SCOTTSDALE, ARIZONA--(Marketwired - Feb. 21, 2014) - The Board of Directors of Certive Solutions Inc. ("Certive" or the "Company") (CSE:CBP) is pleased to announce the following material corporate and business development activities that have been previously disclosed in the Company's MD&A for the quarter ended November 30, 2014.
- On November 12, 2013 the Company announced the launch of its web site www.certive.com. The web site defines the Company's brand and direction within the revenue management lifecycle of the U.S. healthcare system. In particular it identifies many near term targeted opportunities in a subset vertical market known as denied claims management, a category which is more particularly described below.
- For the three months ended November 30, 2013 the Company recorded its first revenue in the aggregate sum of C$20,000 from consulting services provided to a strategic partner engaged in complementary sub-segments of revenue lifecycle management. The engagement will lead to a larger statement of work to design and develop an automated workflow solution for level of care billing by emergency departments in U.S. hospitals. Revenue is regularly lost by hospitals due to a reluctance to bill to the maximum level of care associated with the delivery of services based on lack or process in care documentation.
- During the quarter ended November 30, 2013, the Company established strategic relationships with two Arizona-based companies that have both local connectivity and credentialed relationships with hospitals located in Arizona and other states. Through these associations the Company is securing the infrastructure to support and deliver its automated workflow solutions to a total of 20 hospitals currently being serviced by the two partners. Initially, the Company will be participating in revenue recovery from one such hospital, targeting one category of denied claims.
- During the quarter that ended November 30, 2013, the Company invested a total of C$175,000US into the design and development of its proprietary cloud technology solution for denied management claims. This expenditure represents the Company's focus and direction on developing solution based services supported by our technology.
- On January 17, 2014, the Company announced the closing of its private placement of common shares totaling C$2,100,000 by way of the sale of 21,000,000 Units at a price of C$0.10 per Unit. Each Unit is comprised of one share one half-share purchase warrant. Two half-share warrants entitle the purchaser to purchase one share at a price of $0.15 per share. In addition, on January 17, 2014, the Company also announced a non-brokered private placement of convertible debentures. The total amount of the debenture is C$400,000 and is convertible into 2,666,666 common shares. Interest will be paid on the debenture at 5% per annum. The term of the debenture is 5 years. Both placements replace the previously announced C$9,600,000 private placement of common shares which has been terminated.
The net proceeds of the new private placements are being used to develop specific software solutions applicable to automating workflow in revenue lifecycle recovery, engaging in market development activities, engaging with strategic partnerships and for general working capital purposes.
- Business Development: During the last five months, the Company initiated a two phase program to generate near term revenues from both revenue recovery in U.S. hospitals and specifically, Arizona based hospitals, and from consultative services offered in the development of specific use cases.
A summary of these programs is as follows:
- Identify two strategic associations with connectivity in selected hospitals in Arizona and leverage the connectivity to establish near term revenue opportunities. Two such relationships have be attained with the result that the Company will be participating in revenue generated from the recovery of denied claims in one hospital commencing in February 2014. The number of hospitals represented by these strategic relationships total 20, five of which are located in Arizona. The revenue model will be a combination of revenue share and consulting services.
- Establish an advisory group with additional connectivity to hospitals and hospital systems outside of Arizona. The Company has established an advisory group consisting of three highly credentialed individuals who will make introductions to known decision makers in various hospitals located throughout the U.S. Initially, all revenue generation activity will be focused on denied claims recovery and the various subset categories.
- Commitment to develop technology solutions that will drive revenue recovery and foster strong and growing alliances with hospital decision makers. During the quarter, the Company spent C$175,000 as a first step to developing its unique solution set for its targeted markets. This expenditure provided support to our sales and marketing initiatives and forged strong ties to our technology partnerships. Management anticipates ongoing developmental expenditures.
- Initiate involvement in public health and safety markets with two highly credentialed partners in Arizona. The Company has established two relationships in the related field of public health and safety. These partnerships will work closely together with the Company to develop and facilitate a cohesive workflow solution enablement toolset for the management of public health and safety crisis, initially in Arizona and extending throughout the U.S. One of the partners will serve to market the solution to other counties in the U.S. The revenue model will be a combination of consulting services and cloud licensing fees.
- The Company has entered into agreements with two strategic partners and will collaborate in the collection of automobile accident claims for a physician practice group located in Phoenix, Arizona.
- Expand the number of hospitals under contract in both Arizona and other states targeting denied claims using strategic partnerships.
- Identify acquisition targets, who are currently service providers in the Company's targeted segments of healthcare.
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.
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 Canadian National Stock Exchange nor its regulation services provider (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certive Solutions Inc.
Chief Financial Officer