Largest Contract in Company History Could be a Stepping Stone!
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.
On January 12th announced a five-year contract worth over $40 million with Catholic Health East (CHE) to implement its MPS strategy in 19 hospitals, three long-term care facilities and a multitude of clinical and administrative entities in 11 states from Maine to Florida. CHE is based in Newtown Square, Pa., and is a multi-institutional Catholic health care network of 18 regional health corporations located along the eastern seaboard of the U.S. and employs approximately 54,000 full-time employees.
The contract is significant for two reasons. First it’s the largest in company history (done without the partnership of Sodexo) and second it could open roads into Catholic hospitals across the U.S. CHE is the 5th largest Catholic hospital in the United States.
Looking at Thompson Reuters annual list of the 100 Top Hospitals in the U.S., catholic hospitals take up 29 spots in the top 100. The list is decided by quality not just size. To get an idea of the worldwide size of the catholic church’s reach, according to the Catholic News Agency, The Catholic Church manages 26 percent of health care facilities in the world. The Church has 117,000 health care facilities, including hospitals, clinics, and orphanages. There are more than 600 Catholic health care institutions in the United States.
The hospitals represent health ministries that originated with communities of religious sisters throughout the history of health care in America. Among them: Sisters of St. Francis, Bon Secours, Sisters of Mercy, Daughters of Charity, Sisters of Charity, Sisters of Providence, Sisters of St. Joseph and others. It is estimated one in six Americans receives health care in a Catholic health institution each year, according to the Catholic Health Association.
*Source Catholic News Source
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