1st Group to provide health services portal for Totally Smiles dental network
Digital health group 1st Group has inked a deal with Smiles Inclusive to provide its MyHealth1st platform for 55 dental practices across Australia.
Australian digital health group 1st Group (ASX: 1ST) has clinched a deal with Smiles Inclusive (ASX: SIL) to provide digital patient engagement services to the Totally Smiles dental network.
Under a newly signed material agreement, 1st Group will support 55 Totally Smiles dental practices across Australia with its MyHealth1st health services portal.
Rollout will commence immediately and is anticipated to be fully operational within a month.
According to the company, MyHealth1st is an integrated platform that provides an “easy-to-use” online search and appointment booking service and offers a range of value-added apps and services to facilitate digital patient and customer engagement.
The deal also involves 1st Group providing digital marketing services that are expected to generate leads, drive practice efficiency and new patient growth, and improve patient retention.
This latest agreement expands on the MyHealth1st platform’s growth into the dental market, which also includes major groups such as Primary Dental, Pacific Smiles Group, National Dental Care and 1300 Smiles.
The company did not reveal the full value of the contract but said in addition to setup fees, monthly revenue is anticipated to be in the range of $1,000-$2,000 per site/practice for recurring advertising and usage fees, making the contract worth potentially up to $110,000 per month for 55 practices.
The duration of the agreement was also not disclosed, but 1st Group said part of the services being provided will be subject to a commercial review by Totally Smiles six weeks after going live.
“Thereafter, the scope of services to be provided pursuant to the material agreement can be expanded or reduced by Totally Smiles,” it stated.
1st Group managing director and co-founder Klaus Bartosch said the deal delivers on the company’s key strategic priorities of “driving revenue growth including annual recurring revenues and extending our leadership position in the key dental vertical”.
“We have developed over the years a unique capability in the healthcare market evidenced by the ongoing successful major deal wins, which is rooted in our deep focus on ensuring we deliver the business outcomes our customers want,” he said.
“With this additional scale, we have more than trebled our dental market presence this year, making dental one of our fastest growing categories today,” Mr Bartosch added.
Totally Smiles turnaround
Totally Smiles, the operating subsidiary of Smiles Inclusive, owns 56 dental practices running from 82 sites throughout Australia.
Its operations include fixed location practices as well as mobile dentistry and dentures services.
In a shareholder update on Monday, Smiles Inclusive announced operational changes and initiatives at Totally Smiles, aimed at “turning the business around” after a disappointing year.
Totally Smiles chief executive officer Tony McCormack admitted the company’s initial approach was “not a success and has left some enduring and debilitating legacies”.
He said the company has recently been “reviewing and fine tuning the business model and strategy for the future, assessing and changing suppliers, staff and some leaders, raising capital, maintaining, developing and extending relationships, not to mention [reviewing] a swathe [of] litigation and inappropriate contractual arrangements”.
In today’s announcement, Mr McCormack said the MyHealth1st services fit well with the other initiatives Totally Smiles has underway.
“The Myhealth1st services will provide increased new patient acquisition, patient engagement services and an enhanced online patient booking experience and enable us to improve our operations through patient feedback and significant capabilities to reactivate past patients,” he said.