Craneware extends US hospital contract in $3.5m deal

US health care-focussed value cycle specialist Craneware announced the renewal and “significant expansion” of an existing contract with a growing hospital operator in the United States on Tuesday.

The AIM-traded company said the $6m win would see the extension of a relationship that has been in place since 2007, with the renewal of the customer's existing value cycle solutions and the roll out of those same solutions to further facilities that have been recently acquired by the unnamed hospital network.

Craneware said the contract was expected to deliver $3.5m of incremental revenue over the new five year term, as the hospital network rolled out the solutions at its additional facilities.

In accordance with the company's revenue recognition policy, the majority of the revenue resulting from the contract would be recognised over future periods, adding to the group's long-term visibility of revenue under contract.

“The expansion of this relationship demonstrates the strategic importance of Craneware's value cycle solutions to our customers, as they extend their own hospital networks throughout the US,” said Craneware CEO Keith Neilson.

“The strength of our solutions and the value they deliver to all customers, including large and complex health systems, allows us to deepen our relationship with our customers as they address the challenges resulting from the continued evolution to the new value based reimbursement environment.

“Having enjoyed our positive working relationship for a decade, we now look forward to continuing to deliver sustainable value throughout this new term.”