Virtual care service Babylon in financial trouble
August 9, 2023
LONDON, UK – Online healthcare business Babylon Health is fighting for its future as it tries to find enough cash to keep its UK arm going until it can find a buyer. It said the UK part of the business is still “successful” and “sustainable”, but warned that it might have to be put into administration if a solution cannot be found.
Babylon’s GP at Hand service, which is funded by the NHS, became the first general practitioner in the UK to get a list of more than 100,000 patients in August 2021.
But the digital-first service was criticized for being overwhelmingly used by younger, and therefore likely fitter, patients.
The US-listed business said on Monday that the hopes of combining one of its subsidiaries with fellow healthcare company MindMaze had fallen through. The proposal “will not proceed”, it said.
But Babylon was still hopeful about finding a buyer for its UK arm, it said.
“The group is exploring new strategic alternatives in order to find the best possible outcome for its UK business,” it said.
“Babylon remains focused on continuing the day-to-day operations of its UK business, providing accessibility of its healthcare services and the highest standards of care for its patients and members. The group is pursuing the divestiture of its UK business to third parties that may provide financing to assure the continuity of the operations.
“Babylon has built a successful, distinct and sustainable UK business which provides high-quality healthcare to many.
“However, it cannot provide assurance that any of these initiatives will result in Babylon entering into a definitive agreement for or completing a divestiture.”