Medical program close to US breakthrough

By PETER GRIFFIN IT writer

Software company Plato is on the verge of a breakthrough in the United States, securing trials with customers that could translate into multimillion-dollar deals by the end of the year.

The Epsom-based clinical software developer is "hiring like mad" and is close to securing several million dollars from New Zealand investors.

Plato is pinning its hopes on two software trials to begin in July. One of the customers is the US Department of Defence.

The software, which carries a US patent, codes operating notes and patient records across medical specialties such as orthopaedics, maternity and general medicine.

"Most doctors dictate their notes, which are normally then transcribed by an army of coders," said Plato's chief executive and part-owner, Paul Ryan. "Our software extracts clinical information from their notes, even if they're written in an unstructured form."

The defence deal, secured after Plato drew attention at an Atlanta trade show last month, will focus on medics working in the field.

No revenue will be attached to the trial, but if it is successful, Plato could eventually be providing clinical software for a health system that manages the records of 8.5 million defence workers, their spouses and children.

A second trial starting in July with a New Jersey company will generate revenue of $5 million, and Plato is shortlisted for a further contract with a New York company, valued at $US5 million ($12 million). The names of the companies have not been revealed.

Mr Ryan said activity at Plato's Los Angeles office would be scaled up as it became the centre for managing the US trials.

In Auckland, where Plato carries out all its software development, a recruiting drive is under way to handle the greater work-load.