Spotless secures long term extensions to key health contracts

Spotless is pleased to confirm that it has extended multiple, long-standing contracts to provide integrated services to major facilities operators in the Australian health sector.

5 year integrated services contract extension with the Victorian Alfred Hospital
4 year extension to national Healthscope partnership
Combined contract revenues of circa $210 million over five years
This brings the total value of key strategic contracts awarded (including new wins) during March 2017 to over $330 million
The contract extensions reflect Spotless management’s strategic focus on driving value through long term, integrated, multi-service contracts which leverage the business’ scale, expertise and geographic foot print.

Spotless continues to progress discussions with a number of other parties as part of its targeted approach to new major contract wins and renewals in the Health, Education, Government and Defence sectors.

Such contracts deliver a number of advantages to Spotless including multiple revenue streams from each contract; relatively light capital support requirements; and long term revenue and earnings certainty.

The Alfred Hospital
Spotless has been providing cleaning, food, ancillary, ward support, grounds and gardens maintenance, pest control, hygiene services and security services at The Alfred Hospital for more than 12 years (contract commenced May, 2004).

The 580+ bed hospital houses one of Australia’s busiest emergency and trauma centres, Victoria’s largest intensive care unit, and the only adult burns centre in Victoria and Tasmania.

Spotless’ Executive General Manager, Health and PPP’s Mr Stephen McIntyre said, “We are delighted to continue our long-standing relationship with The Alfred to deliver consistently high quality non-clinical services that meet the 24/7 requirements of one of Australia’s most significant health facilities”.

Healthscope

Renewal and expansion of the Healthscope contract will see Spotless continue to provide integrated linen rental and laundry services at 31 of Healthscope’s existing hospital facilities, plus 10 additional locations around Australia.

“We are very pleased to be able to continue supporting Healthscope as they provide quality healthcare to thousands of Australians every day,” said Harley Oaten, Spotless Executive General Manager, Laundries.

“A clean and dependable laundry service is essential to quality patient care, and we’re proud to have been providing such a service to Healthscope for close to 20 years,” Mr Oaten said.

“One of the most important aspects of this long-term partnership has been the diligent work of our account managers. They remain in close contact with Healthscope representatives to ensure we are always across all of their needs,” Mr Oaten said.

Spotless’ linen rental and laundry services for Healthscope include sheeting, pillow slips, blankets, bedspreads, surgical packs, scrub suits and patient gowns. The services will be delivered from seven Spotless laundries across the country.