14 June 2022; Company Announcement – Sutter Health and WellSpan Health Contract Renewals – Acrobat pdf 113k
Highlights
- Signs two contract renewals with a combined minimum value of A$47M
- Sutter Health renews for seven years – WellSpan Health for five
- Contract renewals transaction-based with potential upside
- Renewals negotiated at an increased fee per transaction
Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly owned U.S. subsidiary, Visage Imaging, Inc., has signed two key contract renewals with a combined value of A$47M.
Sutter Health, a large IDN based in Sacramento, California has signed for a further seven years, and WellSpan Health based in Pennsylvania for a further five. Both deals are transaction-based with committed minimums and have been negotiated at a higher per transaction cost than their original contracts.
“The industry norm for renewals is for short extensions to the original contract at the same or lower price,” said Dr Sam Hupert, Pro Medicus CEO. “The fact that our clients have renewed for a full or longer term contract term at an increased price supports our belief that the Visage solution delivers unparalleled value both in terms of financial and clinical ROI.”
“Whilst it is still early days, our renewal success rate sends a positive message to the market and helps build on the network effect that we have been experiencing.”
