SCWorx Announces New Agreements With Two Healthcare Organizations For Its Suite of Data Management Applications Totaling a Mi...
August 13 2020 - 7:00AM
SCWorx Corp. (Nasdaq: WORX) announced today the signing of new
agreements during the second quarter with two prominent
not-for-profit Integrated Delivery Networks (IDN). The first
organization is a specialty hospital providing services
specifically to children. The second organization is a large
fully integrated multi-hospital facility with revenues exceeding $5
billion annually. Both agreements are for 5 years with a
one-time setup, annual license and monthly maintenance fees,
totaling approximately $2.5 million over 5 years. One of the
agreements can be terminated by the customer after two years, in
which case the minimum total value of both contracts would be
approximately $2.2 million. Both healthcare providers are members
of larger associations of similar acute care hospitals. The
SCWorx team will endeavor to demonstrate the benefits of the
company’s services to the other association members. SCWorx
products and services provides healthcare providers granular and
highly accurate information that links actual spend data to
utilization and ultimately to billing allowing these hospitals to
optimize their business and maximize their revenue at a time where
it is critical that hospitals operate in the most efficient manner
possible.
“Though hospitals nationally have had to go
through a significant change in their business models which
includes significant spend reductions in business related IT
product due to the emergence and persistence of the Covid-19 virus
- we continue to experience adoption of our services within the
healthcare provider market. These Providers are among the best in
the nation according to U.S. News & World Report and are
another great addition to our customer base,” said Marc Schessel,
founder and chief executive officer at SCWorx. “We’ve seen strong
customer traction within academic healthcare providers and these
customers are a testament to our ability to support these
Providers. We look forward to a long and mutually beneficial
relationship.” The Company does not expect to incur any additional
overhead resulting from these contracts. One of the Agreements is
for five years, but the agreement can be terminated after two years
and allows for up to three additional one year renewals. The other
Agreement is for five years without ability to terminate (except
for breach) and can be renewed annually in one year term
commitments.
“After an in-depth product comparison process performed by both
of these healthcare organizations they chose SCWorx for the
delivery of an enterprise wide, data governance and analytics
solution.” said Mr. Schessel, “We appreciate the confidence the
organizations have placed on our services and our people to deliver
these enhanced data services and margin improvement solutions. Our
experience, focus and commitment in delivering critical data
management services to healthcare providers will greatly benefit
these Providers by delivering to them enhanced efficiency, critical
system interoperability, sustained long-term savings, and auditable
margin improvement.”
About SCWorx Corp.
SCWorx has created The Ultraverse Platform™, an
advanced attributed virtualized item data warehouse (“VDW”)
utilizing machine learning and artificial intelligence to offer a
suite of software-as-a-service based solutions for healthcare
providers. The value proposition for customers revolves around full
integration of all solution modules with the VDW platform. The
solution modules include Virtual Item Master, contract management
and request for pricing (RFP) module, automated rebate management
module, data interoperability (EMR, MMIS, finance) module,
Automated Item Add Portal, Virtual General Ledger, and the data
analytics module. SCWorx’s Ultraverse Platform™ creates a single
source for information for healthcare providers’ data governance
and data analytics for executives.
SCWorx recently formed Direct-Worx to assist its
client base in their efforts to acquire Covid-19 related products
and services. Direct-Worx has created a Multi-Billion Dollar
Healthcare Purchasing Coalition with SCWorx customers.
Forward-Looking Statements
This press release contains “forward-looking
statements” that involve substantial risks and uncertainties for
purposes of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical facts, included in this press release
regarding strategy, future operations, future contract renewals and
terminations, future financial position, prospects, plans and
objectives of management are forward-looking statements. You can
identify many (but not all) such forward-looking statements by
looking for words such as “assumes,” “approximates,” “believes,”
“expects,” “anticipates,” “estimates,” “projects,” “seeks,”
“intends,” “plans,” “could,” “would,” “may” or other similar
expressions. You should not place undue reliance on these
forward-looking statements. Such statements are based on
management’s current expectations and involve risks and
uncertainties. Actual results and performance could differ
materially from those projected in the forward-looking statements
as a result of many factors, including, without limitation, early
termination of agreements, securing future contracts and orders,
future product sourcing, supply disruptions, containing costs, the
ability to project future cash utilization and reserves needed for
contingent future liabilities and business operations, the
availability of sufficient resources of the company to meet its
business objectives and operational requirements and other
important factors that are detailed in filings with the Securities
and Exchange Commission made from time to time by SCWorx, including
its Annual Report on Form 10-K for the year ended December 31,
2019, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K. Matters described in forward-looking statements may also be
affected by other known and unknown risks, trends, uncertainties
and factors, many of which are beyond the company’s ability to
control or predict. SCWorx undertakes no obligation to release
publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Contact:
Tim Hannibalthannibal@scworx.om
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