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Nanocap health software company HeraMED (ASX:HMD) has been slammed on Monday as the company revealed its US based health clinic partner will no longer use HeraMED’s ‘HeraCARE’ software package.
The company blamed changes in the American Medicaid system under Trump for hurting its bottom line.
“Post Trump administration taking office, the changing healthcare and health funding landscape has particularly impacted US health systems serving Medicaid populations,” HeraMED wrote on Monday.
One is left to note the company has done what many companies are too fearful to do at this time – directly link Trump to lost revenues.
At any rate, the US medicaid program is an NDIS-style welfare program for low-earners and disabled individuals. Hospitals receive funding under the program.
Broward Health, a ‘safety net’ medical clinic was effectively trialling HeraMED’s software in a non-clinical setting.
But a key grant which apparently enabled that program has now been cut as HeraMED highlighted that: “the average annual cut to the Medicaid budget is anticipated to be approximately $70 billion per annum, more than ten times larger than any previous annual cut made to the program.”
This is bad news for HeraMED, which has been seeking to tap into those funds by way of offering eligible products.
But what does HeraMED offer?
Its HeraCARE software supports another device called ‘HeraBEAT’ which can monitor a baby’s heartbeat; but overall, its product is effectively a biometrics software package.
“Despite positive maternal-fetal outcomes,” according to HeraMED, Broward has had to ditch the HeraCARE software. That wipes around US$100K (A$155K) of predicted revenue from the books for HeraMED.
“The agreement with Broward Health had estimated revenue in 2025 of USD$100,000 and served as an important Case Study,” the company wrote.
“Broward continued to report significant improvements to the maternal-fetal outcomes as recently as March 2025, highlighting that the decision is not related to the clinical performance or efficacy of the HeraCARE platform.”
As for what the company will do from here?
If CEO Anoushka Gungadin’s commentary was anything to go by, the company hasn’t quite figured out where yet: “We will continue to sharpen our focus where the need is urgent and the sales cycle shortest,” he wrote.
HMD last traded at 1.1cps.
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