Telstra Health acquires UK health analytics firm

Telstra has acquired UK-based health analytics firm Dr Foster in a bid to expand its health unit.

Dr Foster, which had entered into a joint venture with the UK’s department of health in 2006, produces software used by healthcare organisations to measure their performance through the use of data.

According to Telstra Health, the acquisition will bolster its analytical capability based on Dr Foster’s expertise in comparing patient outcomes from hospitals that consider details such as medical history, age and other factors. 

The deal is the latest in a string of health-related acquisitions and partnerships that the telco has made in the past 18 months. Telstra entered the healthcare sector in October 2014 when it turned its health-services division into the standalone ‘Telstra Health’ unit. 

Telstra Health will continue to build the Dr Foster business in Australia and the UK as well as pursue international opportunities to integrate the product with other e-health solutions. The company had previously secured the exclusive rights to provide Dr Foster products and services in Australia in December 2013.

Terms of the agreement were not disclosed but industry sources have estimated the deal at between $40 million to $50 million. 

“We have had a successful relationship as the exclusive reseller of Dr Foster in Australia and when the opportunity arose to purchase the company, we saw it as a logical next step, acquiring not only a leading and innovative business but also the experience and skills that will help us compete on the global stage,” said Shane Solomon, Telstra Health’s managing director. 

“Health analytics is a key ingredient to improving efficiency, safety and outcomes for patients, providers and health insurers. The acquisition of Dr Foster aligns with Telstra Health’s strategy to create a truly connected health care system and become a leading provider of integrated e-health solutions,” he said.