Craneware Plc (LON:CRW), the company that supplies automated revenue integrity systems to the US healthcare market, has signed a four year contract to deliver its most recently launched solution, Supplies ChargeLink, to a long-standing US hospital customer. The deal is worth over $1.5m over the term of the contract and takes the total number of Craneware products in use at the hospital to four. Due to Craneware's annuity revenue recognition policy the majority of revenues will be recognised in future years. Shares in Craneware slipped by 1.6% during the morning but the stock has risen substantially from 388.5p to 560p since the start of September.

Launched in December 2009, Supplies ChargeLink became Craneware's fifth product and sits within the company's Supply Management product family. The system helps hospitals better manage and optimise reimbursement for chargeable supplies, automating the manual processes still used in the majority of US hospitals. The growing fiscal and legislative pressures currently being experienced by US hospitals mean management teams are seeking ways of protecting slim operating margins in order to continue to deliver high standards of patient care. Craneware's product suite integrates clinical and financial data, enabling a hospital to capture all the reimbursement owed to them, to provide visibility into what they spend on supplies and ensure that they price, charge and code effectively and defensibly. This is the largest Supplies ChargeLink contract signed to date, adding to Craneware's growing sales momentum.

Keith Neilson, the chief executive of Craneware, said: “This is a significant deal for us, validating our recent investment into both product development and our sales team. We believe our solutions such as Supplies ChargeLink are uniquely positioned to address a growing requirement within the US healthcare industry for increased efficiencies, whilst managing mounting levels of compliance risk. We continue to focus on the execution of our growth strategy and are confident in our ongoing success.”

Earlier this month, Craneware reported that contracted sales in the year to June 30, 2010, had risen by 24% to $58.1m, with revenues up 23% to $28.4m, future revenues under contract up 49% to $89.8m and pre-tax profits up 24% to $7.3m.

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