Addenbrooke' Hospital will manage and facilitate the fulfillment orders of the firm's PredictSure IBD orders, as well as receive and process all samples.
The firm said that it anticipates using the funds to scale operations in the US and to continue rolling out its service in the UK.
Pathology groups throughout the health system are being grouped hub and spoke into networks to better manage staffing needs and control costs.
Factors that may have led to the explosion in testing include more consultations between patients and general practitioners, and a fear among GPs of being sued.
The measures are part of a long-term plan for the National Health Service that will be rolled out across the country to detect 3 out of every 4 cancers at an early stage.
The £550,000 award is part of a larger multi-partner grant to develop and implement a point-of-care test to avoid antibiotic-related hearing loss in newborns.
The privately held Cambridge, UK-based company announced earlier this month that it had raised an additional £11 million to support the commercialization of its platform.
According to project organizers, feasibility testing in the first phase of the project was successful and clinical trials are planned for later this year.
The test would also be used to detect antibiotic susceptibility. Fraunhofer received £900,000 from SBRI Healthcare in support of the project to develop the test.
Although a draft guidance last month recommended against use of molecular tests to guide chemotherapy, the group's finalized decision is subject to price negotiation and other adjustments.