VANCOUVER, BRITISH COLUMBIA and SCOTTSDALE, ARIZONA--(Marketwired - Jul 28, 2015) - Certive Solutions Inc. (CSE:CBP)(FRANKFURT:5CE)(OTCQB:CTVEF) ("Certive" or the "Company") is pleased to announce that Knowledge Capital Alliance ("KCA"), one of the Company's operating divisions since August 2014, has been awarded a contract extension with Maricopa County, the third largest county in the United States.
The original contract was entered into on August 8, 2012 and provided for an extension to August 31, 2018. The extension was granted effective July 24, 2015. Terms of the contract extension include KCA's evaluation of financial and operational activities of Maricopa County, in-depth evaluations of the County's departmental budgets, relating to the delivery and management of services provided to the public, assessment of the County's current financial position as compared to its Business Plan, facilitation of strategic planning sessions and other consulting services as needed by the County. As an extension of the original contract, it defines hourly rates for services provided with built in annual increases in rates.
The significance of the contract is two-fold; (a) it represents continuous recurring revenue to KCA, which is a major objective of the Company and (b) it enables KCA to avoid traditional bidding processes for the procurement of consulting engagements. Since KCA's services are provided to Maricopa County on an hourly for time and charges basis, the value of the contract cannot be accurately predicted however management estimates that the value represents an approximate 50% increase over the average of each preceding year of the relationship, thus placing the gross value, annually, to in excess of $1.5mm in revenues.
Fred Erickson, co-founder of KCA and Divisional Lead with Certive, stated that, "The awarding of this extension to KCA is yet further corroboration of the significant value proposition to Maricopa County in the services we provide to them. It is also evidence of KCA's opportunity to offer similar services to other counties throughout the United States."
Van Potter, CEO of Certive stated that, "The procurement of this contract signifies Certive's continued goal of growing its base of long term recurring revenues from major customers, thus significantly enhancing the Certive's value proposition to its stakeholders."
ON BEHALF OF THE BOARD OF DIRECTORS OF CERTIVE SOLUTIONS INC.
Van Potter, President and CEO, Director
About Certive Solutions Inc.
Certive Solutions Inc. (Scottsdale, Arizona) provides revenue cycle management solutions to the U.S. health care 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, audits and identify, bill and collect underpayments in accordance with contractual obligations between the public or commercial insurance carrier and the designated provider. The health care market is changing. Certive works with clients to provide efficient and effective solutions aligned with reform initiatives to improve health care and reduce costs.
FORWARD-LOOKING AND OTHER STATEMENTS
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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.
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