Orion Health

By CIO New Zealand staff | Monday, November 10 2008

The North American market is a significant source of growth and revenue for healthcare IT specialist Orion Health. While the company is currently experiencing no impact from the North American economic crisis, CEO Ian McCrae says that could change.

HQ: Auckland
Website: www.orionhealth.com
Global leader: Ian McCrae, CEO
Core activity: Clinical workflow solutions and integration software for the healthcare industry
Revenue: NZ$53 million (FY ended March 08)
Key customers: NZ Ministry of Health, Auckland District Health Board, Health Alliance, New South Wales in Australia, Canada’s Health Infoway, UCLA Medical Clinic
Employees: 320, including Healthlink, but not including contractors


The North American market is a significant source of growth and revenue for healthcare IT specialist Orion Health. While the company is currently experiencing no impact from the North American economic crisis, CEO Ian McCrae says that could change.

“The health budgets of [our customers] were set 18 months ago, and health as a sector is somewhat immune from economic fluctuations. We also have new business in Saudi Arabia and in South Africa, and have opened an office in Reading just out of London. But 85 per cent of our growth is offshore, with the real growth markets in North America and Europe,” says McCrae.

Ian McCrae, CEO: “We sell and win against very big competitors.”

Orion Health employs 330 staff with 230 in New Zealand. While sales and customer implementations occur overseas, all software development occurs locally. McCrae says Orion Health attracts Auckland University IT graduates and tries to hold on to them and other staff by being flexible.

“New Zealanders have a habit of doing these overseas trips. We send some to our international offices and a number then return home. Competition for these graduates is fairly intense.”

McCrae says the global health IT market Orion Health competes in is worth around US$70 billion and is growing at a rate of 18 per cent per annum.

The company is currently in the top 100 international providers in this sector and is “moving towards the top 50”, says McCrae. That movement was assisted by 30 per cent revenue growth for Orion Health for the past financial year.

“We sell to many countries, our distribution is global, and we sell and win against very big competitors. We are doing stuff that is unique and our focus going forward will be on sheer process excellence and innovative product design,” says McCrae.