Craneware plc Significant Contract Win and Reseller Agreement (7165N)
February 02 2016 - 2:00AM
UK Regulatory
TIDMCRW
RNS Number : 7165N
Craneware plc
02 February 2016
Craneware plc
("Craneware", "the Group" or the "Company")
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.
Contract win
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(R) 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.
Reseller agreement
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:
Craneware plc Peel Hunt Alma
+44 (0)131 550 +44 (0)20 7418 +44 (0)208 004
3100 8900 4218
Keith Neilson, Dan Webster Caroline Forde
CEO
Craig Preston, Richard Kauffer Hilary Buchanan
CFO
About Craneware
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 and thevaluecycle.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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