Conmed signs agreement with City of Roanoke to provide correctional facility health care services

Jun 28 2010

Conmed Healthcare Management, Inc. (NYSE - Amex: CONM), a leading full service provider of correctional facility healthcare services to county detention centers, today announced that it has signed an agreement with the City of Roanoke, VA, for an initial three-year term with options for two one-year extensions which are at the City's option. This contract, with a new customer, is expected to generate approximately $9.1 million in revenues for Conmed throughout the terms of the contract, with the initial annual rate of $1.8 million. Services include medical, dental, mental health and administrative staffing; pharmacy, laboratory and X-ray services; management of hospitalization and other out-of-facility services for the facility's inmates. The jail currently houses approximately 600 inmates. The contract is effective July 1, 2010 and includes potential future price increases based on the Medical Services Consumer Price Index.

“We continue to expand our presence in Virginia and look forward to providing Conmed quality health care services to our newest client, the City of Roanoke”

Also included in the agreement, is for Conmed to deploy and manage a state-of-the-art EMR (Electronic Medical Record) system in the City of Roanoke's jail facility, which is expected to improve quality of care, while also reducing operating expenses. EMR systems greatly simplify the tracking of care of patients with chronic conditions, sick calls, chart notes, health problems, release forms, test results, completion of physician orders and appointments with specialist providers. In addition, the included E-MAR (electronic medication administrator record) system allows for the tracking of medications ordered, pending shipments and pharmacy deliveries. When medications are delivered and logged in, they are automatically listed on the medication pass log for the next scheduled medication pass. Documentation detailing which inmates received medications and when, the type of medication received and from which staff member, as well as which inmates refused medications or were not present not only contributes to the quality of care but also helps mitigate grievances and claims of denial of care.

"We continue to expand our presence in Virginia and look forward to providing Conmed quality health care services to our newest client, the City of Roanoke," stated Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed Healthcare Management. "The City of Roanoke Jail is located approximate 15 miles from the Western Virginia Regional Jail, an institution which we already service and we would envision some operating efficiencies and savings in corporate staff travel as a result of the proximity of these two facilities.. We believe that the success we've had in servicing the Western Virginia Regional Jail during the past 18 months, was a strong factor in the City of Roanoke's selection of us, and we look forward to the new engagement."