4 April 2016; pdfCompany Announcement Pro Medicus Signs Mercy – Acrobat pdf 169k

Key Points

  • Mercy Health System to use Pro Medicus’ Visage 7 technology for primary diagnosis and distribution of medical images
  • Seven-year deal with base value to PME in excess of A$21M
  • Mercy has 46 acute care and specialty hospitals spanning four US states
  • Transaction-based model with potential upside
  • First 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$21 million, 7-year contract with Mercy Health System (‘Mercy’), the seventh largest Catholic health care system in the USA.

The contract, based on a transaction licensing model, will see Pro Medicus’ Visage 7 technology implemented across Mercy’s 46 acute care and specialty hospitals, supporting more than 2,000 physicians and 40,000 employees across the mid-west states of Missouri, Arkansas, Oklahoma and Kansas.

Once fully implemented, Visage 7 will be a key component of Mercy’s enterprise viewing platform and will be used for primary diagnoses, clinical distribution and access to radiology images via Mercy’s electronic health record (EHR).

Mercy is also the founder and major shareholder of ROi, a leading US health care supply-chain organization. As part of this deal Visage Imaging has entered into a master purchasing agreement with ROi. The deal with Mercy will be the first completed under this new ROi agreement. This paves the way for all ROi members to benefit from this group-wide purchasing agreement.

Planning for the project is scheduled to begin in the last quarter of FY2016, with the first phase of the implementation to commence in the first quarter of FY2017. It is estimated the project will take between 12 to 16 months to complete.

This is the fourth significant enterprise imaging deal that Pro Medicus has completed in the past 12 months, following similar deals with:

  • University of Florida Health in April 2015 (A$9.5 million, seven-year contract)
  • Allegheny Health Network in September 2015 (A$11 million, five-year contract)
  • Large government-run hospital in Germany in November 2015 (A$3 million five-year contract)

This brings the minimum value of contracts won over the past 12 months to A$44.5 million.

Dr Sam Hupert, Pro Medicus Chief Executive Officer, said, “This is one of the biggest deals we have won to date. Not only does it significantly add to our growing footprint in the enterprise hospital space, it further endorses our belief that we have unique technology that is ideally suited to address the needs of the large and diverse North American market. By using Visage 7, Mercy will be able to transform its use of medical imaging across its large and distributed health enterprise, paving the way for other ROi members to do the same.”