Telstra Health is buying GP clinical and practice management software company MedicalDirector for $350 million. 

MedicalDirector provides ‘software as a service’ (SaaS) to the healthcare industry, including electronic health records, patient, and practice management, billing, scheduling, care coordination, medicines information and clinical content.

It currently supports about 23,000 medical practitioners through about 80 million consultations a year.

Telstra Health chair Brendon Riley says the acquisition of MedicalDirector will help the company create a connected and improved digital health experience for users.

“MedicalDirector supports consultations by medical practitioners through a comprehensive patient medical record, including electronic prescriptions, options for virtual consultations, patient care plans, real time alerts about drug safety and drug interaction, and a range of other functionalities,” Mr Riley says.

“Practice management is an important addition for Telstra Health in providing quality solutions and supporting them to deliver care. Telstra Health has transformed substantially over the past five years and this announcement reflects its continuing maturity as a business.

“It also reflects its continued growth into a global business, including strengthening our existing presence in the UK where MedicalDirector has been establishing itself in recent years.”

Telstra Health managing director Professor Mary Foley says the deal will make the company a leading partner to the health and aged care sectors.

“Patient care journeys move back and forth across home, clinics, hospitals, aged-care, and pharmacies. This acquisition helps realise our vision to connect and coordinate across the continuum of care, enabling smoother experiences for those who need it and provide it,” Dr Foley says.

“Digital solutions support operational efficiency and effectiveness and help clinicians and other care providers solve some of the complex problems they face in the delivery of care.”

The deal is expected to be completed in Q1 FY22.

The MedicalDirector acquisition follows Telstra Health’s recent plans to buy a majority stake in global healthcare organisation PowerHealth.