Colombian radiology services contract enables ImExHS to develop artificial intelligence and machine learning tools

ImExHS ASX IME Colsubsidio Colombia
ImExHS' contract with RIMAB will allow access to large data sets for further development and testing of artificial intelligence and machine learning tools.

Australian medical imaging company ImExHS Limited (ASX: IME) has signed a 12-month, $3.93 million contract with RIMAB SAS for the delivery of imaging diagnostic services to Colombian healthcare network Colsubsidio.

RIMAB is a radiology services entity wholly-owned by ImExHS co-founder Dr German Arango and will subcontract its services to ImExHS for the duration of the agreement.

Colsubsidio is an existing ImExHS client and owns one of the largest groups of radiology facilities in Colombia.

In October 2018, the healthcare group signed a deal with ImExHS to modernise its radiology facilities over a five year period.

AI development

Today’s contract will see RIMAB provide 47 radiologists to 19 of Colsubsidio’s sites and will enable ImExHS to access data for the development of artificial intelligence (AI) and machine learning (ML) tools.

Specifically, it will provide ImExHS with a “strategically-important opportunity” to develop, test and apply AI and ML tools within a field team of radiologists generating large data sets for the interpretation of radiology images.

“A widely-held industry view is that the application of AI and ML will significantly change the nature and structure of the radiology value chain over the next decade,” said ImExHS chairman Tom Pascarella.

“This contract provides (us) with a ‘working ecosystem’ opportunity to evaluate options for optimal AI, ML and workflow productivity tools with a view to addressing future changes to industry structure, and the evolving value chain for radiology outsourcing models.”

Mr Pascarella said the location of Colsubsidio’s 19 sites will also assist ImExHS with the development of tele-radiology and workflow capabilities and applications.

Contract extension

The new contract will be for an initial 12-month period, and Colsubsidio will retain the option to extend it for a second and third year.

In the event that Colsubsidio does not renew past the first year, RIMAB has been guaranteed a minimum monthly payment to cover related platform-as-a-service equipment financing costs of $792,000.

The monthly payment will reduce RIMAB’s financial exposure on the pool of equipment required for the contract.

Revenues associated with the contract will flow to ImExHS, minus a 2% RIMAB management fee, some direct costs and government-mandated withholding taxes.

At midday, shares in ImExHS were trading 7.81% higher at $0.069.

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