SCWorx Secures Academic Hospital Deal for Workday Data Services

NEW YORK, NY – December 17, 2025 – SCWorx Corp. (Nasdaq: WORX), a specialized provider of healthcare data management solutions, announced today it has secured a new customer agreement with a Midwest-based academic hospital organization. The deal, which involves a facility of approximately 500 beds, will see SCWorx provide critical data cleansing and enrichment services to support the hospital's Workday enterprise resource planning (ERP) initiatives.

While the financial terms of the agreement were not disclosed, the partnership underscores a growing trend in the healthcare sector: the urgent need for pristine data to power complex administrative and operational systems. The goal of the collaboration is to enhance data consistency and streamline workflows within the hospital.

“This customer engagement reflects ongoing interest in our data management solutions within the academic healthcare community,” said Tim Hannibal, Chief Executive Officer of SCWorx, in the company's official announcement. “We remain focused on supporting our customers’ operational and data-related needs.”

The Growing Pains of Healthcare Data Integration

The agreement arrives as large healthcare organizations increasingly adopt sophisticated, cloud-based ERP platforms like Workday to unify core business functions. These systems promise to integrate disparate departments such as finance, human resources, and supply chain management, offering a single, cohesive view of the enterprise. For academic medical centers, which juggle patient care, research, and education, the appeal of such operational efficiency is immense.

However, the effectiveness of any ERP system is entirely dependent on the quality of the data it ingests. Healthcare institutions are notoriously complex data environments, often grappling with information silos, legacy systems, and inconsistent data formats. When migrating to a platform like Workday, these underlying data integrity issues can surface with significant consequences, leading to inaccurate financial reporting, inefficient supply chain management, and flawed workforce analytics.

This is precisely the problem SCWorx aims to solve. Its services are designed to act as a crucial intermediary, cleaning, standardizing, and enriching a hospital's data before it populates the Workday system. By ensuring the foundational data is accurate and consistent, SCWorx helps healthcare providers avoid the common pitfalls of major IT implementations. The process involves creating a “single source of truth,” particularly for the vast and complex world of medical supplies and contracts, which prevents discrepancies that can ripple across an organization's financial and operational workflows.

SCWorx's Niche in a Competitive Market

For SCWorx, a micro-cap company with a market capitalization of around $3.36 million, this new contract represents a significant strategic win. The company operates in a crowded and diverse healthcare IT market, competing against a wide array of firms that offer everything from broad supply chain platforms to highly specialized AI-driven inventory management tools.

SCWorx has carved out a specific niche as a provider of Software-as-a-Service (SaaS) based “middleware.” Its solutions focus on the often-overlooked but essential task of content management and data normalization. The company’s platform uses a robust translation engine, reportedly built on over 50,000 business rules, to repair and equate supply chain terminology across different systems—such as a hospital's Electronic Health Record (EHR) and its materials management software.

Securing a contract with a 500-bed academic hospital, a highly sought-after client profile known for its complex needs and rigorous procurement processes, serves as powerful validation for SCWorx's specialized approach. It demonstrates the value of focusing on the foundational data layer, a critical component that enables larger, more visible systems like Workday to function as intended. This win bolsters the company's footprint in the academic healthcare sector and reinforces its value proposition in a market clamoring for true interoperability.

Navigating Financial Headwinds with Strategic Wins

The new agreement comes at a pivotal time for SCWorx. According to recent financial filings, the company has faced challenges, reporting a net loss of over $1.3 million for the third quarter of 2025 on revenues of approximately $705,000. Like many small-cap tech firms, it is navigating negative operating cash flow and has been working to maintain compliance with Nasdaq's minimum bid price requirement, having received an extension until April 2026 to do so.

In this context, new customer acquisitions are more than just line items on a balance sheet; they are crucial indicators of market traction and future viability. While the value of this specific deal remains confidential, it signals that SCWorx's solutions continue to resonate with its target market. This engagement, coupled with other recent business such as a renewed three-year agreement with another customer valued at nearly $1.7 million, suggests a pathway toward building a more stable revenue base.

These strategic wins demonstrate the company's ability to secure and retain clients despite its financial pressures. By proving its technology's worth in demanding environments like academic medical centers, SCWorx is building a case for long-term growth and reinforcing investor confidence in its specialized market strategy.

The Broader Trend: Data as the Bedrock of Modern Healthcare

The SCWorx deal is a microcosm of a much larger transformation underway in the global healthcare industry. The volume of healthcare data is projected to grow at an astonishing rate of 36% annually through 2025, driven by digital records, medical imaging, and an explosion of data from wearable devices. Harnessing this data for better patient outcomes and operational efficiency is the defining challenge of modern healthcare.

Yet, persistent interoperability issues—the inability of different systems to communicate effectively—continue to plague the industry, leading to data fragmentation, medical errors, and immense financial waste. The rise of cloud computing and SaaS solutions offers a path forward, providing the scalable and flexible infrastructure needed to manage this data deluge. Furthermore, the increasing integration of artificial intelligence and machine learning, now used by an estimated 86% of U.S. healthcare organizations, promises to automate processes and unlock predictive insights from complex datasets.

However, neither AI nor advanced analytics can function without a clean, reliable, and standardized data foundation. The 'invisible' work of data cleansing, normalization, and enrichment provided by companies like SCWorx is becoming recognized as an indispensable prerequisite for digital transformation. As healthcare continues its shift toward value-based care and data-driven decision-making, ensuring the integrity of the underlying information is no longer optional—it is the essential bedrock upon which the future of efficient and effective healthcare will be built.