pdfPME Signs $8M Deal with WellSpan Health – Acrobat pdf 117k

20 November 2014

Key Points:

  • WellSpan to use Pro Medicus’ Visage 7 technology for primary diagnoses and clinical distribution of medical images
  • Seven-year deal, with base value to PME of A$8 million (US$7 million)
  • Transaction-based model with potential upside
  • Second large US deal for PME in past seven months

Leading e-health company Pro Medicus Limited [ASX: PME] today announced the signing of an A$8 million (US$7 million) seven-year contract with WellSpan Health (“WellSpan”) – a large regional health network in the north-eastern United States. This is the second large US contract Pro Medicus has signed in the past seven months.

The contract will see WellSpan use Pro Medicus’ Visage 7 technology as a core component of its new enterprise imaging platform for the next seven years, and possibly longer.

WellSpan is a highly regarded, regional not-for-profit health network operating principally in the US states of (south central) Pennsylvania and (northern) Maryland. Impressively, WellSpan operates the region’s only accredited Level 1 Trauma Center and Primary Stroke Center. It spans 93 patient care locations and a network of four hospitals. WellSpan York Hospital, WellSpan Gettysburg Hospital, WellSpan Ephrata Community Hospital and the WellSpan Surgery & Rehabilitation Hospital. WellSpan serves a patient population of more than 650,000 people, has more than 11,000 employees, and is consistently ranked a top 100 US integrated healthcare network.

The contract, which is based on an operational (transactional) model, covers a seven-year term with an estimated value to Pro Medicus in excess of A$8 million (US$7 million) over the life of the contract, with potential for further upside.

Under the agreement, Visage 7 technology will be used throughout the WellSpan network for primary diagnosis, as well as clinical distribution of diagnostic images from the WellSpan EMR, and to WellSpan’s extensive base of referring physicians.

Dr Sam Hupert, CEO of Pro Medicus said, “We are delighted to have been selected by WellSpan following their detailed market analysis. WellSpan joins our growing install base of large, highly regarded US based health systems that have chosen to standardise on Visage 7 validating our view that our offering is truly unique. Visage 7 enables even the largest imaging organisations and health systems to dramatically transform the interpretation and delivery of medical images.”

“This deal is further proof that the Deconstructed PACS® or best-of-breed paradigm is rapidly becoming the new enterprise imaging strategy of choice,” he said. “This combined with Visage 7’s unique ability to deal with the extremely large image files created by modern radiology equipment ideally positions us to leverage these market changes. As a result we are actively pursuing a number of other opportunities both in the US and other parts of the world.”