Telstra Health a small drop in big pond but targeted for growth
Telstra Health was highlighted as one of the company's long-term growth businesses in Telstra's 2015 annual report released today, which showed the telco giant swimming in $26 billion in revenue for a net profit of $4.23b for the 2014-15 financial year.
The Telstra Health division, formally launched as a standalone business unit in October 2014 but which had been actively acquiring companies in 2013, contributed $78 million in revenue for the 2014-2015 financial year, up from about $40 million the previous year.
While it is only small change in comparison to the enormous Telstra Retail arm, Telstra Health is one of four longer-term growth opportunities outlined in the annual report, along with Telstra Media, the Telstra Software Group and Telstra Ventures.
Acquisitions and investments made during the financial year include the global health analytics firm Dr Foster for an undisclosed sum, aged care software vendor iCareHealth for $26m, hospital software vendor Emerging Systems for $15m, and GP desktop and hospital software vendor CloudMed for $19m.
This is in addition to acquisitions made in the previous year, including $44m for DCA Health (now HealthConnex) and $27m for its 50 per cent stake in Fred IT.
Telstra Health also formally launched its ReadyCare telehealth service in July in a joint venture with Swiss firm Medgate. The annual report reveals that Telstra holds 87.5 per cent of equity in ReadyCare, with Medgate holding the remaining 12.5 per cent.
While only $2 million was invested in ReadyCare in the 2015 financial year, a Telstra spokesperson said this would ramp up as the service established itself. It currently has 20 part-time GPs on the books.
Telstra says the division is now able to offer solutions for primary care, aged and residential care, hospitals, radiology and pathology, pharmacy, indigenous care, specialists, analytics and telemedicine.
“In addition to these investments and acquisitions, the business has been able to bring a number of new solutions to market to solve key health challenges,” the company says, highlighting the launch of the MyCareManager home telehealth platform in April 2015.
In the last 18 months Telstra Health has completed 15 acquisitions, investments and distribution agreements, the company says.
It recently added Melbourne-based data analytics firm Health IQ to the roster, as well as announcing new roll-outs for its Communicare software package in indigenous health and a strategic alliance between Emerging Systems and oncology software specialist Charm Health.
Posted in Australian eHealth