EMIS has been selected for the GP IT Futures framework, securing it the opportunity to continue to sell its core clinical GP software in England. Despite the change from per practice to per patient charging, management expects to receive broadly similar payments. In our view, the risk of increased competition in the core systems market should be weighed against the potential to generate incremental sales of catalogue solutions.
EMIS has been awarded a place on the GP IT Futures framework (subject to a 10- day standstill period). The framework will replace the existing GP Systems of Choice (GPSoC) framework from 1 January 2020. Two types of suppliers have been selected: foundation, to provide the core clinical functionality required by GPs, and catalogue, to provide additional system capabilities. EMIS will provide both foundation and catalogue solutions. According to the NHS, 69 suppliers have been selected in total, with three new foundation suppliers added to the existing GPSoC roster. Payments for services under the new framework will typically be on a per patient rather than per practice basis; management expects to earn broadly similar revenues assuming market share is unchanged. All foundation and catalogue solutions require approval before being added to the NHS Digital Buying Catalogue – the company estimates that it is at an advanced stage in this process. At this point, we make no changes to our forecasts.