Telstra Health has entered into an agreement to invest a majority stake in PowerHealth, a global leader in healthcare and hospital software solutions.
PowerHealth is a specialist provider in billing, costing and revenue solutions, budgeting, safety and quality, decision support and application integration solutions for hospitals and other healthcare enterprises.
Its software supports activity-based funding – the method used to classify hospital clinical activity and allocate funding in more than 20 countries including much of Europe, South Korea, Japan, Canada, Australia, New Zealand and the United States.
Telstra Health’s Managing Director, Professor Mary Foley AM, said partnering with PowerHealth would enable Telstra Health to provide a more connected and improved digital health experience for the health and aged care providers it supports.
“Telstra Health has grown substantially over the past several years and this announcement marks a significant uplift in our capability by combining the solutions and platforms within Telstra Health and PowerHealth to provide a more sophisticated and comprehensive offering of digital health solutions to an international market.”
Established in Adelaide in 1995 by founder Patrick Power, PowerHealth has grown to be a global healthcare business with a significant presence in Australia and Canada and has substantial operations in Ireland and the Middle East.
PowerHealth’s largest customers include the province of Quebec, the Hong Kong Government’s Hospital Authority, the Kingdom of Saudi Arabia Ministry of Health, majority of Australian hospitals, Local Health Districts or Health and Hospital Services, as well as the New Zealand Government.
The investment will allow Telstra Health to leverage PowerHealth’s established international business as it moves into growth markets internationally.
The investment and partnership accelerates Telstra Health’s global growth strategy and, once the transaction is completed, will substantially increase Telstra Health’s international footprint.
PowerHealth’s Managing Director, Patrick Power, said, “Telstra Health’s wealth of expertise and experience in digital health and unique footprint brings us one step closer to achieving our mission of helping our healthcare clients to deliver the highest quality care at the lowest operational costs.
“The strategic partnership and investment by Telstra Health will allow the PowerHealth and Telstra Health teams to collaborate to encourage an even greater level of innovation and capability in finding solutions to the complex challenges across the health and care ecosystem.”
Once completed, the transaction will also see Telstra Health establish a development hub in Adelaide, recognising PowerHealth’s Adelaide base and depth of expertise and talent in South Australia.
The strategic partnership will also see Mr Power join the Telstra Health senior executive team as Head of International Growth.
The transaction is expected to close by the end of Q2FY22 subject to regulatory approval.