Benzinga | Aug 13, 2020 07:05AM EDT

SCWorx Announces New Agreements With Two Healthcare Organizations For Its Suite of Data Management Applications Totaling A Minimum Of $2.2M Over 5 years

NEW YORK, Aug. 13, 2020 (GLOBE NEWSWIRE) -- SCWorx Corp. (NASDAQ:WORX) announced today the signing of new agreements during the second quarter with two prominent not-for-profit Integrated Delivery Networks (IDN). The first organization is a specialty hospital providing services specifically to children. The second organization is a large fully integrated multi-hospital facility with revenues exceeding $5 billion annually. Both agreements are for 5 years with a one-time setup, annual license and monthly maintenance fees, totaling approximately $2.5 million over 5 years. One of the agreements can be terminated by the customer after two years, in which case the minimum total value of both contracts would be approximately $2.2 million. Both healthcare providers are members of larger associations of similar acute care hospitals. The SCWorx team will endeavor to demonstrate the benefits of the company's services to the other association members. SCWorx products and services provides healthcare providers granular and highly accurate information that links actual spend data to utilization and ultimately to billing allowing these hospitals to optimize their business and maximize their revenue at a time where it is critical that hospitals operate in the most efficient manner possible.

"Though hospitals nationally have had to go through a significant change in their business models which includes significant spend reductions in business related IT product due to the emergence and persistence of the Covid-19 virus - we continue to experience adoption of our services within the healthcare provider market. These Providers are among the best in the nation according to U.S. News & World Report and are another great addition to our customer base," said Marc Schessel, founder and chief executive officer at SCWorx. "We've seen strong customer traction within academic healthcare providers and these customers are a testament to our ability to support these Providers. We look forward to a long and mutually beneficial relationship." The Company does not expect to incur any additional overhead resulting from these contracts. One of the Agreements is for five years, but the agreement can be terminated after two years and allows for up to three additional one year renewals. The other Agreement is for five years without ability to terminate (except for breach) and can be renewed annually in one year term commitments.

"After an in-depth product comparison process performed by both of these healthcare organizations they chose SCWorx for the delivery of an enterprise wide, data governance and analytics solution." said Mr. Schessel, "We appreciate the confidence the organizations have placed on our services and our people to deliver these enhanced data services and margin improvement solutions. Our experience, focus and commitment in delivering critical data management services to healthcare providers will greatly benefit these Providers by delivering to them enhanced efficiency, critical system interoperability, sustained long-term savings, and auditable margin improvement."