14 March 2017; Company Announcement – Primary Health Feb 2017 – Acrobat pdf 180k
- Five-year deal with Primary Health Care Limited, one of the largest diagnostic imaging networks in Australia
- PME to provide Visage RIS to Primary Health Care’s 141 diagnostic imaging sites
- Will deliver 11% uplift to PME’s FY16 revenue each year for 5 years
- Transaction-based agreement with potential upside
Leading healthcare imaging company Pro Medicus Limited [ASX: PME] today announced it has signed a five-year agreement with Healthcare Imaging Services, the diagnostic imaging division of Primary Health Care Limited [ASX:PRY], one of Australia’s leading ASX-listed healthcare companies.
The agreement will see Pro Medicus install its Visage RIS (radiology information system) throughout the Healthcare Imaging Services network. The major functions of the RIS software includes patient scheduling, billing and back office practice management functions.
Healthcare Imaging Services is one of Australia’s largest diagnostic imaging networks. It comprises 141 diagnostic imaging sites throughout Australia, with operations in New South Wales, ACT, Victoria, South Australia, West Australia and Queensland.
The five-year transaction-based agreement is expected to deliver an uplift equivalent to 11% of the Company’s FY16 revenue for each year of the contract.
Dr Sam Hupert, CEO of Pro Medicus said, “This is one of the largest RIS deals in Australia, so it is very significant for us. With this contract we will regain our dominant position in the Australian RIS market.”
Chief Executive of Healthcare Imaging Services, Dean Lewsam, said: “We undertook an extensive evaluation process before deciding on the Visage RIS from Pro Medicus.”
“Visage RIS has the functionality and scalability that a large geographically diverse group such as ours requires. We expect a national system will help deliver significant efficiencies across our business.”
Implementation is scheduled to commence toward the end of the second half of FY2017 and is estimated to take 12-14 months. The five-year contract will follow implementation. The agreement has potential for upside beyond the initial contract as Healthcare Imaging Services continues to grow its radiology business.
“We have always believed that there were still opportunities for us in the RIS market, and this confirms our belief,” Dr Hupert said. “It also vindicates the significant investment we made in our new RIS platform and positions us well for other opportunities in both public and private healthcare markets in Australia.”