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Executive Chair's Update - 18 February 2020

Published 18 February 2020

2020 Charging Policy

The charging policy survey closed on 13th February with over 600 responses received. These will be analysed but that process may take some time.  Furthermore, any changes to our current method of charging may require significant remodelling of our IT system and process.  In order to make a final decision on the future charging policy the MedCo board will need to consider the survey results together with an impact analysis detailing the cost of, and the time required, for any IT and process changes.

Annual renewals for all users commence on 6th April each year and user agreements require 30 days notice of any changes.  As it will not be possible for MedCo to implement any major changes to its charging policy in sufficient time the board has decided to continue with the current policy for April 2020 but with a view to implementing any changes later in the year. 

In my last update I indicated that in order to ensure MedCo’s sustainability for the future we would need to review the forecast for expenditure as well as income.  This review will continue throughout the year but I am pleased to say that, in conjunction with our managed services and IT suppliers, the Board has so far identified potential reductions to our original draft 2020 budget of some £700,000 despite that fact the current revised budget forecasts a deficit at the end of this year of approximately £1.3 million.   

Having considered the budget forecast for the current financial year, and retained earnings from previous years, the directors have decided to maintain the current charging policy for MRO users and that a proportion of MedCo’s retained earnings from previous years will be allocated so as to allow an abatement of fees for existing MROs.  Annual fees for DMEs will be increased to £300 to reflect the additional costs of accreditation. 

The charging policy effective on 6th April 2020 will therefore be as follows:

Existing MRO and DME Users

Tier 1  £120,000

Tier 2  £12,000

DME    £300


New MRO and DME Users

Tier 1  £150,000

Tier 2  £20,000

DME    £300

It is anticipated that any subsequent changes to this policy will be notified to users in the Autumn.Formal notice of these charges will shortly be sent to existing users. 

Martin Heskins

Executive Chair

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