Here's why the Alcidion (ASX:ALC) share price is jumping 5% today

The market is reacting positively to news of an expanded agreement for the use of Alcidion's Miya Precision.

The Alcidion Group Ltd (ASX: ALC) share price is rocketing higher today after the company announced the Sydney Local Health District has expanded its use of Miya Precision.

The expanded agreement will see Alcidion with an extra $1.8 million of revenue over the next 3 years.

At the time of writing, the Alcidion share price is 37 cents, 5.71% higher than its previous close.

Let's take a closer look at today's news from the healthcare-focused software provider.

An older woman clasps her hands with joy, smiling at the news on her computer as she sits at her kitchen bench..

Image source: Getty Images

Alcidion share price soars on expanded agreement

The Alcidion share price is in the green after news Miya Precision is to help support more delivery of virtual care.

Miya Precision is a remote patient-monitoring platform. It provides Sydney Local Health District's RPA Virtual Hospital's clinicians with a monitoring dashboard to support remote patient care.

Initially, the company's contract with Sydney Local Health District was for 12 months. The initial contract saw Miya Precision used to manage the care of COVID-19 patients in home isolation.

Under the newly expanded agreement, Miya Precision will also help monitor patients with acute diverticulitis.

Alcidion's managing director, Kate Quirke, commented on the news driving the company's share price today:

We believe Alcidion can play a meaningful role in the development of virtual care across the hospital system in Australia and this partnership with Sydney Local Health District provides a strong validation of that. The opportunity to extend our technology to provide improved information and communication options for the patient in the home will significantly improve the patient experience and contribute to better outcomes.

According to the company, Miya Precision aims to reduce hospitalisations, increase the number of patients treated, and improve recovery outcomes.

Alcidion and Sydney Local Health District will also work to deploy the patient app, Miya Care.

The app will allow the RPA Virtual Hospital to better monitor care progress and improve engagement with patients. Miya Care will also use data from patient monitoring devices and wearable technology.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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