Orion Health Announces Win in the US Deal, Rise in the Share
FREMONT, CA: Orion Health Group [NZX: OHE], a provider of healthcare platform advancing population health and precision medicine solutions witnessed more than 4 percent rise in its share, post its announcement about the deal signed with a major healthcare insurer in the US, which will be followed by introducing its Amadeus platform for use with its three million strong membership base, reports Edwin Mitson, NBR. According to the agreement, the insurer’s partners will be able to access patient information directly from across all the departments, where they have been examined. Even though the Auckland-based medical software provider’s share boosted from 13c to $3.25, Orion’s shares have declined 33 percent, as compared to the previous year.
Following this, Orion Health has affirmed about cutting down staff figures in the US, and continue running business with just 36 posts, which includes only 10 percent of its American workforce. “We've engineered a lot of cost out of the system, so we need fewer consultants. It's one of the toughest things I have to do. They are good people, they are nice people,” says Ian McCrae, CEO, Orion Health Group.
“The redundancies reflected the company's move to make its software more efficient. Software that might have taken four months to install we can now do that in four hours,” he added.
Although the announcement did not bring fortune for Orion, McCrae considers that the stock market rules demanded for an immediate announcement for the deal with the health insurer. Orion is now preparing a plan to bring the company back on profitable tracks in May. “What we're saying and consistently saying is we're driving this company to make a profit,” states McCrae. “We've always run a profitable company, and we've had a bit of time where we've invested in R&D, and now we're focused on profit.”