MedAssets, Inc. (NASDAQ: MDAS) announced today that Broward Health, based in Fort Lauderdale, Florida, has selected MedAssets as their primary group purchasing organization and revenue management solutions provider. The arrangement, effective December 1, 2007, calls for MedAssets to implement group purchasing, supply chain analytics and technology, and tools and services to enhance revenue integrity. Broward Health was formerly a shareholder of Premier.
Broward Health, providing service for more than 50 years, is a nationally recognized system offering world class health care services to its neighbors in South Florida. One of the five largest public health systems in the nation, Broward Health includes Broward General Medical Center, North Broward Medical Center, Imperial Point Medical Center, Coral Springs Medical Center, Chris Evert Children's Hospital, Broward Health Weston and more than 30 facilities of the Community Health Services and Broward Health Physician Group Network. The organization has a supply spend of more than $162 million; annual net operating revenue of approximately $819 million; annual non-operating revenue of approximately $227 million; and over 62,000 total annual patient admissions.
The arrangement gives Broward Health access to MedAssets’ spend management capabilities including a comprehensive group purchasing contract portfolio, supply item file cleansing services, and best of breed supply chain technology that increases transparency and provides actionable information to control supply costs.
Additionally, Broward Health will utilize MedAssets’ revenue management solutions, including chargemaster management and defensible pricing services. These tools will enhance the organization’s ability to adhere to payor codes and regulations as well as continually validate the accuracy of pricing for services.
In order to ensure that supplies utilized in patient care are priced correctly, Broward Health will implement CrossWalk®, the first and only tool that continuously links supply cost data with charge data to ensure charges cover acquisition costs with a reasonable and consistent markup.
“The full MedAssets solution offers an interconnectivity of useful information that increases visibility into operations and finances,” stated Rand Ballard, chief operating officer and chief customer officer, MedAssets, Inc. “This transparency allows us to help providers identify performance gaps and address source issues. We are pleased that the Broward Health chose MedAssets for cash flow and performance improvement solutions.”
MedAssets believes it has a solid balance sheet and considerable financial flexibility to support the development and implementation of revenue cycle and spend management solutions that can deliver financial improvements for our hospital and health system customers. MedAssets had cash and equivalents of approximately $24 million as of September 30, 2007. Following the completion of its initial public offering (IPO) in December 2007, the Company intends to use certain of the IPO net cash proceeds of approximately $220 million to repay a portion of its outstanding indebtedness, to further develop and expand its technology-enabled solutions, and to fund possible acquisitions of complementary businesses, technologies or other assets. The Company’s equity capitalization is approximately $930 million.
MedAssets’ mission is to improve the financial health of healthcare providers so they can continue to provide the highest quality of care in their communities.
About MedAssets
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing integrated spend management and revenue cycle solutions that help control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 125 health systems, including 2,500 hospitals and 30,000 non-acute care healthcare providers. For more information, go to www.medassets.com
About Broward Health
Broward Health is one of the five largest public healthcare systems in the nation. Providing service since 1938, Broward Health is a nonprofit community health system offering a full spectrum of healthcare services. Broward Health encompasses more than 30 healthcare facilities including Broward General Medical Center, North Broward Medical Center, Imperial Point Medical Center, Coral Springs Medical Center, Broward Health Weston and the Chris Evert Children's Hospital at Broward General. Broward Health is a medical safety net for Broward County residents. For more information, visit www.browardhealth.org.