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Orion Health shares rise as new deal inked

NZ NewswireNZ Newswire 6/04/2016 Pattrick Smellie

Orion Health's shares rose 3.7 per cent to a five-month high of $3.63 following the announcement of the health systems software company's second large contract in a fortnight, this time with the largest health service in the Australian state of Queensland, Metro North.

The announcement follows a rally in the stock last week when the announced a contract with a major American healthcare provider.

The shares have risen from $3.12 before the US announcement on March 30, having fallen to an all-time low of $2.53 in late February from a listing price in November 2014 of $5.70.

Metro North will use Orion's referrals management platform for the population more than 900,000 that it serves and pay for it on an ongoing subscription basis, Orion's preferred contract terms for ensuring sustainable recurring revenue. The organisation employs more than 16,000 staff in five hospitals and eight community health centres and also runs oral and mental health facilities.

"Metro North has the ability to extend the functionality of the platform beyond referrals management over time through the addition of other modules that support better care coordination between its hospitals, community health centres and other healthcare providers," said Darren Jones, Orion executive vice-president for Asia-Pacific.

Metro North is one of 16 divisions in the Queensland government's health service and covers the northern suburbs of Brisbane and surrounding countryside.

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