HeraMED turns Lee Health pilot into paid US maternity rollout

Lee Health pilot moves into paid deployment

HeraMED Limited (ASX:HMD) has cleared the most important commercial hurdle in its US strategy: Lee Health has approved full deployment of the Digital Pregnancy Journey after a six-month pilot. The initial Statement of Work is valued at US$317,200, or A$453,142, and covers 200 mothers under a paid SaaS arrangement.

The agreement includes 12-month HeraCARE licences, maternity monitoring kits, four customised care pathways, implementation, Epic integration and ongoing device and application support. Lee Health can order further patient cohorts in groups of 20, 50, 100 or more, creating a mechanism for additional licence, device and support revenue if the deployment expands.

The commercial step follows Lee Health pilot success, which the company said produced 92% virtual adoption, a 100% likelihood to recommend and a net promoter score of 60 for the program. HeraMED also reported that the digital pathway used 11 virtual visits compared with approximately 15 in-person visits under the traditional model, while maintaining the existing standard of care.

Epic integration becomes the next scaling test

Implementation is now underway, with a second clinic in Fort Myers joining the original Cape Coral pilot site. The first 200-mother deployment is intended to establish the operating model across clinics, care teams and customised maternity workflows before further cohorts are added.

HeraMED and Lee Health have scoped the technical and clinical workflows for integrating HeraCARE into Lee Health’s Epic electronic medical record environment. Completion is targeted for March 2027. The company describes the integration as a key enabler for embedding remote patient data into existing clinical workflows and creating a repeatable framework for other US hospital deployments.

Cash receipt improves position but runway remains tight

The Lee Health payment arrived in early October, after the quarter closed, so it was not included in the 30 September cash balance of A$2.13 million. Including the receipt, HeraMED said its cash position immediately afterwards was approximately A$2.58 million, before October operating expenditure. The company recorded quarterly operating cash outflow of A$791,000 and estimated 2.7 quarters of funding at 30 September.

HeraMED also continued joint commercial work with Philips, including presentations and engagement with prospective US health systems, while the parties negotiated an expanded agreement beyond their Philips commercial agreement. No final terms for that expansion were disclosed. The immediate test is whether Lee Health produces additional cohort orders quickly enough to turn a successful pilot and an initial payment into durable recurring revenue before cash becomes the more pressing story.