Vitalhub (VHI.T) Treat system has been licensed for a six year contract term including an option to extend for another four years in order to track medical information required to treat inmates at provincially run adult prisons in Ontario.

The deal is a big one for Vitalhub. The contract brings in recurring licensing revenue of approximately $9 million over six years.

“The Treat solution continues to gain momentum as the leading EHR for health and human services providers in Canada. This agreement represents the second province-wide partnership that our team has earned the right to support in Canada and represents another very significant milestone for Vitalhub. We expect that with the scope, scale and expertise developed, this project will in time present many more opportunities across Canada and internationally,” said Niels Tofting, executive vice-president, business development and marketing.

Vitalhub develops software for human services providers like hospitals that’s meant to make life easier for staff and patients. Their technological solutions include the mental health, long-term care, home health, community and social services, and acute care sectors. This isn’t their first contract, either. They’ve signed with organizations all over the world, including Canada, the United States, the United Kingdom, Australia, New Zealand, the Middle East and Europe.

Vitalhub’s numbers at a glance.

• Revenue of $9,423,191, an increase of $4,100,117 or 77 per cent from the comparative period in the prior year.
• Gross profit as a percentage of revenue for Q1 2022 was 84 per cent compared with 76 per cent in Q1 2021 and 79 per cent in fourth quarter 2021.
• ARR (annual recurring revenue) (1, 2) grew by $1,908,427 to $24,015,090, achieving 9-per-cent growth for the quarter ($2,743,987 or 11.39 per cent on a constant currency basis) ($1,485,613 or 6.72 per cent organically and $1,032,000 or 4.67 per cent through acquisition and a decrease due to an unrealized foreign exchange loss of $609,186 or 2.76 per cent, which is attributable to the fluctuation of the British pound versus the Canadian dollar with a decrease from $1 (Canadian) to 1.73 pounds to $1 (Canadian) to 1.64 pounds) in Q1 2021 versus Q4 2021.
• New customer billings for perpetual and recurring licences, support, services, and hardware were $8.7-million, of which $2.9-million was recognized in the quarter and the balance of $5.8-million is deferred to be recognized as earned over the next 12 to 60 months.
• Net income of $1,437,611 compared with a net loss of ($241,671) in the comparative period in the prior year.

TREAT is the company’s electronic health record and case management solution and it’s also their biggest earner, responsible for a full one third of the company’s revenue. It’s client-centered and outcome based, as well as completely transparent.

The Ministry of the Solicitor General holds 8,000 inmates a day over 25 prisons. Health care services in all prisons keep detailed health records from when they arrive to the day they leave. TREAT was selected after an evaluation that started in December 2019 with an information request and ended with a request for bid process in late 2021. When Treat is deployed provincially it will give caregivers accurate, up-to-date, standardized and secure health information records.

—Joseph Morton