Craneware lands $7.5m US hospitals contract

Edinburgh software company Craneware has won a 'significant' new contract with a US hospital operator.

Craneware chief executive Keith Neilson. Picture: Neil Hanna

The Aim-quoted firm, which specialises in billing software for the healthcare market, said the deal is expected to deliver $7.5 million (£5.2m) in revenues over an initial five-year term.

Its new customer is a “growing hospital operator and consolidator that manages in excess of 50 hospitals across multiple US states primarily in non-urban communities”, Craneware said.

The deal came as Craneware also announced the signing of an exclusive reseller agreement with US-based automated payment technologies and services company VestaCare. The tie-up will see the firms combine their technology to offer “accelerated payment and patient engagement solutions” and Craneware will receive an annual licence fee from customers with an additional revenue share agreement based on patient collection improvements.

Chief executive Keith 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.

“We are delighted to sign a significant new customer, which is testament to our position as a trusted partner for US healthcare organisations. 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.”