$32m Harrison.ai investment a good starting point: DHCRC

4 minute read


The centre wants federal and state governments to use their significant purchasing power more actively across the healthcare sector. 


The federal government’s $32 million investment in Australian AI healthtech company Harrison.ai demonstrate the strength of the country’s digital health ecosystem, says the Digital Health Cooperative Research Centre. 

But DHCRC CEO Annette Schmiede says it also highlights the need to ensure local health start-ups are supported through smarter procurement by the public hospital sector. 

The federal government announced the investment, reported last week in The Medical Republic‘s sister publication Health Services Daily, which will be made from the National Reconstruction Fund Corporation into Australian AI tech Harrison.ai to keep it based in Sydney.  

Harrison.ai technology uses Al to read CT scans and X-rays to support detection and diagnosis of medical conditions. Already deployed in more than 1000 healthcare facilities around the world, the technology helps diagnose more than six million patients annually. The NRFC investment will also help the company expand globally.  

“This is an Australian success story that will continue to operate in Australia thanks to the NRF’s investment, growing our medical and Al capabilities,” industry and science minister Ed Husic said last week.  

“This is what we want to see more of – brilliant Aussie know-how creating thriving world-beating businesses.”  

This story first appeared on Health Services Daily. Read the original, or sign up for your discounted GP subscription here.

Ms Schmiede said today that the investment by NRFC was recognition of AI’s potential to transform healthcare and the capability of Australian innovators to build globally competitive business models. 

“Harrison.ai is an outstanding success story when we look at Australia’s burgeoning digital health sector,” she said. 

“It is a medical-first company that is using advanced AI and technology to solve essential areas of need in our healthcare system, both here and across the globe. 

“However, while Harrison.ai is a positive demonstration of the local digital health technology sector, it is disappointing that it has had greater success scaling its business in overseas markets than in Australia.” 

The DHCRC has called on federal and state governments to use their significant purchasing power more actively across the healthcare sector, particularly in public hospitals.  

Directing their spending to support local success stories like Harrison.ai would help drive local innovation and capability, said Ms Schmiede. 

Australia is a world leader in healthcare and was ranked first in the recent Commonwealth Fund’s Annual Report. Health science research in Australia is ranked seventh globally, and Australia is ranked fifth in the World Index of Healthcare Innovation.   

Public hospitals account for close to one third of total health expenditure, which is close to $270 billion annually. Health, along with social security and defence, is one of the three largest areas of government spending. 

However, Ms Schmiede said, the health sector remained fragmented and poorly integrated with state-based health services. Procurement policy and processes were focused on cost minimisation and large-scale purchasing agreements. This limited opportunities for domestic businesses to compete and grow. 

“Many of our partners tell us that they are unable to get a look in on local contracts and are often more successful offshore,” said Ms Schmiede. 

“This is not only stifling local innovation but creating sovereignty risk.” 

She said Harrison.ai’s technology was accessible to one out of every two radiologists in Australia, representing strong leadership by the private sector, but by comparison had only been adopted by three public hospitals in Australia. 

“We believe it is critical that public hospital procurement processes look beyond costs to other impacts of their spend – such as supporting innovation and the growth and sustainability of the local industry,” said Ms Schmiede. 

This also aligned with current national policies, including the National Digital Health Strategy, which placed people at the centre of a connected and digitally enabled healthcare system. 

“Incorporating such value-based procurement considerations, which move beyond price as the priority consideration in evaluating benefits, is essential for promoting health innovation, ensuring value for money and enhancing community wellbeing,” she said. 

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