Craneware reveals deal with US hospital group

Craneware was celebrating a new contract win on Tuesday, having effectively signed up more than 50 US hospitals to its healthcare revenue systems.

The AIM-listed provider of value cycle solutions to the US healthcare market said the contract was expected to deliver $7.5m (£5.2m) revenue over the initial five year term.

Craneware described the customer as a growing hospital operator and consolidator that managed in excess of 50 hospitals across multiple US states - primarily in non-urban communities.

Under the terms of the contract, Craneware said it would deliver its Chargemaster Corporate Toolkit to establish and manage corporate standardisation across the group's entire portfolio of owned and managed facilities.

The company's revenue recognition policy would result in the full impact of the contract being seen from FY17 onwards.

"We are delighted to sign a significant new customer, which is testament to our position as a trusted partner for US healthcare organisations", said Craneware CEO Keith Neilson.

Additionally, the company had agreed terms for a new reseller deal with VestaCare, whose VestaPay technology would be integrated with Craneware's medical necessity and price estimation products.

The integrated products would be delivered via Craneware's mobile patient engagement platform which was developed following the 2014 acquisition of Kestros.

"The new reseller agreement deepens our reach within the early stages of patient engagement, and demonstrates our leadership in the evolving market of value-based care and patient responsibility", Neilson said.

"Both of these agreements not only provide Craneware with significant future revenue opportunities, but also further enhance the company's strategic value to customers", he concluded.