Medical billing software company extends market reach in US
Medical billing software developer Craneware has reported strong sales and profit growth for the year to June 2012.
The company, which has offices in Edinburgh and Livingston but sells all of its software products to the American healthcare market, reports an eight per cent rise in turnover for the year to £25.8 million, with adjusted pre-tax profits up 29 per cent to per cent to £7.05million.
In full-year results posted today, Craneware said it has extended its market reach in the US healthcare market through two “significant” deals, one providing entry into the Federal and State Healthcare market and the other taking Craneware’s software into a non-competitive parallel market.
Renewal rates have also remained high, which has lifted operational cash flow slightly to £6.67 million.
Craneware chief executive, Keith Neilson, said: “In a mixed trading environment Craneware delivered a solid level of growth across key financial and operational metrics, confirming the health of the business and giving a high degree of confidence for the future.
“Added pressures on US hospitals have led to an increased sales and opportunity pipeline for our products as we move into the current financial year. Craneware’s solutions help US healthcare providers drive business improvements that will result in better financial health.
“In this turbulent, demanding environment, hospitals need financial accuracy, visibility and shared accountability to survive.
“Fiscal and regulatory drivers are expected to increase in the year ahead as they push for greater transparency and accuracy, and although this creates a challenging ever-evolving marketplace, it ultimately increases the opportunities for Craneware’s solutions.
“Craneware is a trusted and established part of the fabric of the US healthcare industry, with a client base consisting of around a quarter of all US hospitals.
“We are confident that the business is ideally placed with its in-house expertise, industry-leading product suite and balance sheet strength to help US healthcare organisations deal with their increasing fiscal and regulatory pressures.
“Furthermore with revenue visibility having returned to the historic high levels, we view the future with confidence.”
Craneware's share price tumbled nearly 20 per cent in February when the firm reported a 13 per cent drop in first-half pre-tax profits, despite a 13 per cent rise in revenues as a result of losing a third-party contract in January.
The company went on to announce a new multi-million dollar channel partner which will guarantee minimum payments of $7,500,000 (£4.72 million) from February 2012 to the end of June 2014.
Last week Craneware announced it had secured US federal agency certification for its software to allow electronic submission of medical records to auditors.
Federal agency, the Centers for Medicare and Medicaid Services (CMS), awarded Craneware electronic submission of medical documentation (esMD) certification for its InSight Audit solution.
That announcement was significant because Craneware's InSight Audit software provides healthcare organisations in the US with one central location for managing medical claims audits.
The US Government has been auditing payments made through its Medicare scheme in an attempt to reclaim millions of dollars in overpayments.
Craneware announced in its year-end results it expected to see growing demand for medical billing audit software as providers look to rectify billing mistakes.