2nd Hub & Spoke System:
NATIONAL HEALTHCARE MANUFACTURING CORP ("NHM-V;NHMCF-Q")
- Second Long Term Medical Logistics System
M. Seyed Torabian, P.Eng., Executive Vice President of National Healthcare Manufacturing Corporation (NHMC) is pleased to announce that its subsidiary National Healthcare Logistics (NHCL) has signed a Letter of Intent to establish and manage its second "Hub & Spoke"
distribution center for an integrated hospital system. This Hub & Spoke center will be owned by the participating hospitals, and based on the current level of purchases will account for over US $900
million ($1.3 billion CDN) in purchasing over the term of the agreement. NHCL will receive fees for establishing and managing this center.
The Hub & Spoke System is a state of the art supply chain management partnership for US and Canadian hospitals. This system is a customized distribution system designed to streamline the needs of healthcare providers into the next century. It replaces conventional distribution methods of Integrated Delivery Networks (IDNs). An IDN is a network of healthcare providers such as hospitals, clinics, surgery centers, etc., which must each be re-supplied several times a day with
hundreds of products. The Hub & Spoke partnership concentrates on strength and efficiencies of each partner, i.e., the custom distribution center and the healthcare provider, to complement and
manage a more enhanced and risk-free healthcare system. In addition, NHCL develops what are called "Spokes", which are other ancillary services that can be centralized as well as cost shared by the healthcare providers in the IDN. The Hub & Spoke centers lower total cost for logistical support by as much as 15-20 percent.
NHCL's President, Duane Jorgensen stated " As more hospitals are learning about significant potential cost savings from our Hub & Spoke Program, they are committing to move away from the current high cost distribution systems to Hub & Spoke."
Mac Shahsavar, President and CEO of National Healthcare said, " We are very pleased about the way the Hub & Spoke Program has been received by the Integrated Hospital Systems. We will continue our pursuit for innovative products and services to further minimize healthcare costs to end users. We also look forward to the opportunity to supply these centers with NHMC's products and services as they become operational."
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. NHMC owns and operates the worlds 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, NHMC 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 NHMC subsidiary), is revolutionizing conventional medical distribution with its state of the art Hub & Spokes logistics system.
NHMC has granted, subject to VSE approval, incentive stock options entitling the holders to purchase up to 370,000 common shares of the company at a price of $3.70 exercisable for a period of five years.
Also NHMC, subject to VSE approval, is repricing 480,000 options issued on April 23,1997 to $3.70.
TEL: (604) 689-8581 Alex P. Tsakumis TEL: 1-800-883-8841 National Healthcare Manufacturing
Corporation Website: nationalhealthcare.com
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