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
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.