Rutherford Health faces collapse

Zina Fragkiadaki
June 7, 2022

Rutherford Health, a healthcare group which operates cancer and diagnostic centres in the UK, is to go into liquidation following severe financial pressures on the business.

An application will be made later this week to appoint the Official Receiver, an officer of the Insolvency Service, as liquidator.

Rutherford Health had invested heavily in building its cancer centre network, with over £240 million of capital expenditure, but patient numbers have not matched that, Sean Sullivan, chief restructuring officer and interim chief executive, said.

She added: “Covid has been particularly damaging for us as fewer patients were presenting with side effects during the lockdowns, and as a result cancer diagnosis has been delayed and sadly, in many cases, missed. This has meant fewer cancer patients have been presenting to our centres.”

The group made efforts to increase patient flow by offering the NHS a not-for-profit national contract in addition to existing local contracts. “We made several offers to the NHS, and whilst we secured some contracts they were insufficient and we have not been able to secure mechanisms to expedite process. This added to severe financial pressures on the business and we had no option other than to place the group into liquidation,” Sullivan said.

Established in 2015, Rutherford Health was founded by Mike Moran and Karol Sikora, with investment from Neil Woodford and the Wales Life Sciences Investment Fund.

The group has built a network of oncology centres known as the Rutherford Cancer Centres which are located in South Wales, Northumberland, Liverpool and Thames Valley. More recently the group opened the first community diagnostics centre of its kind in England, located in Somerset. It comprises a number of subsidiary companies including Rutherford Cancer Centres, Rutherford Diagnostics, Rutherford Innovations and Rutherford Estates.

Rutherford Health’s staff have been informed and a process of informing patients is underway. The small number of locally commissioned NHS patients are being returned to their local NHS Trust to finish their treatment.

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