Leidos Australia chief executive Paul Chase (left) and Aspen Medical’s group CEO Craig Fitzgerald at the companies’ ADCHS teaming announcement. Photo: Aspen Medical.
Aspen Medical and Leidos Australia have announced they have teamed to bid for the Australian Defence Contracted Health System (ADCHS) program.
The ADCHS delivers clinical streams to ADF members nationally, including primary health services, allied health, mental health, dental, medical imaging and radiology, on-base pharmacy services, physiotherapy and exercise physiology, in-patient care, occupational rehabilitation, specialised services, and a nationally accessible medical advice, triage and referral service for all-hours support line.
The program has been operated by Bupa on an initial $3.4 billion six-year contract since January 2019. A Request for Information (RFI) was submitted to industry last year and closed in January 2025. It was followed in July by a Request for Proposals (RFP), which closed earlier this month.
The RFP documents say ADF members are provided with healthcare at Defence facilities in Australia and overseas, and these are supplemented by virtual, public and private infrastructure where required.
“While this network will continue to be vital to the provision of healthcare to the ADF, this procurement is seeking an integrated operating and delivery model that enhances organisational capability outcomes,” the RFP reads.
It says health services provided to ADF personnel are expected “at a minimum” to be the equivalent of those provided to the civilian population, but recognises that “health services provided to eligible personnel are invariably greater in scope than publicly available health services because of the higher requirement to maintain fitness for duty in the military context”.
Under the new tender, the ADF is seeking a service delivery model that integrates on-base and off-base health care into a coordinated system, standardises clinical pathways across all settings, enables continuity of care across locations and providers, reduces the requirement for manual clinical approvals for services, and transitions from an input-based service delivery model to one focused on access and readiness outcomes.
Following a review of the RFP, Defence aims to announce a shortlist of contenders by the end of the year, and go out to tender in the first quarter of 2026. It hopes the successful bidder will be in place by mid-2027, with the new system entirely rolled out by mid-2032.
Aspen Medical and Leidos say they are seeking to deliver an integrated, mission-focused care model that includes primary and specialist medical services, mental health support and occupational rehabilitation for ADF personnel.
Under the teaming agreement, Aspen Medical will provide support as a health service delivery partner, supplementing and expanding Leidos’s existing Defence knowledge, strength and experience in the delivery of programs for the ADF and internationally.
Aspen Medical group chief executive officer Craig Fitzgerald said Aspen Medical had been a trusted provider of contracted health services to the ADF and defence forces around the world for more than two decades.
“We’re incredibly pleased to be partnering with Leidos Australia to bid for this essential Defence service contract,” Mr Fitzgerald said.
“We believe our collective understanding of Defence’s healthcare needs, Australia’s strategic landscape, and our proven ability to deliver high-quality care at scale positions us as a trusted partner in supporting the ADF’s health capability.”
Leidos Australia chief executive Paul Chase said the agreement would seek to transform how health services contributed to Defence readiness.
“Our mission is to deliver more than health care,” Mr Chase said.
“Our goal is to build a nationwide, technology-enabled system that keeps Defence’s most important capability, its people, mission-ready at all times. Together with Aspen Medical, we’ll work to provide the right care, in the right priority and place, for the right outcome and cost.
“With the uncertainty Australia is facing, surge capacity and flexibility for Defence health has never been more important.
“Together, we can help Defence build a sustainable health system that’s fit for the future force.”
Original Article published by Andrew McLaughlin on PS News.
