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Press Release - Claimsnet.com inc. (CLAI.OB-OTC: BB) |
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“There is still a lot of growth taking place in the healthcare industry. The claims are growing in their numbers and complexity. People want to be paid faster and more efficiently and they are trying to reduce the administrative costs associated with the processing of claims. We are helping them do that and we think there is a good opportunity going forward of continued growth both organically and by acquisition.” - Donald B. Crosbie (CLAI) (Interview published May 9, 2008) |
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FOR IMMEDIATE RELEASE:
Claimsnet Announces Implementation of New Sales Strategy
Dallas, Texas – September 30, 2008 - Claimsnet.com (OTCBB: CLAI.OB), a leading provider of electronic transaction and paper claim handling services to the healthcare industry, announces results of its recently adopted sales strategy. In the second quarter of 2008, Claimsnet hired two new sales people, one as vice president of sales with a focus on the payer/health care insurance segment of its business and another as director of provider sales to focus on the physician/hospital community. As a result of these hires and our increased focus on expanding our product platform in both of these segments, we have secured new contracts with both payers and providers and we believe both segments are now supported by a good sales lead pipeline that our sales team continues to cultivate. Although several months are required before our top line sales benefit from these activities, we do expect to enjoy some growth in our monthly run rate of transactions and recurring monthly revenues.
Claimsnet has also added services to existing customers associated with transactions other than claims. These services relate to, among other areas, ERA (electronic remittance advice) transactions and additional edits of paper claims.
Based on our operating history and recurring revenues, management now projects for the remainder of our fiscal year ending December 31, 2008 transaction volume handled on a daily basis to increase by more than 50% compared to fiscal year 2005, the year in which we completed fund raising activities with many significant investors. This growth is the result of maintaining long term customer relationships, expanding our customer base, offering additional services to all of our customers, and adding new customers associated with the paper conversion and claims repricing services purchased from Acceptius earlier this year. Our total number of direct payer customers now exceeds 60, along with a growing number of direct provider connections.
An added benefit to our customers is the more than 35 connections that have been developed with other claims clearinghouses in our industry. These relationships allow more transactions to be maintained in an electronic format, rather that being printed to paper, and we expect to continue to add more of these connections as we expand our business relationships.
For our fiscal year ending December 31, 2008, we now expect our total transaction volume to reach approximately 10,000,000, which would represent an increase of more than 50% compared to our 2005 fiscal year results. Similarly, we expect our top line sales revenue for fiscal 2008 to represent an increase of more than 60% compared to our 2005 fiscal year end results. We also estimate, based on the results so far this year and on management projections for the remainder of 2008, that our revenue for fiscal 2008 will exceed that of 2007 by approximately 25%. Finally, we anticipate revenue for our 2009 fiscal year to increase over our expected 2008 fiscal year by approximately 35%.
In summary, we believe that the efforts we have made by adding qualified sales people, building out our infrastructure, connectivity and customer support services, are and will continue to pay off as we look towards the remainder of this year and into 2009. About Claimsnet.com - Claimsnet is a leading provider of electronic transaction services for the healthcare industry. Headquartered in Dallas , Claimsnet offers services that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet can be found at the Company’s web site at www.claimsnet.com. Safe Harbor Statement Under the Private Securities Litigation Act 1995 - With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. Our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of our competitors, dependence on business partners and distribution channels, and continued use of the Internet. Further information on our risk factors is contained in our quarterly, annual, and other periodic reports as filed with the Securities and Exchange Commission
Don Crosbie
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