Hills secures $7m contract for Nurse Call tech in new Footscray Hospital in Melbourne

Addressing Melbourne’s strained public health system, integrated technology distributor Hills (ASX: HIL) has announced that it will be deploying its Nurse Call technology at the new Footscray Hospital, the single largest health infrastructure investment in Victoria.

The Company secured the Nurse Call supply and installation contract valued at $7 million, with an option to continue in the hospital operating phase following completion.

Hills will deliver its Nurse Call technology as part of the Plenary Health consortium, led by construction company Multiplex including Honeywell and Compass, working in partnership with Appselec, an industry leader in electrical and communications contracting services.

The hospital will provide a range of healthcare services in Western Melbourne, which is among the fastest-growing areas of Melbourne. It will enable over 15,000 patients every year to access care close to their homes.

Chief Executive Officer David Clarke detailed, “The team at Hills is proud to be trusted by the Victorian Government and consortium partners to deliver this critical element of the project.”

“By selecting Hills and our Australian designed and manufactured Nurse Call technology, the Plenary Health consortium led by builder Multiplex has recognised our capability and reliability to deliver projects of this scale.”

The Hills Nurse Call tech solutions will be deployed to more than 500 beds and includes the integration of new smart touchscreen terminals in every patient room. Its aim is to improve workflow management during clinical and operational activities.

In FY22, the Company suffered a statutory net loss after tax of $24 million, with $4.8 million spent in continuing businesses and $3.1 million in legal costs. The Company has been subject to three legal claims over the past year, with one pertaining to a third-party contract and two focused on ground water contamination potentially originating from two of the Company’s former South Australian sites, which continues to be monitored.

They also spent net funding costs of $1.7 million in FY22, representing the full-year cost of the higher funding requirements of the Hills business prior to the divestment of discontinued operations. Finally, there was a net loss of $15.6 million relating to the discontinued operations due to Covid.

The COVID-19 pandemic impacted the Company’s operations, creating a high level of uncertainty. Difficult trading conditions and business changes, such as the divestment of the Australian Security and IT Distribution division and the closure of the New Zealand distribution business, also influenced losses.

The Company expects Covid’s influence in terms of supply chain and construction issues to continue to have a negative impact on Hills’s business performance for the first half of FY23.

Now, the Company is going full steam ahead to make up for time lost. How well the new health projects do will depend on the speed at which Hills catches up on the refurbishment and construction of new and deferred hospital projects.

As for the New Footscray Hospital, construction is currently underway on the corner of Geelong and Ballarat Road in Footscray, and it is expected to open in late 2025.