The Turnbull government is pushing ahead with plans to place sensitive medical records under corporate management and will announce on Thursday that Telstra Health - a division of Telstra - has been awarded the contract to manage a new national cancer screening register from next year.

The lucrative contract, which one industry source estimated at as high as $180 million over three years, will be announced by Health Minister Sussan Ley.

It signals an end to a series of smaller registries managed on a not-for-profit basis, but is a separate program from another plan to outsource Medicare's chronically inefficient payment delivery system, which Labor has decried as privatisation of Medicare by stealth.

The novel foray into medical information management by the telecommunications giant could be unpopular with patients raising concerns about privacy and security, and even raising questions over the extent of legal protection under Australian law if data is stored or transmitted offshore.

The decision to award the contract to Telstra Health is expected to involve the creation of a national screening register eventually incorporating results for all Australians who return positive screening tests for cervical and bowel cancer as well as records of vaccinations under the Human Papillomavirus Vaccination Program Register.

Until now, state-based not-for profit organisations have been involved in compiling and maintaining the registers, with at least one, the Victorian Cytology Service, being overlooked for the national contract, despite its extensive experience in the field which has included providing its registry services to South Australia also.

Fairfax Media has been told Telstra Health had since made overtures to Victoria Cytology Service for access to its expertise, staff, and other resources to enable it to get the new national register up and running by May 1, 2017.

Minister for Health Sussan Ley said this was part of the Coalition's plan to ensure Australia remained a world-leader in cancer research, prevention and treatment.

"This national register will do everything from sending patients reminders they're due to undergo cancer screening all the way through to ensuring their doctor knows the results, as well as helping researchers find the cures of tomorrow," Ms Ley said.

"If Labor tries to run a scare campaign on technology that saves lives and reduces your risk of common cancers it just shows how desperate Bill Shorten has really become."

In a public tender call, which closed on October 8, last year, the Department of Health sought "one vendor to create a robust IT solution-based support system for the expanded National Bowel Cancer Screening Program, the renewed National Cervical Screening Program, and potentially future cancer screening programs".

"The Department is seeking robust, dynamic and innovative commercial solutions capable of providing services on a fully managed basis, including the provision of an ICT (information and communications technology) capability ... and the operational and support services required to transition to and deliver the services underpinning Commonwealth, state and territory cancer screening programs ... in order to meet specific outcomes."

It further stipulated that the register would feature what it called a "single participant record, streamlined reporting and the leveraging and re-use of the Personally Controlled Electronic Health Record system and eHealth foundation systems to enable participants and health professionals to provide, update and receive information."

While Telstra Health is intent on expanding into the field of healthcare information management, consumers are expected to be wary at the prospect of their ultra-personal information being held by a large and potentially unresponsive corporation, not to mention the risk of data breaches, whether real or perceived.

In 2013, Fairfax Media reported on the accidental exposure of Telstra spreadsheets which had been made available via Google search.

A member of the public, Lee Gaywood of Chelsea Heights in Victoria, had chanced upon the information which detailed customer names as well as silent telephone numbers, and, some business and home addresses.

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