National Healthcare Signs Second Long-Term
Logistics Contract
March 26, 1999 7:37 AM
WINNIPEG, Manitoba, March 26 /PRNewswire/ -- National Healthcare
Manufacturing Corporation (Nasdaq: NHMC) announced today that,
further to its announcement of May 21, 1998, its National Healthcare
Logistics (NHCL) subsidiary has signed a long-term contract to establish
and manage its second "Hub & Spoke" distribution system, with Jewish
Hospital HealthCare Services, headquartered in Louisville, Kentucky. The
system will begin with eight member hospitals in and around the greater
Louisville area. The "Hub" is estimated to purchase between $350 and
$500 million worth of products and services over the life of the contract.
The Louisville Hub will begin to deliver products to the hospital system by
July 1999, and additional hospitals will be added as the system
develops. NHCL will receive a base management fee for managing the
"Hub" and developing the "Spokes". In addition, it will also receive a
share of the savings generated from the "Hub & Spoke" system. National
Healthcare will directly benefit from both management fees on products
purchased and the opportunity to market its diverse product lines directly
through this distribution system.
National Healthcare President & CEO Mac Shahsavar stated, "The
signing of our second facility is a clear indication that NHCL is truly on
the leading edge of medical cost containment with its revolutionary 'Hub
& Spoke' distribution system, bringing millions of dollars in savings per
year for any participating hospital group. The 'Hub & Spoke' program will
replace existing distribution systems as it is being recognized and
implemented by the member hospitals."
As previously announced, NHCL signed its first long-term "Hub & Spoke"
distribution agreement with two FL-based hospital systems -- Sarasota
Memorial and Lee Memorial Healthcare System. The Fort Myers,
FL-based LeeSar Regional Service Center, began operations to its
member hospitals in September 1998 and to date has consistently met
its revenue targets.
NHCL, an established leader in the Medical Supply "Hub & Spoke"
concept, conducts feasibility studies prior to establishing a
hospital-owned distribution company (a "Hub"). This "Hub" gives the
participating hospitals a "one-stop shopping point" which removes
substantial costs from the entire supply chain. Spokes are created to
provide additional savings by re-engineering ancillary services such as
waste disposal, laundry, biomedical engineering, Kits & Trays, etc.
NHCL is spearheaded by President Duane Jorgensen who is regarded in
the industry as the "Father of Stockless Distribution" and by CEO Joe
W. Smith, former President of Abco Distributors, a $1 billion/year
medical distribution cooperative.
National Healthcare is being recognized as a market leader committed to
reducing healthcare costs by providing efficient and cost effective
alternatives to conventional products and services to healthcare
providers. National Healthcare owns and operates the world's first and
only automated robotic production facility capable of assembling and
packaging various kits and trays for medical and surgical procedures.
Through its wholly owned subsidiaries, National Healthcare manufactures
and distributes personal care, anti-microbial and cellulose based paper
products such as examination gowns to healthcare and homecare
institutions throughout North America and Europe. Also National
Healthcare Logistics (a 50% subsidiary), is revolutionizing conventional
medical distribution with its state of the art Hub & Spoke logistics
system.
On Behalf of the Board,
Mac J. Shahsavar, P. Eng.
President & CEO
Nasdaq has neither approved nor disapproved the information in this
news release.
CONTACT: Investor Relations of National Healthcare Manufacturing
Corporation, 800-883-8841, or ir@nationalhealthcare.com
07:29 EST |
