GM scoops £4m NHS trust deal in Ipswich
by Gaby Huddart
Gardner Merchant (GM) has won what is believed to be the biggest hotel services contract ever awarded by an NHS trust.
The fixed-price deal to provide catering, domestic, portering and transport services to Ipswich Hospital NHS Trust is worth £4m a year in turnover and involves a five-year contract with an extension facility of a further two years.
"The length of this contract is very significant," GM's corporate communications director, Bob Cotton, told Caterer. "Three-year contracts used to be the norm but we've always argued they should be longer to allow enough time to bring about changes. This is the longest contract ever heard of in the health service."
He said GM's length of experience in the health service was crucial in clinching the contract, which begins in July. The company has held health service contracts since 1947 and currently operates 75 in Britain.
The trust's chief executive, Brian Websdell, said he had decided to put the hospital's hotel services out to tender after research revealed the trust was spending more than others in the health service on its in-house services.
"The contract, even with its quality improvement specifications, will save us £400,000 a year which we can reinvest in clinical care," he explained. "We decided it was time to concentrate on clinical services and to bring in experts in hotel services."
He said Gardner Merchant would be taking on all 480 staff currently employed by the trust's hotel services unit.
Changes to be introduced by GM will include the introduction of housekeeping teams on the wards, and bedside meal selection for patients. Until now, patients have had to choose their meals the previous day.
The company beat four other contractors who made it to the shortlist, including Compass, ISF Mediservices and Initial. It is understood 19 companies expressed an interest in the business.
The gain comes at a time when GM's healthcare contracts are to be merged into a single operation with those of its new sister company, Sodexho Services UK.
Mr Cotton said the name of the operation was likely to be either Sodexho Healthcare Services or Gardner Merchant Healthcare. A decision is expected in the next couple of months.
