27 April 2016; pdfCompany Announcement FMOLHS April 2016 – Acrobat pdf 163k

Key Points

  • Franciscan Missionaries of Our Lady Health System (FMOLHS) to use Pro Medicus’ Visage 7 technology for primary diagnosis and enterprise distribution of medical images
  • Seven-year deal with base value to PME of A$7M
  • Transaction-based model with potential upside
  • Second deal as part of the ROi master purchasing agreement

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly owned US subsidiary Visage Imaging, Inc has signed an A$7 million, 7-year contract with the Franciscan Missionaries of Our Lady Health System (“FMOLHS”), the largest health system in the U.S. state of Louisiana.

The contract, based on a transaction licensing model, will see Pro Medicus’ Visage 7 technology implemented at FMOLHS’s five acute care and specialty hospitals. Once fully implemented, Visage 7 will be a key component of FMOLHS’s enterprise viewing platform and will be used for primary diagnoses, enterprise distribution and access to radiology images by over 2,000 physicians via the system’s new electronic health record (EHR).

FMOLHS is also a shareholder of ROi, a leading US health care supply-chain organization with this the second deal completed under the Visage/ROi agreement announced in April of this year.

Planning for the project is scheduled to begin in the first quarter of FY2017, with the first phase of the implementation to commence in the 2nd half of FY2017 to coincide with the rollout of FMOLHS’s EHR. It is estimated the project will take 12 months to complete.

The FMOHLS sale builds on the four large enterprise system deals Pro Medicus has won in the previous 12 months. These include the University of Florida Health in April 2015, Allegheny Health Network in September 2015, a large government-run hospital in Germany in November 2015 and Mercy Health announced in April 2016.

Dr Sam Hupert, Pro Medicus Chief Executive Officer said, “This deal demonstrates the benefits of the group purchasing deal we recently made with ROi. By having the agreement in place we were able to significantly streamline the sales and contracting processes with FMOLHS saving both parties a large amount of time and resources. It also means we will expand our footprint to the southern states of the U.S. quicker than would otherwise be the case enabling us to build on our recent successes in the North American market.”