Pro Medicus locks in $98 million US contract renewal

The news: Medical imaging provider Pro Medicus has secured an eight-year contract renewal in the US from St Louis-based Mercy Health.

The numbers: The company said its wholly-owned subsidiary Visage Imaging signed the contract renewal, which has a minimum value of $98 million.

The context: Pro Medicus said the deal covers its Visage 7 Viewer and Visage 7 Open Archive solutions, is transaction-based and has been negotiated at a higher per transaction cost. CEO Sam Hupert said while the industry norm for renewals was for short extensions to the original contract at the same or lower price, the Mercy contract renewal was for a longer contract term than the original and at an increased price, showing confidence in the company’s offering.

The Melbourne-based group provides medical imaging software and services to hospitals, imaging centres and healthcare groups globally.