Telstra beefs health division with DCA Health buyout

Telstra has picked up the health division of Database Consultants Australia to add to its burgeoning health unit.

Telstra has bought out the health division of Database Consultants Australia (DCA) in a deal understood to be worth approximately AU$40 million.

The division provides IT services to over 12,000 GPs, 170 aged and community service providers, and 20 health service outlets. The products broadly cover electronic health management systems, with the division recently working on making its applications compatible with the Australian government's personally controlled e-health record system.

The terms of the deal were not disclosed due to commercial sensitivity, but a source close to the deal said it is worth approximately AU$40 million.

In addition to the recent investments in HealthEngine and e-health operator IP Health, Telstra's head of health Shane Solomon said DCA Health will help grow the new division within Telstra.

"Connectivity will play a crucial role in the future delivery and management of health services. The future of healthcare will see more patients cared for at home, and technology will play a critical role," he said in a statement.

"As technology evolves and our demography changes, our hospitals, medical centres, pharmacies, and health professionals will need better ways of serving patients, and we are looking to play a part in enabling this.

Solomon said Telstra is aiming to play a "significant role" in care coordination through improved connectivity to health services.