|By Marketwired .||
|May 17, 2014 12:10 AM EDT||
SCOTTSDALE, ARIZONA -- (Marketwired) -- 05/17/14 -- Certive Solutions Inc. (the "Company or Certive") (CSE: CBP) is pleased to announce that Titan Health Management Solutions Inc. (Titan Health) has won a significant contract to recover over USD$2,100,000 in capital cost expenditures made by a regional US 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 insofar as the recoveries are legislated and required to be made. 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 unit that will serve to drive bottom line performance of the consolidated enterprise.
Titan presently generates approximately USD$2,000,000 in annual gross revenues and is on track to achieve an annualized revenue run rate of approximately USD$6,000,000 by December 31, 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$450K and USD$1M 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 that "Securing this contract corroborates this unique and little known opportunity in revenue life cycle management and further evidences the unique focus of Titan Health in this exciting market. Finding uncharted revenue recovery opportunities where our cloud workflow tools 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.
Chief Financial Officer of Certive Solutions Inc.