IBA hooks up IPTV venture in China

AUSTRALIA’S largest ASX-listed eHealth company IBA has entered a joint-venture in Shanghai that will deliver healthcare information services throughout China using the internet and internet protocol television (IPTV).

The joint-venture, to be called Shanghai People’s Health Information Technology, will build a private internet-based network that will link doctors and patients, enabling consultations via the internet.

The venture will also provide a “national interactive health channel” on China’s only IPTV service, BesTV.

IBA owns 51 per cent of the joint venture and will contribute up to $7 million, based on future earnings and related working capital requirements.

The joint venture has acquired the intellectual property and support and maintenance contracts for an administrative hospital information system currently installed in over 180 hospitals –representing 90 percent of tier one hospitals and 20 per cent of tier two hospitals in Shanghai and surrounding provinces.

It also has the rights to provide health information systems to eight planned Harvard Medical Centre hospitals, two of which are currently under construction.

Shanghai People’s Health’s first customer will go live at the end of March – following trials in December and January – with an optical fibre, IP based network that will link over 20,000 families with doctors through 11 hospitals and community centres in Shanghai’s Changning District.

The Changning private network will initially provide the capability to deliver in-home and out of hospital consultations linking health professional and patients with community clinics and specialists located at the larger public hospitals.

With trials now complete, the joint venture will launch China’s first Health Channel in May.

The service not only provides more channels than traditional terrestrial television, using full size MPEG-4 video coding.

The service will provide health information, in-home video and audio consultations, video on demand capabilities and relevant health media content, including paid advertising.

The Health Channel will be distributed through an exclusive contract with BesTV, which is jointly owned by Shanghai Media Group, China’s second largest media company, and China Telecom, the largest fixed line telephone company.

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IBA to get into bed with UK’s iSoft

Melbourne-based software maker IBA Health has confirmed it is seeking to buy UK giant iSoft in a deal that would create one of the biggest health industry back office specialists outside of North America.

The company has issued a statement confirming it is in discussion with the iSoft Group in London which may lead to an all-share offer to buy the UK group.

IBA Health also confirmed it was in discussion with “certain financial institutions” to obtain funding for such an acquisition. IBA said such funding would refinance the companies existing debt facilities and provide “adequate working capital for the ongoing requirements of the enlarged group.”

Though the company confirmed its interest in pursuing iSoft, no price tag has been attached to any possible transaction, though some analysts have said such a deal would be would about A$500 million.

Though trading at close to its 52-week high, IBA was off slightly on news it was seeking to buy the troubled UK firm. iSoft shares on the London Stock Exchange, which have struggled, bounced almost 10 per cent on confirmation that IBA had begun talks to buy the firm.

IBA Health is the largest health information technology company listed in Australia, with a market capitalisation of more than A$560 million.

The company provides information and communication solutions to connect providers, payers, patients and communities. IBA Health's range of systems is designed to support workflows across all health sectors including hospitals, clinics, aged and community care facilities, primary care as well as claims and payments processes.

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