Certive Solutions Inc.: Titan Health Wins USD$2,100,000 Capital Cost Recovery Contract
May 20 2014 - 9:26AM
Marketwired Canada
Certive Solutions Inc. (the "Company or Certive") (CSE:CBP) is pleased to
announce that Titan Health Management Solutions Inc. (Titan) has won a
significant contract to recover over USD$2,100,000 in capital cost expenditures
made by a regional U.S. hospital for costs incurred to build a new hospital
facility. The recovery will net approximately USD$500,000 to Titan based upon
the contractual relationship with the customer. The claims will be made against
15 commercial insurance providers, in strict compliance with legislation that
requires these capital cost recoveries to be paid. New hospitals are eligible to
make claims similar to the currently contracted recovery based upon bed
utilization over a pre-determined period of time. Capital cost recovery provides
for a one-time recovery of a portion of capital costs invested into new
hospitals for a period of up to three years after completion of the investment.
Titan has a total of 6 similar capital cost recovery opportunities that await
contractual approval. Once approved, the only significant impediment to the
recovery is processing time as the recoveries are legislated and required to be
paid. Of further significance, is the fact that the application for recovery is
straightforward and requires a minimal amount of staffing activity. Therefore it
represents a highly accretive business that will serve to drive bottom line
performance of the consolidated enterprise.
Titan has historically generated approximately USD$2,000,000 in annual gross
revenues. Titan is on track to achieve revenues of approximately USD$6,000,000
in 2014.
Certive and Titan estimate that approximately 50 new hospitals in the U.S.
qualify for a capital cost recovery with each opportunity representing between
USD$450,000 and USD$1,000,000 as the Company's proportionate share in the
recovery.
As previously announced, Certive proposes to complete the acquisition of the
Titan assets on or before June 30, 2014.
Van Potter, CEO of Certive, commented, "securing this contract validates this
little known opportunity in revenue life cycle management and further evidences
the unique focus of Titan in this exciting market. Finding uncharted revenue
recovery opportunities where our cloud technologies can add immense value and
ultimately greater and more efficient recovery will be a key factor in our
growth and success."
ON BEHALF OF THE BOARD OF DIRECTORS OF CERTIVE SOLUTIONS INC.
Van Potter, President, CEO, Director
About Certive Solutions Inc.
Certive Solutions Inc. (Scottsdale, Arizona) provides cloud revenue cycle
management solutions to U.S. hospitals, delivered collaboratively, utilizing
proprietary workflow document management and analytics technologies tailored to
healthcare business processes. Certive is currently focused on the denied claim
segment of revenue cycle management. Certive's solutions enhance the efficiency
and effectiveness of denied claims recovery in a revenue sharing relationship
that improves hospital net operating results.
The forward-looking information contained in this press release is made as of
the date of this press release and except as required by applicable law, the
company does not undertake any obligation to update publicly or to revise any of
the included forward-looking information, whether as a result of new
information, future events or otherwise. By its very nature, such
forward-looking information requires the company to make assumptions that may
not materialize or that may not be accurate. This forward-looking information is
subject to known and unknown risks and uncertainties and other factors, which
may cause actual results, levels of activity and achievements to differ
materially from those expressed or implied by such information. Neither the
company nor the Canadian Securities Exchange accepts responsibility for the
adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Certive Solutions Inc.
Brian Cameron
Chief Financial Officer
480-922-5327
bcameron@certive.com
Certive Solutions (CSE:CBP)
Historical Stock Chart
From Nov 2024 to Dec 2024
Certive Solutions (CSE:CBP)
Historical Stock Chart
From Dec 2023 to Dec 2024