Citadel Group has waved off concerns that its $60-million laboratory IT system has reached “end of life” to secure another year with Queensland Health.
The Canberra-based IT services provider’s long-running deal with the state health department was due to expire in 2022, but will now run on until 1 January 2023, meaning its Auslab Evolution software will operate until 2029.
Nearly two years ago, Citadel Group had flagged to shareholders that Queensland Health was intending to move to a global laboratory information system (LIS) following the Auslab’s expiry.
However, the extra time granted will now allow the publicly-listed Citadel to deliver an update to the lab test processing system, the company’s new managing director Mark McConnell informed shareholders.
“We are very proud of our history with Queensland Health, and this extension provides one of our longest-standing clients with the security of service, and an opportunity to see the benefits of our latest feature-rich enterprise laboratory software,” he said.
Queensland Health had originally flagged its intention to overhaul the Auslab system in February 2016, describing it at the time as: “end-of-life and is unable to meet the current and future needs of laboratory services, in particular, Pathology Queensland”.
As reported by ITNews, the system was due to reach end-of-life in 2020, but replacing it was forecast to take around seven years.
Citadel had originally spent $60 million on buying Melbourne-based health services provider, PJA Solutions to gain access to the Auslab technology in 2015.
The news of the extension will come as a welcome prospect for Citadel following a turbulent and “disappointing”year that saw its earnings and profits drop and its formerMD Darren Stanley step down after three years.