Claimsnet Reports Rise in Earnings, TransactionsClaimsnet.com, a provider of Internet-based business-to-business solutions for the healthcare industry, processed a record 1.572 million transactions during the second quarter, the company said yesterday. That represents a 32 percent increase from the 1.194 million transactions processed in second quarter 2000.
The increase was driven primarily by a 26 percent increase in claims and a 128 percent increase in patient statements, according to Claimsnet. The Dallas company said that while claims processing is beginning to contribute more substantially to the activity on its site, patient statement processing accounts more substantially for both volume and revenue. Claimsnet reported that revenue from transactions rose 28 percent to $171,000, compared with $134,000 in second quarter 2000.
The company released its transaction numbers as it announced its second-quarter results. Total revenue for second quarter 2001 was $263,000, compared with $330,000 in second quarter 2000. The 2000 revenue included $131,000 in license revenue related to the original agreement with McKesson Corp., for which there was no corresponding revenue in the current quarter. Revenue for second quarter 2001 increased by 32 percent from second-quarter 2000 revenue from all sources other than McKesson license revenue.
Under terms of the new agreement, McKesson purchased 1.5 million shares of Claimsnet.com common stock and now has a 14.5 percent ownership stake in Claimsnet. In addition to the stock purchase, McKesson made a one-time cash payment of $200,000 to Claimsnet and satisfied its former obligation to pay ongoing fixed license and service fees.
At the end of second quarter 2001, Claimsnet had 440 accounts, a 16 percent increase from 378 accounts at the end of the year-ago quarter. The company said the impact of that increase was further enhanced by a 6 percent increase in both the average number of physicians per account and the average number of transactions per physician. Combined, this produced a 13 percent increase in the average number of transactions per account to 3,572, compared with 3,158 in second quarter 2000.
Claimsnet's net loss for the quarter was reduced by 85 percent to $1.4 million, or 14 cents per share, compared with a net loss of $9.3 million, or $1.20 per share, last year.
Total transactions for the six months that ended June 30 exceeded 3 million, representing a 23 percent increase over the first six months of fiscal 2000. The company said this increase was driven by an 18 percent increase in claims processed and a 137 percent increase in patient statements. Total revenue for the first six months of fiscal 2001 was $795,000, a 30 percent increase from $610,000 in second quarter 2000. Revenue from transactions for the first six months of the year increased 31 percent to $313,000, compared with $239,000 in the first six months of fiscal 2000.