US Medicaid Changes Force Broward Health Exit, HeraMED Eyes New Growth Paths

Navigating a Shifting US Healthcare Landscape

HeraMED Limited (ASX, HMD) reported a mixed but forward-looking quarter ending June 2025, marked by strategic partnerships and cautious commercial progress amid evolving US healthcare policies. The company’s CEO, Anoushka Gungadin, acknowledged the challenges posed by recent Medicaid restructuring, which led to Broward Health discontinuing HeraCARE despite demonstrably positive maternal-fetal outcomes. However, she noted a stabilizing policy environment that is beginning to unlock new commercial opportunities.

Strengthening US Market Presence

To sharpen its US go-to-market strategy, HeraMED appointed Aspire Health Innovations, a seasoned healthcare commercialisation firm, alongside Jeff Garibaldi as Chief Growth Officer US. Garibaldi brings decades of healthcare leadership and commercial success, including multiple high-value exits and extensive product scaling experience. Their combined expertise aims to accelerate HeraMED’s penetration into key US health systems, with a large Florida-based pilot nearing contract finalisation.

Innovating with AI and Expanding Global Footprint

On the innovation front, HeraMED partnered with RMIT University and the Digital Health Cooperative Research Centre to develop AI-driven predictive models targeting culturally and linguistically diverse maternity populations. This $1.25 million project underscores HeraMED’s commitment to leveraging data as a strategic asset, enhancing clinical decision-making and commercial potential through subscription and licensing models.

In Europe, HeraMED is advancing commercial discussions and preparing for its first pilot with a major private health insurer, while in Australia, collaborations with Simply Women, JOGG, and Melbourne Mothers continue to expand HeraCARE’s reach and clinical validation.

Financial Position and Operational Efficiency

Financially, HeraMED ended the quarter with $954,000 in cash, reflecting ongoing cost management efforts including staff and operational expense reductions. The company reported no customer receipts this quarter but is actively pursuing non-dilutive funding, with two grant applications pending in the EU and Australia. Additionally, HeraMED joined ANDHealth, Australia’s leading digital health accelerator, to leverage networks and funding opportunities that support clinical validation and international market entry.

Regulatory progress includes the submission of the HeraBEAT device reclassification to the Therapeutic Goods Administration, a key step for broader market access in Australia.

Outlook

While the June quarter reflected a temporary slowdown in commercial agreements, HeraMED is adapting its strategy to the evolving healthcare landscape. The company remains focused on operational efficiency, expanding its commercial pipeline, and capitalising on AI-driven innovation to drive growth across multiple regions.