Stockwatch – TELUS Health, a division of TELUS Corporation (TSE:T, Mkt cap 24.26B, P/E 17.60, Div/yield 0.38/3.86, EPS 2.24, Shares 615.48M) has announced that it is adding a new functionality to its existing health technology portfolio through its acquisition of an interest in the underlying technology that allows physicians to use a mobile device to write and deliver prescriptions for patients.
The acquisition of the product from Quebec-based ZoomMed – called ZRx Prescriber – works by accessing the patient’s insurance coverage information directly at the moment of prescription. TELUS Health said the purchase will see the Canadian healthcare technology company become the first to offer insurance coverage validation nationally at the moment of prescription.
ZoomMed said it will retain the exclusive intellectual property in the ZRx Prescriber for the United States and the United Kingdom, in the deal worth up to C$6,800,000.
TELUS Health say that the technology will provide physicians across Canada with immediate access to patients’ insurance coverage information, allowing them to prescribe within the patient’s plan parameters when possible, which, it says, will speed up the insurance claim and improve the patient’s experience during the dispensing process.
The ZRx prescriber is already used by 520 medical clinics in Quebec and Ontario. TELUS Health aims to slowly integrate the technology into electric health records used by more than 13,000 physicians across the country. The agreement will see ZoomMed’s affected Canadian employees transferred to TELUS Health, and will give the TELUS sole ownership of ZRx Prescriber and its IP in Canada.
Paul Lepage, president of TELUS Health, said the acquisition will allow the company to have a more “direct and positive impact on the patient experience”.
Telus exhibits profitable growth, robust free cash flow and a solid balance sheet. Planned capital investments have the potential to sustain future growth. The company has committed to returning cash to shareholders through its share purchase and dividend growth programs. Telus’ net income grew by 41.18%, year over year, to $0.62 per share during the most recently completed quarter. This is among the strongest growth rate in the Canadian telecom sector.
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