Why HeraMED's HeraBEAT device could replace CTG machines in emerging economies

Special Report: Brazil healthcare provider Hapvida has extended its partnership with HeraMED for a further 24 months.

Hapvida, one of Brazil’s largest health care providers and hospital owners, has extended its use of HeraMED’s (ASX:HMD) HeraCARE cloud monitoring for a further 24 months, adopting the new business model which is based on recurring monthly subscription in the form of TaaS for the Hardware and SaaS for the cloud component.

The HeraBEAT smart foetal monitor is connected to Hapvida’s Electronic Medical Record system (EMR), allowing physicians and nurses to monitor foetal heart rate data in real-time.

The extension of the partnership between Hapvida and HeraMED follows a new potential growth plan for HeraMED through the replacement of expensive CTG machines in hospitals across emerging economies.

Growth in emerging economies

Hapvida services 3.8 million people in Brazil and during 2020 the health provider undertook approximately 5000-6000 scans per month, and over 70,000 scans during the year. Compared to expensive CTG machines from other leading medical suppliers, the HeraBEAT devices are leased to hospitals alongside the SaaS HeraCARE platform. This makes the HeraMED system an appealing offering for medical facilities, particularly those without the funds to purchase expensive machines upfront.

HeraMED CEO and co-founder, David Groberman, is confident that the cost-effectiveness of the model and the success of the HeraMED system in a busy hospital setting makes it an ideal option for emerging economies.

“The 24-month extension of the HeraCARE subscription with Hapvida, and their commitment to adopt our new business model based on monthly payments for the hardware and software represents an important validation of both the HeraBEAT device and the HeraCARE real-time connected cloud, for use in a busy hospital setting. Both the device and the platform demonstrated resilience under the intensity of the constant hospital use with over 70,000 scans taken during 2020, and we are delighted to be extending this subscription,” said Groberman.

“Elsewhere in Brazil, we have additional negotiations underway for similar subscriptions to use our device and cloud-based monitoring services as an effective and low-cost alternative to expensive CTG machines.

“The onset of COVID-19 has presented a unique opportunity to fast-track the adoption of digital health in maternity care. HMD is well-placed to deliver high-quality, prenatal, and postpartum care to improve the safety, efficiency, and cost of maternal healthcare. HMD continues to receive significant interest from prospects from around the world and is well placed to capitalise on these opportunities,” he said.

While the COVID-19 pandemic provided a boost in the adoption of telehealth, it’s likely to be a trend that continues, particularly in remote communities or those without easy access to healthcare.

HeraMED is focused on securing ongoing partnerships with leading healthcare providers.

This article was developed in collaboration with HeraMED, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.