Telstra Health, the digital health arm of Telstra in Australia, has agreed to purchase a significant stake in PowerHealth, which provides healthcare and hospital software solutions.
The deal will allow Telstra Health to make use of PowerHealth’s established international business and will also support the expansion of its global footprint.
Founded in 1995, PowerHealth provides billing, budgeting, costing and revenue solutions for hospitals and other healthcare enterprises.
The company has established its presence in Australia and Canada and also has substantial operations in Ireland and the Middle East.
Its software solutions support activity-based funding, a method used to classify hospital clinical activity and allocate funding in more than 20 countries such as the US, South Korea, Japan, Canada, Australia, New Zealand and many countries across Europe.
PowerHealth 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.”
Completion of the transaction is subject to regulatory approval and is expected by the end of the second quarter of next year.
Upon completion of the deal, Telstra Health plans to establish a development hub in Adelaide, recognising PowerHealth’s Adelaide base and depth of expertise and talent in South Australia.
Telstra Health managing director Professor Mary Foley said: “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.”