Keep an Eye on AUXILIO
Ken Nagy, CFA
AUXILIO (AUXO) is the only health care exclusive, vendor neutral Managed Print Services (MPS) firm that provides document production management strategies, services and solutions to hospitals throughout the United States. AUXILIO’s continuous workflow improvement solutions enable hospitals and health systems to reduce costs and waste in their operational and clinical functions by managing the process of document production between printing and copying equipment and technology. AUXILIO should see a tail wind in its top and bottom-line growth given the Health Information Technology federal mandates; the fact that hospitals are seeking efficiencies to reduce the cost of health care to the public, and because of increasing reductions in Medicare reimbursements. A recent strategic relationship with Sodexo, a leading provider of integrated facilities management services in North America, has been renewed and should nearly double the sales force.
Investors should keep an eye on contract renewals and new high profile agreements signed as a result of the Sodexo agreement.
On October 12, 2011 AUXILIO announced the renewal of its comprehensive master service agreement (MSA) for its MPS program with Saint Alphonsus Health System (SAHS) through 2016 which is worth approximately $12 million in revenue over the life of the contract. SAHS is a 714-bed organization with four hospitals in the Northwest, including Saint Alphonsus Regional Medical Center (SARMC) – the largest campus and one of AUXILIO’s earliest MPS customers since 2007. Signaling further validation of the value of AUXILIO’s unique MPS program to the health care industry, the MSA results in an early renewal for SARMC. SAHS has over 4,300 employees, a medical staff of more than 950 and is a member of Trinity Health, the fourth-largest Catholic health care system in the country.
In May 2011, AUXILIO secured an expanded marketing alliance with Sodexo Inc., a leading provider of comprehensive service solutions. Originally, the Company had entered into a five year joint marketing agreement with Sodexo in 2008 in which AUXILIO’s document services were provided to Sodexo’s healthcare customer base in the United States.
This original agreement in turn, led directly to the July 2010, five-year contract with Johns Hopkins Health System (JHHS), one of AUXILIO’s most important strategic health care clients and its second contract awarded in 2010 through the Sodexo marketing alliance.
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