are 5 key areas where DXS can provide CCG's with cost-saving and quality-enhancing solutions:
- Improved utilisation of Care Pathways. This is crucial to achieve the aim of cutting costs, while continuing to deliver a high standard of healthcare. Care Pathways are the accepted gold standard for delivering medicine based on the best known evidence at any given time. A major problem is that busy doctors simply do not have the time to always find and refer the optimal care pathway for the patient's condition. DXS' systems automatically present an appropriate care pathway to the clinician during the patient consultation. Proper utilisation has been shown to save as much as 30% of costs, which, for diabetes for example, could equate to billions of pounds saved annually.
- Improved education for both provider and patient. There is no doubt as to the benefits of educating both parties. For example a patient who has been properly educated about his/her problem is more likely to change bad habits and be more compliant to the treatments proscribed.
- Improved quality of referral. Poor quality and unwarranted referrals cost the country billions of wasted pounds. DXS now offers CCG's a defined service where the quality of the referral information and service provider are enhanced, this being one of the key NHS objectives.
- Better prescribing of medicines. More must be done to curb and make more efficient spending decisions on prescription drugs, which is almost £10 billion per annum. DXS provides CCG's with a method of providing clinicians with guidance 'at point of prescription', which again translates to improving the prescribing more cost-effectively.
- Improved diagnosing. Incorrect diagnosis sadly accounts for many unnecessary deaths each year. DXS has integrated ISABEL, the foremost diagnostic tool, and is able to offer this as one of our bouquet of products
We have been very pleased with the feedback that we have received from the CCG's who have already signed up to DXS solutions. They are hugely impressed with the product and we already have many 'DXS disciples'. From the regulatory announcement that DXS put out on 3rd May this year, you may have seen that, at the time, DXS had signed up additional CCGs, taking the total under contract to nine. A further five CCG's had confirmed back in May that they would be proceeding with DXS. We also announced then that the Company had recruited two more experienced sales people to drive the expansion into CCG's all across the country. There are approximately 212 CCG's in the UK and with DXS Point of Care, which we believe is the foremost clinical information system on the market, there is scope to roll this out to many more of these groups nationally.
Further back, in January of this year, DXS announced that the EMIS integration was complete and had deployed "DXS Best Pathway" to over 50 EMIS practices with positive results. DXS was also pleased to announce that, in response to growing customer needs, DXS has developed a new product called " DXS Best Triage" - this triage product enables practices to electronically send referral forms to their own triage centre, and has proved to offer cost-savings and improved accuracy to the practices deploying it. This is relatively easy, we believe, to roll out to other GP practices going forward.
I would like to thank you as a shareholder for your continued support. These are times of great opportunity for DXS and we intend to make the most of this for the benefit of shareholders and staff.
Finally you may not have seen the upgraded DXS website http://www.dxs-systems.co.uk. It gives a good overview of the improved services we now provide for serious cost-efficiency savings for the NHS.
Yours sincerely
David Immelman
Chief Executive