Telstra has announced a loss of $38 million in an overall $77m impairment reduction for its health business and a dilution of its ownership of online booking service Health Engine, but says it is looking at a long-term strategy for the division and expects it to become profitable.

Announcing its end-of-financial year results last week, the company said Telstra Health was now the largest health software and solutions vendor in Australia and had over 1000 people on staff.