Profitable Bootstrapped Business Model Succeeds Amid Volatile VC/PE Funding Market
INDEPENDENCE, Ohio, May 18, 2023 /PRNewswire/ — Contract Guardian, Inc. (CG), a leading provider of SaaS healthcare contract lifecycle management software, today announced that its revenues and net earnings have tripled over the past four years. The company credits organic growth to a combination of unwavering focus on solving client contract management challenges with hardened entrepreneurial bootstrapping business lessons learned over 34 years. This contrasts with the typical SaaS-company growth model of venture capital, private equity funding, or merger/acquisition that tends to favor additional growth over all else.
The contract management software market is growing rapidly with revenues expected to reach nearly $3.6 billion by the end of 2028 on a compound annual growth rate of 12%, according to Verified Market Research. Growth is driven by a changing regulatory landscape, increasing contract complexity, and the drive by healthcare organizations to reduce costs.
“Large healthcare organizations may have more than 30,000 contracts to manage,” Matt Paterini, PharmD and VP Contract Guardian said, “and many diverse types, including agreements with vendors, payers, employees, leasing firms, affiliates, and contract physicians just to name a few. Different departments tend to operate in silos making contract management an even greater challenge.”
Contract Guardian’s successes are attributed to the software’s ease of use, responsive interface, custom workflows, and automatic notifications, among other features. For example, notifications alone can help organizations realize significant savings by alerting administrators to events such as automatic renewals, which can bind organizations to a contract long after goods or services are required. Contract Guardian is also distinctive in its laser focus on healthcare and the tailored configuration that goes into each customer’s implementation.
More recently, the firm has benefited from the increased involvement of CEO Jim Kandrac in Contract Guardian’s growth strategy. Kandrac started and scaled UCG Technologies over 34 years into a technology services firm spanning thirty-one states, Canada, and the Caribbean. Since the December 2021 sale of UCG Technologies, Kandrac has focused his energies on growing Contract Guardian which he purchased in 2018. Contract Guardian’s Vice President Matt Paterini, whose healthcare background includes a Doctor of Pharmacy degree and extensive health system administration experience is invaluable in leading the day-to-day operations.
Kandrac explains, “Contract Guardian is uniquely positioned in the CLM marketplace to address hospital business issues and pains. The solution was initially developed for a multinational health system 16 years ago and has been continuously enhanced since. The combination of longevity coupled with our team’s healthcare expertise makes for a winning combination for hospital clients.”
The company has also benefited from consolidation in its own market, with one of its leading competitors having recently been acquired by a provider of healthcare governance, risk, and compliance software. The result within those acquired has been “increased pricing, increased system downtime, and lack of support,” Paterini said. Contract Guardian inquiries have increased by over 30% in the past nine months.
With CG renewal rates of better than 96% and customers who range from small rural institutions to multinational giants, Contract Guardian’s SaaS solution and “Train the Trainer” onboarding approach has proven itself in a wide range of use healthcare scenarios.
“We’re distinctive in being solely focused on healthcare,” Paterini said. “You don’t need an IT degree to use our software and each onboarding comes with expertise from client consultants who know hospitals and have collaborated with them for many years.”
The privately-owned company has hospital clients in forty-four states, is profitable, and is in business to solve client problems, issues, and pains having ingrained successful business principles from the history of UCG Technologies. “CG isn’t a software company chasing revenue and customers at the expense of our existing clients,” Paterini said. “I suppose you could say CG’s not an exciting Silicon Valley startup, but with a tripling of business and no requirement for debt or PE/VC dollars, it’s a great place to be.”
About Contract Guardian
Contract Guardian provides an intuitive, cost-effective contract management system that delivers enterprise functionality while mirroring existing processes and terminology. Contract Guardian is expeditiously implemented to bring immediate visibility to business commitments and turn static data into actionable content. Customers see a rapid and dramatic improvement in the quality of customer, employee, and vendor interaction while reducing risk, maintaining compliance, and streamlining operational efficiency. www.contractguardian.com/rx
Media contact:
Francine Ciaccia, VP Marketing
[email protected]
SOURCE Contract Guardian
