IBA Health wins healthy Malaysian Government deal

ASX-listed IBA Health has been selected by the Malaysian Government, as part of a consortium, to supply and implement a total hospital information solution for Malaysia University Teaching Hospital in a deal worth $18.5 million.

The health sector IT solutions provider expects to receive $9.3 million for software and implementation services with recurring license fees of $1.1 million per annum after initial warranty period of up to seven years.

It will partner with Malaysian IT company FSBM’s (formerly known as Fujitsu Systems Business) associate company Technitium, who will recieve the rest of the money for the contract.

Steve Garrington CEO of IBA Health said in a statement that the company would provide a suite of solutions to move University Teaching Hospital to a paperless environment.

“We will provide solutions to fully integrate the hospital’s administration, clinical patient records, laboratory, pharmacy and radiology records. The hospital has a significant volume of inpatients and out patient records which also needs to be streamlined.”

Domestically the company does its own implementations, however with overseas projects IBA will work with partners.

“Like most contracts we are providing the software however the implementation will be a combined effort with our Malaysian partner FSBM," Garrington said. "Being a local company will allow FSBM to have a greater affinity with the customer."

According to Carrington this contract has been IBA Health’s biggest win to date. While it has been successful in the Australian private health sector, IBA is looking to drive business in South-East Asia and China.