King’s College Hospital Trust signs with Serco

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These range from blood tests to screening for cancer and other diseases.

Serco's share of the King's revenues is expected to be about £110 million.

The original joint venture was set up almost two years ago and is now the main pathology supplier for Guy's & St Thomas' and Bedford hospitals.

Serco said that it has brought much greater efficiency to the joint venture in an area where traditionally as much as a third of samples have already gone off by the time they are tested.

King's has one of the largest automated pathology labs in Europe employing almost 300 people.

Its staff will remain with the NHS and be seconded to the joint venture.

Christopher Hyman, chief executive of Serco, said: "The addition of King's to our pathology partnership with Guy's & St Thomas' creates the UK's leading single pathology provider.

"It positions us well for further growth in a growing market worth some £2.5 billion a year in the UK.

"It further underlines our desire to work in partnership with the NHS to transform services for the benefit of patients and clinicians alike."

The pathology joint venture is already believed to be pitching its services at other hospitals including a group in North West London.