As part of its cost-cutting efforts, Britain may ship blood and urine samples from National Health Service (NHS) patients to India for clinical tests and in return get test results by e-mail.

Private sector hospitals are already conducting trials of the service, reducing the cost by one third and the company behind the scheme -- SRL Ranbaxy, Mumbai -- is now targeting the public sector and has already held discussions with concerned ministers. 

The health department officials have met representatives of SRL Ranbaxy to hear how outsourcing to India could work. Trade Secretary Patricia Hewitt also met the representatives of the firm earlier this month.

Harpal Singh, chairman of SRL Ranbaxy, said he held discussions with the department last September and several NHS facilities to "showcase our capabilities", although the NHS had not yet approached the firm to start formal trials. He also spoke to Hewitt earlier this month.

"She was very positive. She recognised the opportunity. She said that this required greater study and examination," he said.

SRL Ranbaxy conducts clinical tests for more than 600 hospitals in India and last year it set up services in the Middle East. It is a division of Fortis Healthcare, which is also looking at opportunities to run hospitals in the United Kingdom.  It is associated with Ranbaxy, the Indian generic drug manufacturer, which is doing increasing amounts of research and development for the western pharmaceutical companies.

The firm estimates that 40 per cent of the pathology testing in the United Kingdom which is worth about 2 billion pounds per annum has the potential to be outsourced to India. 

It would not be worthwhile for some simple tests such as haemoglobin counts to be outsourced, but for more complex tests the firm says it could cut costs by 20 to 30 per cent.  Laboratory technicians are paid from 4,000 pounds to 15,000 pounds in India, depending on experience.

According to Singh, the firm is conducting pilot tests for a "large hospital chain" in the UK. He said the hospital chain appeared to be satisfied and he hoped to begin talks on a long-term deal shortly. "There seems to be great comfort that quality standards might be matching or better than in the UK."

He said the samples would be flown to Mumbai and sent to the firm's main laboratories there, which already conduct clinical trials for large drugs firms. The labs are open round-the-clock and tests would take a minimum of 48 hours. The system could be quicker than keeping the testing in UK.
 
"By the last quarter of this year, we will probably have pilots with three to four hospital systems," he said. 

"As soon as the idea gets established, it might be the right time to identify some of the NHS hospitals."

"Like the IT and services sector, Indian (healthcare) institutions have reached that maturity," Singh said. "There are many opportunities in the supply of services, nursing, surgical services, many things we now supply to each other."

The company is also looking to develop its radiology testing capability. There is backlog in testing in the UK, which could be outsourced more easily than traditional lab test as the pictures could be e-mailed to India and results e-mailed back.