U.K. firm Quindell buys stake in Canadian chain of health clinics

Quindell Portfolio plc, a consultancy, software and outsourcing firm active in the insurance and claims industry, has agreed to a 26% investment in PT Health, a provider of healthcare and rehabilitation services with over 100 physiotherapy and rehabilitation clinics across Canada.

U.K.-based Quindell, which recently partnered with Canadian brokers on a telematics program, has also secured the option to acquire the remainder of PT Health.

Approximately 15% of its 10,000 sessions that PT Health offers per day are due to insurance related incidents, including rehabilitation following accidents, Quindell said.

“As PT Health does not generate a significant amount of its profit from motor vehicle accidents this provides the opportunity for Quindell to enter the market,” according to its statement.

“Quindell can do this by bringing volume from and leveraging its relationships with its partners, including the Insurance Brokers Association of Ontario (the IBAO), helping the industry to stamp down the cost of claims in this area in Canada as it has in this area in the UK, targeting a year-one saving of 20% to 30% compared to industry averages for the at-fault insurers and their broker partners,” it said.

The move is also a way for Quindell to expand its other services into the North American market, its statement noted.

“Quindell already has existing relationships with leading insurance companies and intermediaries within Canada whose members directly or indirectly distribute approximately 60% of insurance in Ontario, including a five year exclusive agreement with the IBAO,” Quindell also noted.

“We are thrilled to announce our investment in PT Health at a time when we are seeing real traction in the Canadian market,” said Rob Terry, chairman and executive chairman of Quindell.

“This investment and potential acquisition is in line with our core strategy of only paying for the existing business we acquire and not for the effect we can have on those businesses by bringing additional volume or improving it with our technology, thereby underpinning significant earnings growth and strong return on capital for our shareholders.”

“We are excited by the prospect of being able to work with Quindell to actively promote their rehabilitation solution that will have a fundamental effect on stamping down the cost of claims whilst delivering excellent service to consumers,” Randy Carroll, CEO of the IBAO noted in the Quindell announcement.

“The high cost of providing rehabilitation following a motor vehicle accident is a significant issue for the Canadian insurance market, and there is a clear need for someone to provide an efficient and effective service.

Quindell’s outsourced services are exactly the kind of initiative that is needed in the market place and we look forward to leveraging them to the benefit of consumers, our brokers and the insurance supply chain as a whole.

Reader Comments

memi

Another attempt to destroy Health Care in Canada and siphon off the last dime from Ontario taxpayers in their most vulnerable times--after a motor vehicle accident.

This is a dangerous precedent under the guise of "savings", but the only savings will go to the pockets of the Insurance companies, for whose lobbyists' interests our Ontario government works so well, leaving the rest of us dazed overworked herd in a worse shape than before the accident.

When will the government stop listening to these global parasites and use some real initiatives in health care to benefit us, the citizens and taxpayers of this province, and not the multi-billion-dollar foreign enterprises out to make a buck on our backs, eh!? Shameful!!

Posted September 27, 2013 03:15 PM


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