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One of the branches of Saudi German Hospital
Middle East Healthcare Co. (Saudi German Hospital) said its independent board members recommended awarding the contract for digital transformation of the company's hospitals to Megamind IT Solutions Co., a related party.
The contract is expected to be signed on Jan. 3, 2021, the company said in a statement to Tadawul on Dec. 30.
The contract details the digital transformation of the company’s hospitals in Saudi Arabia, as follows:
- SAR 264.68 million for implementing the program for a period of three years.
- SAR 43.13 million for the annual maintenance for five years. To be paid by Megamind.
- SAR 75.13 million for the cost of software licenses for seven years. To be paid by Megamind.
The recommendation will be presented to the general assembly for a vote, the company said in a statement to Tadawul on Dec. 30.
Sobhi Abdul Jalil Batterjee (chairman of the board), Makarem Sobhi Abdul Jalil Batterjee (vice chairman), Khaled Abdul Jalil Batterjee (member), and Sultan Sobhi Abdul Jalil Batterjee (member) were named as related party.
The digital transformation project will contribute to raising the level of healthcare and help the company’s hospitals in obtaining more accurate information and access to health data in a better and timely manner, the statement said.
It is expected to reduce the operating cost in addition to improving the quality of medical services provided and speed of performance in line with the Kingdom's Vision 2030. It will also impact the price increase of contracts concluded between the company and some of its major customers.
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