SCOTTSDALE, ARIZONA--(Marketwired - Sept. 8, 2016) - Certive Solutions Inc. (OTCQB:CTVEF) (CSE:CBP) - ("Certive" or the "Company"), is pleased to announce that gross revenues for the month ended August 31, 2016, totalled $548,081. Of this total, $395,525 was generated by the Titan Division, with an operating margin of $234,237 or 59% of sales. The Titan Division was profitable for the month, booking $132,610 in net operating profit or 33% of divisional revenues. Titan Divisional results for June, July and August 2016 demonstrate solid performance as it continues to focus on its high margin zero balance business.
The previously announced contract with a major U.S. hospital system is scheduled for kick-off in late September and will be a significant source of revenue for the Company's Omega Division, estimated at $150,000 per month. The Omega Division has the capacity to scale to monthly revenues of $1 million with no additional commitment to labor or occupancy costs.
During the past month, the Company was asked to provide a proposal to expand a significant category of existing services to one of its major customers. The contract represents over $5 million in annual revenues with an estimated gross margin of 35%. Any expansion of the relationship will be subject to the negotiation of final terms as to pricing and scope.
As the Company expands its geographic outreach to new markets, including Texas, management has identified a group of additional revenue cycle services that are seen as particularly germane to the issues facing U.S. hospitals. These services will include self-pay and balance after insurance collections. Quantified opportunities exist in Texas and with the direct assistance of the Company's advisory council, certain connectivity has been established with decision markers there, leading to potential contracts.
Van Potter, CEO of the Company stated that "Certive continues to grow its base of business and engage in cross selling among the divisions. Our appointment of a COO and VP of Sales has and will continue to have a strong impact upon our organic growth of existing and new service offerings throughout the following months."
About Certive Solutions Inc.
Certive Solutions Inc. (Scottsdale, Arizona) provides revenue cycle management solutions to the U.S. healthcare market. Certive's claim audit and recovery services, billing services, and software solutions help providers work with payers to efficiently manage the reimbursement process and improve financial performance. Certive's highly skilled and experienced management team, combined with proprietary workflow and analytics, audit and identify, and bill and collect, underpayments in accordance with contractual obligations between the public or commercial insurance carrier and the designated provider. The healthcare market is changing. Certive works with clients to provide efficient and effective solutions aligned with reform initiatives to improve healthcare and reduce costs.
FORWARD-LOOKING AND OTHER STATEMENTS
This press release contains forward-looking statements. These statements relate to future events or future performance and reflect our expectations and assumptions regarding our growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect our current beliefs and are based on information currently available to us. In some cases, forward-looking statements can be identified by terminology such as "may", "would", "could", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts.
A number of factors could cause actual events, performance or results, including those in respect of the foregoing items, to differ materially from the events, performance and results discussed in the forward looking statements.
Factors that could cause actual events, performance or results to differ materially from those set forth in the forward-looking statements include, but are not limited to:
- the effect of continuing operating losses on our ability to obtain, on satisfactory terms, or at all, the capital required to remain a going concern;
- the ability to obtain sufficient and suitable financing to support operations, development and commercialization of our services;
- the risks associated with the development of our technology;
- the risks associated with the increase in operating costs from additional development costs and increased staff;
- the timing and nature of feedback from customers; and
- our ability to successfully compete in our targeted markets.
Although the forward-looking statements contained in this press release are based on what we consider to be reasonable assumptions based on information currently available to us, there can be no assurance that actual events, performance or results will be consistent with these forward-looking statements, and our assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release. Forward-looking statements made in this press release are made as of the date of the original document and have not been updated by us except as expressly provided for in this press release. As required by securities legislation applicable to reporting issuers, it is our policy to update, from time to time, forward-looking information in our periodic management discussions and analyses and provide updates on our activities to the public through the filing and dissemination of news releases and material change reports.