Company’s massive move into health service 'disruption'
Listed digital health company 1st Group Ltd run by Tweed-based director Klaus Bartosch is poised for a massive expansion of its online services after signing on three key customers.
The small cap, which is led by Tweed-based director Klaus Bartosch, provides platforms, integrating with practice management software, that enable companies to take online appointments.
It raises revenue through a mixture of subscriptions, usage, new patient and advertising fees.
The company says the health sector is ripe for disruption with 50 million appointments, for dentists, doctors, psychologists and other professions, being booked in Australia each month by telephone.
Mr Bartosch in an investor briefing this week told shareholders that Medibank, together with Benestar Group and St Vincent's Health Australia coming on board could see between 3000 and 6000 new sites added to its platforms in the next 12 months.
"The market reaction to date working with these new customers has been phenomenal and we are quite excited about what we expect to be quite significant additional growth over the next 12 months," Mr Bartosch said during an investor call.
He said the deal struck with Medibank enables dental practices that are on the MyHealth1st website to be available to Medibank's 2.8 million members for booking via the My Medibank mobile app.
Nine hundred preferred providers are being targeted in phase one with the company hoping to move beyond dental into other healthcare sectors once the platform has been "validated".
"The take-up by providers during the pilot program is incredibly positive and the appointments being booked by members through the app are also great numbers," Mr Bartosch said.
He said the deal with Benestar, which provides employee assistance programs to companies, will be delivered through MyHealth1st and is designed to bring 2600 psychologists to the platform by September.
New patients booked via MyHealth1st will attract a one-time fee of $49.50 charged to psychologists or $33 for existing Benestar patients.
"There is no guarantee we will get all of those onto the platform in that time frame (by September) but certainly they are willing to support and fund our growth and development in that particular case."
Few details were offered relating to the arrangement with St Vincent's Health Australia.
Mr Bartosch said the company, which earned revenue of $963,000 for the March quarter, is expected to be cashflow positive in the "near term".
It has provided ACV (annualised contact value) guidance for 2H19 of between $5.1 million and $5.7 million.
The company's platforms, such as PetYeti and MyHealth1st, power bookings for a huge number of websites and companies, including Greencross Vets, National Veterinary Care, Priceline Pharmacy, Amcal, Optical Warehouse and others.
Apart from its online booking platforms, 1st Group's other products include tools to enable patients to check in easily or provide feedback via SMS.
The company says it earns average revenue of $40 per month but that increases to $130 for new business.