Medtech set to expand ManageMyHealth business in US market
Auckland-headquartered practice management software vendor Medtech Global is set to expand its presence in the US market for its ManageMyHealth portal technology following the acquisition of the remaining shares in Colorado healthcare cost containment firm ConSova Corporation.
While the price of the acquisition was not disclosed, Medtech Global bought a 51 per cent majority interest in ConSova in 2012 for over $US650,000.
ConSova brought in about $A2 million a year for ASX-listed Medtech Global in that year, the company's 2013 annual report shows, for a net profit after tax of about $A50,000. The company also sells its VitelMed telehealth solutions in the US through its Medtech Global USA arm.
Total revenue from the US in 2015 was $4,165,000 out of its overall revenues of $19,523,000, the majority of which comes from its dominant position in the New Zealand PMS market.
Medtech Global executive chairman Vino Ramayah said ManageMyHealth had already been trialled and customised for the US market.
“ConSova has well established relationships with large US healthcare organisations like Kaiser Permanente and Cigna and it also provides solutions and services to major employers, some of whom are Fortune 500 companies in respect to health benefits management,” Mr Ramayah said in a statement.
ConSova will now act as a wholly owned subsidiary of Medtech Global USA. The company funded the acquisition from its own resources.
“With offices in Denver, Colorado and Nashville in Tennessee, Consova gives us immediate access to emerging healthcare innovation centres,” Mr Ramayah said. “It provides us with an exciting platform for growth in the largest healthcare market in the world.”
ManageMyHealth was created in Auckland and is being progressively rolled out in many general practices – particularly in New Zealand where it has an estimated 85 per cent share of the GP market but also in Australia – that use the Medtech32 PMS and its cloud-based replacement Evolution.
The portal allows practices to provide selective access to patients to their medical records and to book appointments, request repeat prescriptions and view their lab results online.
Medical practices can also use it to communicate with patients and securely share patient medical information with after-hours, emergency and other primary care clinicians.
Mr Ramayah said he will lead a team of veteran industry experts at ConSova as its interim CEO and chairman.
Posted in New Zealand eHealth