• VHA to cease NextGen PACS program for National Teleradiology Program
• Mach7 was a subcontractor for this program
• Phase 1 implementation complete, but Phase 2 will not proceed

Mach7 Technologies Limited (ASX:M7T), a company specialising in innovative medical imaging software solutions, has been advised by the prime vendor that a Partial Stop Work Order from the Veterans Health Administration (VHA) is underway to cease the current multi-vendor NextGen PACS program. The VHA is expected to remain with its incumbent vendor. Mach7 was to provide its Vendor Neutral Archive (VNA) and eUnity Enterprise Diagnostic Viewer as part of this contract. Mach7 had completed initial milestones for a limited go-live in mammography and telestroke under Phase 1 of the contract. However, with the VHA's decision, Phase 2 of the contract will not proceed. Mach7 CEO and Managing Director Teri Thomas stated that while the decision is disappointing, the NextGen PACS program was a uniquely complex, bespoke government implementation requiring significant resources. Importantly, this outcome does not affect Mach7's strategy, and the company will continue to focus on its commercial pipeline where deal velocity and payment terms are more straightforward.

Mach7 will continue the disciplined execution of its strategy to support ongoing ARR growth and profitability.