Alcidion Group’s MKM Health wins contracts with Queensland Health to deploy NextGate software

Alcidion Group’s (ASX: ALC) subsidiary MKM Health has collared major contracts with Queensland Health and Queensland’s Metro South Hospital and Health Service to deploy NextGate Solutions’ referral service directory across the state, with both contracts expected to generate $12 million in revenue for the group over the next five years.

In late 2016, Queensland Health launched a $361 million specialist outpatient strategy to tackle long outpatient waiting lists, with the implementation of state-wide integrated referral management system a key component of the strategy.

According to Alcidion, this latest contract for MHK Health to roll-out NextGate Solutions’ Provider Registry software across Queensland’s health network is part of the integrated referral management solution.

NextGate’s Provider Registry will give general practitioners a central point of reference when making external referrals across Queensland’s hospital and health services.

Under the contract, MKM Health will supply the referral service directory using a software as a service (SaaS) model, with Queensland Health locking-in the service until mid-2024.

A second contract was also secured with Queensland’s Metro South Hospital and Health Service, which covers initial implementation and configuration of NextGate’s solution. It also includes integration with the GP Smart Referrals platform, which enables GPs to create and submit electronic referrals from existing practice software.

Alcidion said, combined, the contracts will add $12 million to the group’s contracted revenue pool over the next five years.

However, NextGate will also receive a portion of this as the SaaS provider.

Alcidion chief executive officer Kate Quirke said this was MKM Health’s first major NextGate contract since MKM Health became an authorised NextGate reseller earlier this year.

“The reseller agreement with NextGate gives us access to a market-leading, and highly complementary product set, and, importantly, puts us at the forefront of a major public healthcare IT project set to benefit many patients and general practitioners across Queensland,” Ms Quirke added.

NextGate chief executive officer Andy Aroditis said the roll-out of NextGate’s Provider Registry will provide the state with an accurate directory and referral network of healthcare providers.

Mr Aroditis said it will give general practitioners “timely, reliable access to referral information” which will have the advantage of “more informed decision-making” as well as “enhanced workflow processes” resulting in in better clinician and patient outcomes.

Ms Quirke said Alcidion’s total contracted forward revenue pool to be realised over the next five years was at almost $24 million by the end of September.

By late afternoon trade, Alcidion’s share price had lifted almost 14% to reach $0.049.