Florida backs 3DICOM® as state infrastructure in ~A$3.5M imaging deal
The State of Florida has appropriated US$3.0M (~A$4.17M) to Florida International University (FIU) to build a Medical Imaging Data Repository, with Singular Health Group (ASX: SHG) signing an amended and restated MOU to design, deliver, and operate it using its 3DICOM® platform. Singular Health’s share of the funding is approximately ~85% (~US$2.55M / ~A$3.5M), to be paid in milestone-based tranches with full payment due by 30 June 2027.
The commercial scale is material: the contract is equivalent to approximately ~2.5x SHG’s FY26 revenue of A$1.43M and approximately 3x the annual contracted value of its largest existing customer agreement. This is SHG’s first state-funded programme and its first contracted revenue from infrastructure and repository delivery, distinct from its existing per-physician licence revenue. The MOU is non-binding in nature, except that both parties are legally bound to enter into definitive binding agreements on the minimum terms set out in the MOU.
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What this deal means for SHG’s revenue model
From per-physician licences to state infrastructure
SHG’s existing US commercial model centres on annual per-physician licences at US$800 per physician per year. Its largest agreement, with PNS, covers 1,000 licences at approximately US$0.8M per year, which is expected to be expanded and renewed.
The PNS enterprise agreement, which covers approximately 4.2 million covered lives across Florida, Texas, and Puerto Rico, has already demonstrated cost savings exceeding initial expectations, with a 3-5% savings rate targeted against US$35 per member per month in duplicate imaging costs.
The FIU agreement represents a materially different commercial structure. A single state-funded infrastructure contract worth approximately ~US$2.55M to SHG is roughly three times the value of the PNS agreement. The FIU deal will be entered into by Singular Health’s wholly owned US subsidiary, is entirely separate from the PNS joint venture, and all revenue is 100% allocated to Singular Health. SHG also retains 100% of its platform IP, including 3DICOM®, Repository technology, Gateway, MFTP and workflows.
Pathway to recurring annual revenue
FIU and Singular Health intend to seek future annual State of Florida funding broadly comparable to, or potentially greater than, the initial US$3.0M for ongoing use of the Repository. This is not yet assured, and any continuation is subject to successful delivery, applicable State budget approvals, FIU approvals, and regulatory approvals.
Revenue from the project is expected to be recognised in FY27. Singular Health expects to deliver the project primarily within its existing team, which the company anticipates will significantly improve operating cash flow.
Managing Director and CEO, Denning Chong
“Until now, we have sold our platform to provider networks, one physician license at a time. Florida is the first time a State has funded it as infrastructure… Our job is now to sign the binding agreements and deliver the technology and results.”
Understanding the Florida Medicaid opportunity
Florida operates one of the largest Medicaid programmes in the United States, with approximately 3.4 million enrollees as at April 2026. Nationally, Medicaid and the Children’s Health Insurance Program (CHIP) provide health coverage to approximately 73.9 million people, including approximately 66.7 million Medicaid enrollees.
Medical imaging is fragmented across hospitals, imaging centres and providers. Where prior imaging cannot be located or shared, scans may be repeated unnecessarily, increasing cost, delaying diagnosis and, for modalities such as CT, exposing patients to avoidable radiation.
The Repository, built on 3DICOM® and SHG’s proprietary MFTP transfer technology, is designed to enable authorised providers serving Florida Medicaid beneficiaries to locate, access, view and share existing imaging across participating organisations, regardless of where the original study was performed. It is designed to meet HIPAA (Health Insurance Portability and Accountability Act) requirements.
The platform’s FDA 510(k) clearance, achieved in 40 days across expanded modalities including CT, MRI, PET, X-ray and ultrasound, underpins the regulatory credibility that state-level health infrastructure deployments require.
For investors, Phase 3 of the project is particularly significant. It is a funded clinical and economic validation pilot that will assess outcomes against agreed success measures in a Florida Medicaid population. The resulting evidence on duplicate imaging reduction is what health plans and other state programmes are expected to assess before making their own purchasing decisions, and it is also the foundation for SHG’s proposed savings-share revenue model.
Delivery is expected to progress through three phases, with completion by 30 June 2027 or earlier:
- Phase 1 – Platform foundation: planning for the design of Repository infrastructure, security architecture and integration of initial data sources
- Phase 2 – Programme readiness: selection of the pilot population, evaluation methodology, and regulatory, privacy, data governance and institutional approvals
- Phase 3 – Clinical and economic validation: conduct of the validation pilot and assessment of clinical, operational and economic outcomes against agreed success measures
Key terms and strategic context at a glance
| Term | Detail |
|---|---|
| Total state funding | US$3.0M (~A$4.17M) single-year FY2026–27 appropriation to FIU |
| SHG share | ~85% (~US$2.55M / ~A$3.5M) |
| FIU share | ~15% (governance and administration) |
| Payment deadline | Full payment to SHG by 30 June 2027, in milestone-based tranches |
| Exclusivity | 5-year: Florida Medicaid projects only; SHG remains free to pursue commercial and non-Medicaid programmes in Florida and all programmes outside Florida |
| Platform IP | 100% retained by Singular Health, including 3DICOM®, Repository technology, Gateway, MFTP and workflows |
The strategic significance of the FIU agreement extends beyond the initial funding in four areas:
- Evidence generation: Phase 3 of the project is designed to produce measurable proof that shared imaging access reduces duplicate scans and their cost in a Medicaid population. Positive results would support future sales to health plans and states, and underpin SHG’s proposed savings-share revenue model.
- Repeatable deployment framework: The Repository is being built on interoperability standards and cloud architecture intended to support future deployments without rebuilding the core platform.
- National blueprint potential: CEO Denning Chong has noted Florida’s history of leading Medicaid innovation and the potential for the model to be replicated across other US state Medicaid programmes, though any such replication is not assured and would depend on outcomes from the initial deployment.
- Retained freedom: The five-year FIU exclusivity applies only to Florida Medicaid projects. Singular Health remains free to pursue commercial and non-Medicaid programmes in Florida and any programme outside Florida.
Managing Director and CEO, Denning Chong
“Duplicate imaging is not just a Florida problem; every state Medicaid program deals with scans that are scattered across providers, repeated when they don’t need to be, and paid for more than once… what FIU and Singular Health are going to deploy and measure here has the potential to become a blueprint for Medicaid programs across the country.”
What’s next for Singular Health
The immediate next step is execution of definitive binding agreements and Statements of Work, which remain outstanding. The milestone payment schedule will be specified within those definitive agreements, with all payments due to SHG no later than 30 June 2027, subject to completion of delivery of the Repository.
SHG has stated it will keep shareholders informed of material developments as the project progresses, including completion of the Statements of Work, execution of definitive agreements, and milestone payments.
Upon successful delivery, Singular Health would hold a US state-level reference site — the first deployment of 3DICOM® as state-funded infrastructure — that health plans and other state programmes could assess before making their own purchasing decisions. The outcome of Phase 3 validation is expected to be central to how any such decisions are evaluated.
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