Business
Significant Contract Win and Reseller Agreement
Significant Contract Win and Reseller Agreement.
About this update from Craneware Plc
[{"type":"text","content":"\n \nRNS Number : 7165N Craneware plc 02 February 2016 \n\nCraneware plc\n(\"Craneware\", \"the Group\" or the \"Company\")\n \nSignificant Contract Win and Reseller Agreement\n \n2 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.\n \nContract win\nThe 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.\n \nThe Company's revenue recognition policy means that the full impact of the revenue generated from this contract will be seen from FY17 onwards. \n \nReseller agreement\nUnder 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' exposu...