Welcome!

News Feed Item

Certive Solutions Inc. (CSE: CBP) Announces Closing the Purchase of Titan Health Management Solutions Inc.

SCOTTSDALE, ARIZONA -- (Marketwired) -- 07/03/14 -- The Board of Directors of Certive Solutions Inc. (CSE:CBP) (the "Company") is pleased to announce that effective July 3, 2014, the Company has successfully completed the purchase of the assets comprising, among other things, material contracts, intellectual property, management contracts, and employees of Titan Health Management Solutions Inc. ("Titan"), with offices in Scottsdale and Tucson, Arizona.

The terms of the acquisition are summarized as follows:

The purchase price for the assets is USD$2,711,000 and will be paid in two cash installments, USD$100,000 due upon signing and USD$208,000 due on September 1, 2014; a secured convertible promissory note for USD$1,800,000; the issuance of 1,000,000 common shares at $0.30 per share; and the issuance of 1,250,000 preferred shares at a deemed price of $0.30 per share.

The Company contemplates the payment of a finder's fee for the introduction of Titan to the Company. The finder's fee has been disclosed to Titan and will be paid in shares of the Company and in strict compliance with the rules governing the payment of finder's fees as set out by CSE policy guidelines.

The Purchase Agreement provides for a transitional period commencing July 3, 2014 and concluding on September 1, 2014, at which time the remaining cash portion of the purchase price will be paid, the Titan employees will become the Company's employees, the contracts between Titan and their customers will transfer to the Company with the customer's approval, and all other operationally driven components of the transaction will be effected. During the transitional period the Company will operate the business pursuant to a Transitional Services Agreement which defines the collaborative role of each entity as the transition is completed. The Company will also enter into employment agreements with Mr. Thomas Hoehner and Mr. Todd Hisey, principals of Titan, on terms and conditions to be negotiated and mutually agreed upon between the Company and each of Mr. Hoehner and Mr. Hisey. As a subsequent condition post-Closing, Titan and the Company agree to finalize the terms of such employment agreements on or before September 1, 2014. The majority of the Company's 50 employees are located at the Company's Tucson campus.

The Company is a cloud provider of claims audit and recovery solutions in the revenue cycle management segment of the U.S. health care market. The Company's solutions combine deep domain expertise, industry connectivity and cloud technologies that drive efficiency, scalability and insight into the claims audit and recovery process generating significant revenues in a low-friction revenue sharing business model. The Company's current focus is on U.S. hospitals. The Company's solutions utilize workflow technologies and analytics that increase both the speed and amount of revenue recovery, and enable scaling of existing collection efforts.

The Company's cloud business process management software solutions are based on a combination of licensed and proprietary platforms that utilize a combination of workflow technologies, analytics, and business intelligence processes. The Company has assembled a proven, highly credentialed executive team with targeted experience in business process management software.

U.S. hospitals write off between 3% and 17% of their annual revenues to denied claims from coding errors, lack of pre-approvals, lapsed coverage and timed out claims as well as incorrect classification codes. More than 50% of these claims are written off by hospitals without any intervention. Denied claims are forecast to grow by over 400% in the next four years driven by increasing complexities of payer reimbursement methodologies in both public and private insurance systems, adding to already increasing financial pressure hospitals experience from several factors including:


--  Decreasing reimbursement rates from both government and commercial
    payers. 
--  An aging population that reduces their ability to shift costs between
    younger commercially insured patients and older government insured
    patients, and the impact from the Patient Protection and Affordable Care
    Act (PPACA), "Obamacare", that decreases Medicare Advantage, lowering
    the threshold for Medicaid eligibility, and creating dual eligibility
    membership in Medicare and Medicaid.  
--  Diseases are classified by the World Health Organization as
    International Classification of Diseases (ICD) codes. The U.S. market
    will be moving from ICD-9 to ICD-10 codes in 2015 which will increase
    the number of billing codes by a factor of 6, significantly increasing
    the complexities of claims reimbursements.  
--  Vast inefficiencies of the U.S. medical systems. 

The total addressable denied claims U.S. market size from hospitals is estimated to be USD$50 billion annually. Historical data shows that about one in every two denied claims is overturned, however recent trends indicate that approximately 67% of all denials are appealable, a result closer to two in every three claims.

In the past several years, gross charges denied by payers have grown to over 10% of the billing value of all claims submitted and is trending higher.

With the acquisition of Titan, the Company expands its capabilities as a fully credentialed supplier of claims audit and recovery solutions to U.S. hospitals. There are innumerable sources of "hidden" cash in virtually every hospital or system that can be captured through the claims audit and recovery process of referring difficult denials from difficult payers to skilled and trusted external providers who have experience in denial management process. Over the past 12 years Titan has provided these services to hospitals delivering improved claims recoveries and better positioning hospitals to negotiate with payers.

Van Potter, CEO of the Company, stated that "the completion of the Titan acquisition will pave the way for executing on the Company's long-term objectives which include identifying new opportunities to provide an expanded range of services to our existing customers enabled by our proprietary technology and to move aggressively on further acquisitions in this market."

Thomas Hoehner, CEO of Titan, commented "with access to both capital and technology resources, the consolidated group will now be positioned to rapidly expand both core services to existing customers and to broaden the Company's scope and depth in all categories of denied claim recovery."

The Company's offering of convertible promissory notes announced on June 24, 2014 continues to be sold and will be utilized to fund working capital needs for the consolidated entity.

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. Certive's solutions enhance the efficiency and effectiveness of denied claims recovery in a revenue sharing relationship that improves hospital net operating results.

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 company nor the Canadian Securities Exchange accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.