Telstra has acquired a health analytics company in a deal reportedly worth $40-50 million as it builds out its health tech division.
UK-based Dr Foster was snapped up by Telstra Health after it previously secured distribution rights to the company’s software, which is used by healthcare providers to rank and compare performance of hospitals and staff.
Telstra has not disclosed the terms of the deal but the AFR reported industry sources indicated the telco had paid between $40 million and $50 million for the company.
Part-owned by the UK Department of Health, Telstra Health will continue to build out the Dr Foster business in Australia and the UK, as well as pursue international opportunities. The company already has contracts in place at 15 hospital services in Australia.
In October 2014, Telstra launched its new healthcare unit. It expects health spending to grow to $200 billion by 2020 and sees Australia struggling to provide reliable services in the face of an ageing population and a rising instance of chronic diseases.
Telstra tipped $100 million into its healthcare business division to provide e-health technology which connects patients with doctors and doctors to other providers. Telstra’s health division also includes e-prescription exchange provider Fred IT and health appointment generator Health Engine.
Led by Shane Solomon, Telstra Health’s managing director, the latest Dr Foster acquisition will add to its analytical capability.
“We have had a successful relationship as the exclusive reseller of Dr Foster in Australia and when the opportunity arose to purchase the company we saw it as a logical next step, acquiring not only a leading and innovative business but also the experience and skills that will help us compete on the global stage,” Solomon said.
“Health analytics is a key ingredient to improving efficiency, safety and outcomes for patients, providers and health insurers. The acquisition of Dr Foster aligns with Telstra Health’s strategy to create a truly connected health care system and become a leading provider of integrated eHealth solutions.”
Dr Foster co-founder Roger Taylor will stay on as a consultant.