Conmed Healthcare signs full-service agreement with City of Virginia Beach

Sep 28 2010

Conmed Healthcare Management, Inc. (NYSE Amex:CONM), a leading full service provider of correctional facility healthcare services to county and municipal detention centers, today announced that it has signed a full-service agreement with the City of Virginia Beach, Virginia, for an initial three-year term with options for two one-year extensions at the City's option. This contract with a new customer is expected to generate a base level of approximately $17.5 million in revenues for Conmed throughout the term of the contract, with the initial annual rate of approximately $3.5 million. The contract includes a full suite of services for the facility's inmates including medical, dental, mental health and administrative staffing; pharmacy, laboratory and X-ray services; management of emergency room, hospitalization and other out-of-facility services. Additionally, a full electronic health record system will be implemented. Price increases are based on the Medical Services Consumer Price Index. The total inmate population of the City of Virginia Beach is approximately 1,350. The contract is effective October 1, 2010.

“The new contract reflects our commitment to providing the quality and standard of care that exceeds expectations with our clients and allows them to achieve operational and budgetary efficiencies. We believe that our reputation for delivering efficient quality care resonated with the City during their contract awards process.”

"We continue to be gratified by our expanded presence in Virginia and look forward to providing quality medical and mental health care services to our newest client, the City of Virginia Beach, which will be the sixth jurisdiction that we are serving in the state," commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. "The new contract reflects our commitment to providing the quality and standard of care that exceeds expectations with our clients and allows them to achieve operational and budgetary efficiencies. We believe that our reputation for delivering efficient quality care resonated with the City during their contract awards process."