SYDNEY: Australian largest telecommunications provider Telstra looks to grow profits outside its traditional businesses as signed agreement to add Medibank Private’s Anywhere Healthcare network to its e-health arsenal.
Anywhere Healthcare was established in 2013 and is designed to help people in regional and remote areas, or those with mobility issues, get access to specialist doctors and healthcare over video conferencing.
The network has over 1600 general practitioners and aged-care partners as well as 26 specialists, currently offering around 600 to 700 consultations per month.
“It’s an emerging and growing business, but it is still quite small. That’s okay,” Telstra group executive retail Gordon Ballantyne told Fairfax Media.
Telstra is planning to invest in and expand the Anywhere Healthcare business to take advantage of Australia’s growing healthcare spending and it’s ageing population.
“It’s a huge growth area in how we better serve and deliver better health outcomes in remote, regional aged care facilities and community health settings,” Mr Ballantyne said.
“Today it’s about $4.5 billion of cost to the state to support all those aged and community care centres and that’s going to grow by 100 per cent by 2020. It’ll be about $11 billion in cost to taxpayers.”
According to the Australian Government’s Institute of Health and Welfare, the country spent more than $120 billion on health in 2009-10, averaging out to around $5479 per person. This number is expected in increase significantly as the population ages and new treatments, drugs and technologies are made available to patients.
Neither Telstra nor Medibank would disclose how much the deal was worth. However, as it was not announced to the Australia Securities Exchange, it likely is not a material amount.
Anywhere Health currently has six employees that will move to Telstra as part of the acquisition.
Last week, Telstra announced the acquisition of British health analytics firm Dr Foster, in a deal believed to be worth between $40 million to $50 million.
Telstra has spent more than $100 million on health-related acquisitions over the last 18 months.
In the six months to December, Telstra Health contributed $31.5 million in revenue.
Mr Ballantyne said Telstra will still work closely with Medibank to take advantage of providing services to the health insurers’ customers.
Medibank chief operating officer David Koczkar said the company was proud of the foundation it built in the online healthcare business.
“Telstra Health will provide the additional support, focus, and expertise required to expand this important service and we look forward to working together to develop further opportunities for Anywhere Healthcare,” he said.
