Global Health Limited (ASX: GLH) shares rocketed up in early trade today after the announcement of a major contract win with the Western Australian Government.
Before the market halt this morning, the Global Health share price was trading 50% higher at 60 cents. This compares to the All Ordinaries Index (ASX: XAO) which was up 1.2% to 6,687 points.
What is moving the Global Health share price
Global Health has won a contract with Western Australia’s Mental Health Commission (WA MHC).
Under the deal, the digital health company will implement its MasterCare electronic medical record (EMR) platform to WA MHC. The agreement will service for up to 10 years and is scheduled to go live on July 1, 2021.
WA MHC is responsible for a network of mental health, drug and alcohol services. These services are purchased from a range of government and non-government providers that help rehabilitation efforts.
The MasterCare EMR platform will enable WA MHC to meet key reporting requirements for alcohol and other drug treatment services. With the adoption of MasterCare, the organisation can manage client treatment and connect different infrastructure to alternate digital heath programs.
The project’s initial phase is worth $850,000 in the first year alone. This includes implementation, services and subscription of MasterCare EMR, MasterCare dashboards-as-a-service and ReferalNet secure messaging platform. There is a possible upgrade path to MasterCare+ SaaS platform over the term.
Management commentary
Global Health general manager of the MasterCare platform, Kye Cherian, said:
We are really excited by the opportunity to work with the WA Mental Health Commission on this project. They deliver a fantastic service that provides critical support to individuals and families that need it most. As a product team, we are proud to be working with community health organisations of this calibre.
This project further strengthens our claim as the premier solution for community health organisations across Australia and improves on the MasterCare products credentials in this space.
Global share price summary
The Global share price has been a strong performer over the year. Its shares have jumped from 14.5 cents at the beginning of the year to 60 cents today. This represents a gain of more than 300% for the stalwart investors who decided not to cash in on their profits.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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