Good Morning All...although not much will be good about today! 2 nights of big drops in the US has set the ASX up for a brutal day.
No doubt ALC will be affected but it has been known to buck the trend and hold or even finish green so really its a guessing game. A trading halt would be a blessing but doubt that will happen!
Over the weekend I found the contract below which was signed this quarter for a new product in with a new health consortium in Melbourne. It was nice to see some more traction in Australia. The contract wasn't announced as it is only 1.35mil over 5 years however a large discount was applied as it was a first time contract with the hospital. If the discount was not applied it would be 2.1mil over 5 years.
Contract is with Alfred Health and they consist of 3 hospitals
Alfred 550 - 600 (50-70 virtual beds, Hospital in the Home) Caulfield 136 - 150 (50-80 Virtual beds, Better at Home) Sandringham 40 - 66
The contract is to provide the Digital Journey Boards but I am unsure to what extent it is being rolled out across the hospitals, there is the possibility it is just in their main hospital the Alfred to start with.
Contract - T771/06/21 (tenders.vic.gov.au)Contracts need to be approx 10% of annual revenue or need to be significant in order for it to be released to market so whilst we are assuming nothing has been signed recently this shows that things are still ticking over and ALC is still making headway into the market and importantly new hospitals in areas we have alot of potential.
Cerner provides the Electronic Patient Records with Alfred Health so again Alcidion is easily integrating with Cerner. I've looked a lot into Cerner lately and have previously mentioned its about ALC finding its place in the health Eco system. Of late I am starting to understand the real Value in the agility of ALC offerings and being so adaptable. Cerner have such a wide reach but have such huge overheads and have taken so long to get to where they are that ALC coming in and overlaying with smaller easy to implement contracts its definitely the way forward, where ever Cerner currently are ALC can provide a service that will benefit that hospital and will be easy to sell the more hospitals with Cerner that take up our products ultimately any hospital with Cerner becomes a sales target. As Ive said I think we still will pick up full EPR with PAS for a NHS Trust but they will be the smaller and these will bring in the 10-20mil contracts which is when the market will take notice but just as importantly as these contracts we have signed with Alfred Health, new hospitals, easy to implement and this provides cross selling opportunities, not to mention Alfred Health is just around the corner from Head office.
Alfred Healths research department is partnered with LaTrobe University which is where Kate did her webinar last week so a lot of dots are beginning to join.
Alfreds Healths research website says the following:
- We have four concurrent programs of research that are focused on clinical decision making in the health service and improving the quality and safety patient care. The programs are:
-Patient safety
-Symptom management
-Health service evaluation
-Integrated knowledge translation & implementation scienceAll of these sound like ALC would be of benefit.
The above isnt going to save ALC from the wider macro environment however lately I have been looking at a lot of other companies that are down trying to find cheap companies that will see out this down turn...when you compare them to ALC with $17mil in the bank, contracts with government departments and at a time when healthcare and more specifically digital healthcare are so important they other companies don't stack up.
Watching the webinars last week what I really love about ALC is that there are so many clinicians working for ALC that are still practicing, it means we will be current in their thinking and offerings but also its more boots on the ground discussing ALCs products that are actually within the hospitals. A lot of other companies barely have a Doctor on their board and have little to no health care connection.
Anyway that will do me for a rant.
Today wont be pretty but your not going to call up your Super company and tell them to cash out all of your super just because of a bad day, super is long term, ALC is long term.
