Kiwi digital health sector ‘vibrant’ and ‘dynamic’

NEWS  - eHealthNews editor Rebecca McBeth

New Zealand's digital health sector is vibrant and easier to navigate than comparable markets, says the chief executive of global health technology company Lanas.

Howard Beggs spoke to eHealthNews as the company announced it is increasing its local footprint with a $150 million investment that includes the acquisition of practice management platform indici.

The deal adds to Lanas’ existing New Zealand portfolio, which includes HealthLink, Toniq and KonnectNET, bringing the company's total investment in the country to nearly $200 million once the transaction is complete.

“This investment is the largest thing we have done. We have recapitalised the business with one of the world's biggest private equity investors and they have provided the funding for our next phase of growth,” Beggs explains.

Lanas operates in a number of jurisdictions globally and Beggs says New Zealand stands out for the speed at which decisions get made and the passion of the people driving digital health reform.

"There is a vibrancy and an excitement that there is change happening here and it is good change," he says.

The acquisition of indici adds more than 250 healthcare organisations and around 2 million patient records to Lanas’ local operations.

The company has been operating in New Zealand for a decade and has seen consistent double-digit growth in the market for four to five years.

Beggs says government momentum around summary care records, electronic prescribing and digital front doors, as some examples, are all positive signals of a market in motion.

"I find it more dynamic than other healthcare systems: decisions are made around projects quite fast and with a lot of focus,” he explains.

The $150 million investment covers product development, AI-enabled capabilities, infrastructure and interoperability, as well as potential further acquisitions. Lanas employs 160 people in Auckland and Christchurch, with more roles expected as the programme expands.

Beggs says that one of the priorities is modernising Toniq, a 25-year-old pharmacy platform developed out of Christchurch, to a cloud-native architecture. 

HealthLink, which carries 150 million healthcare messages annually across primary, secondary and government providers, will also get ongoing infrastructure investment.

"Greater cooperation, collaboration, and interoperability is what the future holds," Beggs says. 

"The market is open to it and the ecosystem is good for it."

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