--Marks Entry into New County and Ninth State--
HANOVER, Md.--(BUSINESS WIRE)-- Conmed Healthcare Management, Inc. (NYSE Amex: CONM) has signed a new agreement with Ocean County, New Jersey, to provide correctional healthcare services for the detainees at its jail for an initial three-year term, beginning July 1, 2011, with two optional one-year renewals. The first three years of the contract are expected to generate revenues for Conmed of approximately $10 million. If renewed, the fourth year is expected to generate additional annual revenues of approximately $3.5 million and the fifth year, approximately $3.6 million. This new agreement marks the Company's entry into both a new county and state, making New Jersey the ninth state in which Conmed has operations.
The contract includes a full suite of services for the Ocean County Jail, including medical, dental, 24-hour clinical, mental health, administrative staffing, pharmacy, lab and x-ray, management of ER admissions, hospital and other Out-of-facility care, and Electronic Medical Records Implementation. The approximate average daily population of the facility is 550 detainees.
"We are very pleased to announce this new agreement with Ocean County,” commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. “It is significant not only for marking the entry into our ninth state, but also as a win which fully incorporates our clinical umbrella of service offerings. Our strategy with these services is to provide better on-site care, which helps our clients reduce transportation and additional security costs, as well as improves patient outcomes.”
Conmed has provided correctional healthcare services since 1984, beginning in the State of Maryland, and currently serves county and municipal adult and juvenile correctional facilities in nine states, including Arizona, Kansas, Maryland, New Jersey, Oklahoma, Oregon, Tennessee, Virginia and Washington. For more information, visit us at www.conmedinc.com.
Forward Looking Statements
This press release may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements with respect to the Company's plans, objectives, expectations and intentions; and (ii) other statements that are not historical facts including statements which may be identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "projects," "potentially," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control) including, without limitation, the Company's ability to increase revenue and to continue to obtain new contracts, contract renewals and extensions; inflation exceeding the Company’s projection of the inflation rate of cost of services under multi-year contracts; the ability to obtain bonds; decreases in occupancy levels or disturbances at detention centers; malpractice litigation; the ability to utilize third party administrators for out-of-facility care; compliance with laws and government regulations, including those relating to healthcare; investigation and auditing of our contracts by government agencies; competition; termination of contracts due to lack of government appropriations; material adverse changes in economic and industry conditions in the healthcare market; negative publicity regarding the provision of correctional healthcare services; dependence on key personnel and the ability to hire skilled personnel; influence of certain stockholders; increases in healthcare costs; insurance; completion and integration of future acquisitions; public company obligations; limited liability of directors and officers; the Company’s ability to meet the NYSE Amex continued listing standards; and stock price volatility. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2010. Investors and security holders are urged to read this document free of charge on the SEC's web site at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
KEYWORDS: United States North America Maryland New Jersey
INDUSTRY KEYWORDS: Health Hospitals General Health