Titan Health Management Solutions will reacquire assets that have operated in the Titan division of Certive Solutions, a provider of healthcare revenue cycle management solutions.
Here are four things to know.
1. Certive and Titan Health Management Solutions plan to enter into a binding divestiture and reacquisition settlement agreement by the end of next month, according to a news release.
2. In the release, Certive said it considered various factors before making the decision, but ultimately decided the company's deployment of capital resources needs to be focused on its most accretive division, the Omega division.
3. Van Potter, CEO of Certive, noted: "Often times in business, the best possible outcome is to fully understand and respect the goals and objectives of any relationship. Our goals are to seek continuous improvement, focusing on those activities which will increase shareholder value rapidly. We have an advisory council and an experienced board of directors, each of which have offered a great deal of support and advice with respect to this decision."
He added: "Although Certive would clearly embrace a continuation of the relationship with the Titan principals, it became obvious that splitting our capital resources between the Titan division and the Omega division was incongruent with our need to focus on the highly accretive charge accuracy audit services (lost charge recovery)."
4. Per an agreement executed in 2014, when the assets originally transferred to Certive, the transaction must receive creditor and regulatory approval before it takes effect, according to the release. An independent valuation of the assets being sold is also part of the conditions.