pdfPro Medicus Signs A$9.5 Million Deal with University of Florida Health Network – Acrobat pdf 128k

21 April 2015

Key Points:

  • UF Health to use Visage 7 technology for primary diagnosis and clinical distribution of medical images
  • Seven-year deal, with base value to PME of A$9.5 million
  • Significant win at prestigious university/academic institution
  • Hybrid of capital and transaction-based models with potential upside

Leading imaging IT provider, Pro Medicus Limited [ASX: PME] today announced its wholly owned US subsidiary, Visage Imaging Inc., has signed a A$9.5 million seven-year contract with University of Florida Health — a large university health system in Northern Florida. The deal furthers the penetration of Visage 7 technology in the university/academic hospital space, a key area of the North American enterprise imaging market.

The contract will see Pro Medicus’ Visage 7 technology used for primary diagnosis across UF Health, as well as clinical distribution of diagnostic images to thousands of physicians throughout the UF Health care network.

UF Health comprises two health campuses: UF Health Shands Hospital in Gainesville, FL, incorporating UF Health Shands Cancer Hospital and UF Health Shands Children’s Hospital, and UF Health Jacksonville in Jacksonville, FL. UF Health provides comprehensive high-quality patient care, from primary care and family medicine to subspecialty tertiary and quaternary services for patients with highly complex medical conditions. The faculty of the UF College of Medicine includes internationally recognised physicians whose expertise is supported by intensive research activities. Each year patients come to UF Health from around the world, across the US, and from all 67 Florida counties.

“After 18 – 24 months of careful analysis by a team of technologists, physicists, radiologists and clinical providers we are happy to be working with Visage to provide the visualization component of our new enterprise imaging solution,” said Anthony A. Mancuso, M.D., professor and chairman, UF College of Medicine department of radiology. “We are extremely pleased with Visage’s server-side rendering architecture, which allows for the transfer and manipulation of images by all those with a need to access images to rapidly and completely arrive at proper medical decisions. These images can be securely accessed using handheld devices, as well as fixed workstations. This will serve our most sophisticated clinical providers, as well as it does those who just wish to simply view images or share them with their patients.”

Dr Mancuso continued, “We anticipate Visage will markedly improve the efficiency of our clinical providers in their outpatient environment and will allow more effective radiologist to clinical provider communication in high acuity situations.”

The contract, based on a hybrid licensing payment model, will see UF Shands opting for a capital model and UF Jacksonville electing the operational/transaction-based option.

Dr Sam Hupert, CEO of Pro Medicus said, “This is another significant milestone for us in the enterprise university hospital market and is further proof that our Visage 7 technology has the functionality, scalability and flexibility to meet even the most demanding requirements of a large, distributed university health system such as UF Health.”

The deal comes on the back of a number of major contract wins over the past 12 months. These include a six-year contract with a large US health network announced in late April 2014, a seven-year deal with WellSpan Health, a regional health network in the Northeastern US in November 2014 and a five-year contract with Zwanger-Pesiri, a highly-respected radiology group and outpatient imaging provider on New York’s Long Island in January 2015.

Dr Hupert said: “The Florida deal demonstrates again that our Visage 7 technology can provide a solution to a broad array of radiology practices. We now have major sales in every segment of the US market, ranging from remote reading/teleradiology groups and outpatient imaging centres, through to some of the largest health systems in the country. Each deal we win is not only important to us in its own right, but further consolidates our footprint and opens up new opportunities for us.”