Significant Contract Win and Reseller Agreement
2 February 2016 – Craneware (AIM: CRW.L), the market leader in Value Cycle solutions for the US healthcare market, is pleased to announce a significant new contract with a hospital operator in the US. The Company is also pleased to announce the signing of an exclusive value added reseller agreement with US-based automated payment technologies and services company, VestaCare. The Company will combine VestaCare’s proprietary technology with its own to offer accelerated payment and patient engagement solutions.
The contract is expected to deliver $7.5m revenue over the initial five year term. The new customer is a growing hospital operator and consolidator that manages in excess of 50 hospitals across multiple US states primarily in non-urban communities. Under the terms of the contract, Craneware will deliver its Chargemaster Corporate Toolkit® to establish and manage corporate standardisation across its entire portfolio of owned and managed facilities. This will enable system wide reporting efficiencies and the timely submission of accurate claims whilst managing billing compliance risk.
The Company’s revenue recognition policy means that the full impact of the revenue generated from this contract will be seen from FY17 onwards.
Under the new reseller agreement, VestaCare’s VestaPay technology will be integrated with Craneware’s medical necessity and price estimation products, to deliver enhanced Patient Engagement solutions, a key element of Craneware’s product roadmap. These will be delivered via Craneware’s mobile patient engagement platform, which has been developed following the acquisition of Kestros in 2014. The enhanced solutions will help providers better address the financial risks associated with the rapidly changing role of patient financial responsibility in the era of the Value Cycle. By integrating with providers’ financial systems to adjust patients’ outstanding balances on their accounts in real time, providers can offer the individual a compassionate, flexible program of repayments to address patient responsibility, dramatically reducing the hospitals’ exposure to “self-pay” debt. In addition, providers benefit from improved patient satisfaction, better pricing transparency and accelerated revenue. Craneware will receive an annual license fee from customers with an additional revenue share agreement based on patient collection improvements.
Keith Neilson, CEO of Craneware plc, commented, “Both of these agreements not only provide Craneware with significant future revenue opportunities but also further enhance the Company’s strategic value to customers. We are delighted to sign a significant new customer, which is testament to our position as a trusted partner for US healthcare organisations. The new reseller agreement deepens our reach within the early stages of patient engagement and demonstrates our leadership in the evolving market of value-based care and patient responsibility.”
For further information, please contact:
- +44 (0)20 7418 8900
- Dan Webster
- Richard Kauffer
- +44 (0)208 004 4218
- Caroline Forde
- Hilary Forde
Craneware is the leader in automated value cycle solutions that help US provider organisations discover, convert and optimise assets to achieve best clinical outcomes and financial performance. Founded in 1999, Craneware has headquarters in Edinburgh, Scotland with offices in Atlanta, Boston and Phoenix employing over 200 staff. Craneware’s market-driven, SaaS solutions normalise disparate data sets, bringing in up-to-date regulatory and financial compliance data to deliver value at the points where clinical and operational data transform into financial transactions, creating actionable insights that enable informed tactical and strategic decisions. To learn more, visit craneware.com.