IBA Health posts record earnings

By: Karen Dearne

IBA Health Group has claimed the title of Australia's leading health software company with revenues of $361 million for the 2008 financial year, up by 381 per cent over the previous year.

Chief executive Gary Cohen announced a net profit of $49 million, up 113 per cent, after completing the takeover of its former rival, iSoft, in October last year. However, the profit result included $35 million in acquisition, integration and other one-off costs.

The rise in revenue, from $75 million in 2007 to $361 million, reflected the company's expanded global footprint and continuing strong income from existing products.

"Twelve months ago we were an IT company focused on the delivery of healthcare solutions, primarily in the Asia-Pacific region," Mr Cohen said. "Fast-forward to the present and we are one of the largest providers of healthcare solutions worldwide, with more than 13,000 customers in 35 countries and nearly 3800 employees.

"With operations across five continents, our business now generates more than 85 per cent of its revenue from outside our traditional territories in Australia and Southeast Asia."

IBA, which has retained the iSoft brand for its healthcare products, expects its next-generation web-based architecture, Lorenzo, to become the "global standard in healthcare IT systems".

Lorenzo has been deployed to early adopter sites in Britain's National Health Service IT reform program in conjunction with its partner CSC, and at university hospital sites in Germany and the Netherlands.

Mr Cohen claimed that IBA was also pioneering technologies such as affordable multimedia interfaces, remote consultation systems and more advanced electronic health records.

During 2008, the company won new business in Russia, South Africa and Mexico, and in the next 12 months it plans to open new operations in Dubai and South Africa.

"Asia also presents a key growth opportunity for the business," he said. "We are planning expansion into China, Indonesia, Taiwan, Brunei, Thailand and India."

In England, IBA rolled out its iPatient Manager hosted solution to more than NHS hospital trusts, and deployed the clinical product, iCM, in several sites in the London and Southern clusters.

And in Australia, the company won new contracts with health departments in South Australia and Tasmania.