News: Pro Medicus inks $8M deal with US health network

Pro Medicus (ASX:PME) should trade higher after signing an A$8 million, seven-year contract with WellSpan Health – a large regional health network in the United States.

Under the agreement, PME's Visage 7 technology will be used throughout the WellSpan network for primary diagnosis, as well as clinical distribution of diagnostic images.

Visage 7 enables even the largest imaging organisations and health systems to transform the interpretation and delivery of medical images.

Visage 7 has a unique ability to deal with the extremely large image files created by modern radiology equipment.

The contract will see WellSpan use Pro Medicus’ Visage 7 technology as a core component of its new enterprise imaging platform for the next seven years, and possibly longer.

Impressively, WellSpan operates the region’s only accredited Level 1 Trauma Center and Primary Stroke Center, and spans 93 patient care locations and a network of four hospitals.

WellSpan serves a patient population of more than 650,000 people, has more than 11,000 employees, and is consistently ranked a top 100 US integrated healthcare network.

Earlier this year, PME signing another contract with another large US health network, again incorporating Visage 7 technology.

This contract covers a six-year term with a base contract value of $20 million, and potential upside as the technology is expanded throughout the health system.

Pro Medicus is also in a five year agreement with one of the world’s largest radiology groups, Virtual Radiologic.

The company has a global product platform, strong balance sheet backing and is capped at $100 million.