Why the Alcidion (ASX:ALC) share price is surging 5% higher

The Alcidion Group Ltd (ASX:ALC) share price is pushing higher on Wednesday after announcing a new contract win in the UK…

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The Alcidion Group Ltd (ASX: ALC) share price has continued its positive run and is pushing higher again on Wednesday.

In morning trade, the healthcare technology company’s shares are up 5% to 29.5 cents.

Why is the Alcidion share price surging higher?

Investors have been buying Alcidion shares this morning after it announced a new contract win.

According to the release, the company has signed a contract with East Lancashire Hospitals NHS Trust for Patientrack and Smartpage. This contract is valued at $2.2 million over five years.

The release explains that the East Lancashire Trust is a large, integrated health care organisation of 8,000 staff, providing acute, secondary and community healthcare for the 530,000 residents of East Lancashire and Blackburn with Darwen.

Patientrack will be used by the Trust’s nurses as they carry out crucial observations, integrating directly with devices used at the bedside to capture patients’ vital signs. This will allow them to automatically calculate a patient’s early warning score.

Whereas Smartpage, which is Alcidion’s smartphone and web-based secure messaging system, will be deployed in parallel and integrated with Patientrack to push alerts to clinical teams for when they need to take action for patient care.

Management commentary

Alcidion’s Managing Director, Kate Quirke, said: “We are delighted to partner with East Lancashire Hospitals NHS Trust to support the delivery of better and safer patient care. Both Patientrack and Smartpage continue to open the door to new customer relationships, supporting the expansion of our presence in the UK.”

East Lancashire Hospitals NHS Trust’s Chief Information Officer, Mark Johnson, spoke very positively about the technology.

He said: “We are driving forward our ambitions to enhance patient care and improve working life for staff through digital technology, both locally and in collaboration with our ICS colleagues across the region. Patientrack, which has delivered impressive results for patient safety in dozens of other NHS hospitals, accompanied by Smartpage, will be an important part of that digital roadmap and the deployment of our local EPR.”

Following today’s gain, the Alcidion share price is now up over 55% since the start of the year.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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