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An A-Mount of Healing Magic is triggered by speaking to the couple at a campsite just north of the White Witch's cabin. To resolve the quest, you either need to consume a Blood Stone to heal Alfie, or kill him to put him out of his misery.
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If you wish to heal him, you'll need an active Blood Stone in your inventory. Speak to Alfie, and you can consume the Blood Stone through the dialogue options. This will still unlock a room in your Homestead, so the Blood Stone will not be wasted.
If you wish to kill him, you'll need to talk to Bjorn and convince him that it's the right choice. If you simply attack Alfie, Bjorn and Mara will also turn hostile, thus killing the quest as well as an innocent family. If you can convince Bjorn however, you'll be able to take Alfie down. The family won't like it, but you'll save the Blood Stone.
Whether you cure or kill Alfie, you'll resolve this quest, and can then talk to Bjorn to trigger The Escort Job.
Note that if you retain the Blood Stone you earned from killing Pontius in Part 3, you can use it on Alfie when you first see him in Part 7. However, there is no time limit on this quest, and because The Escort Job features an ambush of enemies at Level 9, it might be better to hold off on An A-Mount of Healing Magic until you're much stronger so the battle becomes easy.
