Two Edinburgh firms in distribution deal
Neilson and Sibbald tie-up tech partnership for US growth
Keith Neilson, chief executive of medical billing company Craneware, has secured a partnership with Aridhia Informatics headed by one of Scotland’s technology veterans David Sibbald (pictured).
The deal will see Craneware extend Aridhia’s analytics platform into US hospitals where it will be used to improve patient care and cut costs.
A quarter of US hospitals now use Craneware’s software and its partnership with Aridhia will support these hospitals’ growing requirement for informatics solutions at a time when more medical insurers are moving away from fee-for-service towards performance-based reimbursement.
Mr Neilson said Aridhia’s expertise would improve the prospects of patients to recover.
Mr Sibbald, who is chairman and chief executive of Aridhia, said the deal with Craneware would extend his eight-year-old company’s activities into a key market.
He made a personal fortune in the sale of Atlantech Technologies in 2000 when it was acquired by Cisco Systems for $180 million (£120m at today’s exchange rate). After that he went on to set up Sumerian and Aridhia which have both established footholds in the technology market.
He said: “US healthcare providers have traditionally focused on financial outcomes and cutting costs but they are increasingly adopting a patient centric approach which will, in turn, have a positive effect on their bottom line.
“Craneware works with some of the biggest healthcare providers in the US so we’re very pleased to be partnering with them.”
Founded in 1999, Craneware has offices in Georgia, Arizona, Massachusetts and Tennessee employing over 200 staff.
Today’s deal coincided with half-year figures revealing pre-tax profit up 10% from $4.8m to $5.3m on a 2% increase in revnue from $21.1m to $21.6m. The board has declared an interim dividend of 6.3p (2014: 5.7p).
Mr Neilson said: “We have seen a continued increase in sales during the period, building on the record year in 2014 and this, combined with Craneware’s strong product suite, clear strategic direction and high levels of revenue visibility, means that we look to the future with confidence.”