As a general rule, the most successful
man in life is the man who has the best information
In a very recent article titled ‘Cloud Revenue Cycle Management’ I introduced you to Certive Solutions CSE – CBP.
Over the past week since I published ‘Cloud Revenue Cycle Management’ Certive has put out two news releases… and added 22 new hospital clients, and thereby a clear path to a significant increase in projected cash flow per month!
The first release, dated August 26th was in
regards to a four hospital system zero balance revenue share
contract. Zero Balance recoveries represent one of the highest margin
lines of business and securing these contractual relationships is a key part of
Certive’s growth strategy.
On August 28th Certive published news
regarding closing of another contract - an 18 hospital system to provide
billing support services and identify underpayment recoveries.
Before
last week’s two news releases Certive had 25 hospitals under contract.
After last week’s news Certive added 22 hospitals.. . It
will take time for Certive to realize the cash flow from the new hospital
relationships but clearly Certive is progressing to its stated target of $6mm
in revenue by year’s end.
As they grow from approximately $250,000 in monthly revenue
to $500,000 per month and more, they will achieve certain economies of scale
and should reach a critical mass where margins improve. This is without
factoring the ongoing efficiencies attributable to their technology and its
ability to enhance the performance of the hospitals to recoup a greater
percentage of denied claims, generating more income for the hospitals and for
Certive.
Here’s
an Ahead of the Herd heads up - Certives market valuation is moving towards a
model assessing future opportunity as opposed to current operating
size. When the company starts trading in the US markets on the QB system ,
they will attract a much more forward looking valuation consistent with cloud
based enterprises in the US - 5x on revenue is a conservative estimate on
my part.
Conclusion
In my first Certive report I said; “Searching for a company that is launching into a fast-growth period in
an attractive market? If getting ‘in’ at the start of building something
special is what you are looking for then look no further then Certive Solutions
CSE-CBP.”
At the end of that report I told you Certive Solutions CSE –
CBP should be on everyone’s radar screens.
Is it on yours?
If not, it should be!
Richard (Rick) Mills
Richard lives with his family on a 160 acre ranch in
northern British Columbia. He invests in the resource and
biotechnology/pharmaceutical sectors and is the owner of Aheadoftheherd.com.
His articles have been published on over 400 websites, including:
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Richard’s site please contact him for more information, rick@aheadoftheherd.com
***
Legal Notice / Disclaimer
This document is not and should not be
construed as an offer to sell or the solicitation of an offer to purchase or
subscribe for any investment.
Richard Mills has based this document on
information obtained from sources he believes to be reliable but which has not
been independently verified.
Richard Mills makes no guarantee,
representation or warranty and accepts no responsibility or liability as to its
accuracy or completeness. Expressions of opinion are those of Richard Mills
only and are subject to change without notice. Richard Mills assumes no
warranty, liability or guarantee for the current relevance, correctness or
completeness of any information provided within this Report and will not be
held liable for the consequence of reliance upon any opinion or statement
contained herein or any omission.
Furthermore, I, Richard Mills, assume no
liability for any direct or indirect loss or damage or, in particular, for lost
profit, which you may incur as a result of the use and existence of the
information provided within this Report.
Richard does not own shares of Certive
Solutions CSE – CBP. Certive is an advertiser on Richard’s site
aheadoftheherd.com.
For a look at Richards portfolio click here.