Titan Health Wins USD$2,100,000 Capital Cost Recovery Contract
May 17 2014 - 12:09AM
Marketwired
Titan Health Wins USD$2,100,000 Capital Cost Recovery Contract
SCOTTSDALE, ARIZONA--(Marketwired - May 17, 2014) - 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.
Brian CameronChief Financial Officer of Certive Solutions
Inc.480-922-5327bcameron@certive.com
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