The Alcidion Group Ltd (ASX: ALC) share price has been a strong performer in morning trade.
At the time of writing the health Informatics company's shares are up 14% to 23.5 cents.
Why is the Alcidion share price storming higher today?
This morning Alcidion announced that it has signed a three-year agreement with Australian private healthcare provider Healthscope.
This agreement will see Alcidion implement a solution to support Healthscope's data and analytics strategy. Management advised that the value of the agreement is $895,000 over the three years.
The release explains that the main objective is for the two parties to work together to support Healthscope's vision for using data to drive transformation in the way that healthcare is managed and delivered. Using data generated from all of Healthscope's 43 hospitals, Alcidion will develop dashboards to support predictive analytics and long range planning for Healthscope services.
The company's managing director, Kate Quirke, appeared to be very pleased with this latest agreement.
She said: "Alcidion is excited to establish this relationship with Healthscope to augment their data and analytics capabilities across the organisation. This is Alcidion's first implementation of our data analytics capabilities into a private hospital group. It demonstrates how important data is becoming across the healthcare sector. We look forward to sharing our extensive capabilities around health care data management to assist Healthscope to drive better outcomes."
It certainly has been a busy few months for Alcidion. As well as today's agreement, in June it announced a five-year product licence renewal agreement with Western Sussex Hospitals NHS Trust for its Patientrack bedside patient monitoring software, and in July it was selected as the preferred provider for Dartford and Gravesham NHS Trust's Electronic Prescription Medications Administration System.
Management appears confident of more of the same in the future. When Alcidion released its full year results last month, the company's CEO advised that: "There is a significant opportunity ahead of us with the healthcare industry beginning to embrace digital transformation and our plan is to continue to invest for growth in the business to ensure we are positioned to take full advantage of this growing market."
