An Edinburgh-based healthcare billing software specialist has unveiled two “significant” contracts with new customers in the US hospital provider market, with the deals together expected to deliver revenue of about $8.5 million (£6.1m) over their initial terms.
Craneware, which was founded in 1999 and also has offices in Atlanta, Pittsburgh and Needham, Massachusetts, said the first contract with a large blue-chip healthcare provider sees its “value cycle” products being deployed across the customer’s 20 hospitals. Additionally, Craneware said its offering will be “an integral part of this provider’s major system change, helping to ensure revenue integrity during the initiative and beyond” with the contract expected to deliver about $5m of revenue over its initial multi-year term.
The second contract with an “innovative” surgical hospital is part of that organisation’s strategic growth plans, deploying several services including the Trisus Platform and Trisus Claims Informatics. Aim-quoted Craneware said this provider is focused on improving all aspects of its value cycle, and the multi-year contract is expected to deliver about $3.5m of revenue over its initial term.
Craneware chief executive Keith Neilson said the wins “confirm that the positive momentum and financial success we reported in the first half of the year has continued into the second half.
“This is further evidence of the strategic importance and value that Craneware’s solutions can bring to all sizes and complexities of hospital healthcare providers, as they look to address the challenges they face with the ongoing evolution of the US healthcare market.
“This continued momentum across the entire business, combined with the strength of our solution set, means we are well-positioned to support our customers in the new era of value-based care and deliver increasing stakeholder value.”
Craneware added that most of the revenue resulting from the two new contracts will be recognised over future periods, “adding to the group’s long-term visibility of revenue under contract, supporting ongoing financial performance”.
The firm said last month that it had won a major five-year contract in the US worth at least $16m. In a trading update issued at the same time, it said it had continued to perform strongly in the first half and expects to report double-digit increases in both revenue and adjusted earnings.