The Global Health (ASX: GLH) share price is up 5.3% today following a positive announcement of a significant contract win by the company.
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The Global Health Limited (ASX: GLH) share price is on the rise today after the company released a positive announcement regarding a significant contract win. In early morning trade, shares in the digital health company were down 6.5% to 35.5 cents before the Global Health share price rallied to its current level of 40 cents at the time of writing. In comparison, the All Ordinaries Index (ASX: XAO) is up 1.16% to 6,586.30 points.
What’s moving the Global Health share price?
The Global Health share price is on the move today after the company reported it has signed an important contract with Butterfly Residential Care. The new deal will see both companies integrate a client management system that focuses on dealing with mental health issues.
Butterfly Foundation is the national organisation for people living with eating disorders and body image issues. The organisation’s mission is to change lives by providing evidence-based support services, as well as delivering prevention and early intervention programs.
Backed by the federal government, Butterfly established a subsidiary called Wandi Nerida which is operated by Butterfly Residential Care. Located on Queensland’s Sunshine Coast, Wandi Nerida is Australia’s first, community-based residential facility for eating disorders.
The state-of-the-art, purpose-built facility will house 13 beds and provide a phased treatment structure to address mental illness. Providing the company is able to secure enough funds, the clinic is expected to open in mid-2021.
The integrated client management contract is worth in excess of $122,000 to Global Health for the initial 12 months. The agreement will feature a portfolio of Global Health products such as its MasterCare services, ReferralNet program, and HotHealth Virtual Care platform.
What did management say?
Wandi Nerida Executive Director, Ms Jodie Ashworth, spoke about the new partnership. She said:
Butterfly Foundation has partnered with Global Health to provide an EMR and PAS solution for Wandi Nerida, Australia’s first residential eating disorder facility. Global Health maintained a high focus on customer service and adaptability throughout the selection process. Their experience with ICT solutions for mental health services made them a clear choice for developing innovative solutions for leading edge health providers.
Adding to Ms Ashworth’s comments, Global Health Managing Director, Mr Matthew Cherian said:
Our team acutely understand what is happening in the mental health space in Australia, having developed the IT services to assist and recognise the importance of this initiative. We are strongly committed to supporting the Wandi Nerida facility to become the benchmark and ultimately viewed as the best practice model in dealing with the specific needs of people living with an eating disorder.
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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.