SourceOne Healthcare Technologies Announces Improvements In Financial Performance, Enhancements to Internal Operations And Record Number of National Distribution Agreements
SourceOne was formed through the acquisition of Health Care Products and Diagnostic Imaging (HCP and DI) by Platinum Equity, a global acquisition firm that specializes in mission-critical companies. The company continues to operate as a privately held company with sales exceeding $1 billion.
In less than two years, SourceOne has emerged as the market leader in the distribution of traditional medical imaging supplies, equipment and service, and the most advanced equipment options for PACS, digital radiology for womens health, and an array of specialized and tailored digital solutions for hospitals of all sizes, specialty clinics, physicians and veterinarians. The company is the market leader with a market share approaching 50 percent.
We are very pleased to report that SourceOne Healthcare Technologies has met all of our management objectives for the past year, including improving earnings performance, substantially improving free cash flow and optimizing the efficiency of our operations," said Jerry C. Cirino, president and CEO. At the same time, building on the momentum of our successes in 2003, during the past year we have signed 11 national distribution agreements with some of the worlds most respected medical imaging technology companies."
We expanded our RIS/PACs offering with our partner Merge eFilm," said Cirino. In the last month, we have signed agreements with Imaging Dynamics Company (IDC), CompuMed, Barco and PenRad Technologies. We will be announcing additional unique and mutually beneficial alliances and agreements in the coming months."
Cirino reported highlights of the companys financial performance in 2004. Based on strong sales, earning improved in 2004, and free cash flow was significantly increased by 250 percent. These substantial financial improvements will enable us to continue our plans to broaden our product and service offerings with unique and rewarding relationships with new and existing business partners," added Cirino.
Cirino cited a number developments and changes completed in the past year aimed at improving how the company serves its customers. By optimizing the operations of the companys 40 distribution centers and implementing a new eLogistics program, the companys fill rate is 98 percent, an achievement that has virtually eliminated backorders.
To broaden the companys service for smaller customers, SourceOnes reorganized its telemarketing group -- CustomerExpressSM -- a team that now responds to more than 3,500 customer orders per day. The companys highly- trained Field Service Engineers (FSEs) performed a record 375,000 service transactions during the past 12 months.
SourceOne continued its focus on broadening its digital imaging offering. Most recently, the company recently signed a contract with IDC, giving SourceOne nationwide distribution rights to an innovative, efficient and affordable line of direct digital radiography (DR) solutions for hospitals and orthopedic centers.
Expanding on the companys commitment to womens health, SourceOne signed a national distribution agreement with PenRad, to offer cutting edge Advanced Mammography Information Systems that are designed to decrease workload, increase efficiency, improve accuracy and provide immediate turnaround time. This is complemented by the recent signing of a strategic national distribution agreement with Barco, the global leader in high-performance medical-imaging display technology. SourceOne now offers Barcos full line of medical display technology for X-ray, digital radiography, PACS, digital mammography, ultrasound and magnetic resonance imaging.
SourceOne will market and distribute CompuMeds innovative DICOM OsteoGram® software that may be added to existing computed radiography (CR) and digital radiography (DR) systems enabling them to perform radiographic supplies, medical supplies, imaging equipment, radiologic services, radiologic services, PACS, RIS/PACS, DR, CR , e-Logistics, healthcare, diagnostic imaging, radiology equipment, CR systems, DR systems, medical display monitors, mamography, womens's health, medical film, radiographic supplies, supply chain management, screening for early detection and treatment of osteoporosis. This breakthrough second-generation technology will give SourceOnes customers the ability to use a simple hand x-ray to precisely determine bone mineral density (BMD) as an indicator of osteoporosis and future fracture risk. The Automated OsteoGram® software analysis program instantly produces a BMD report comparable to tests performed on the expensive, dedicated BMD testing equipment generally found in hospitals and specialty practices.
Looking to 2005 and beyond, we will continue to enhance our offering of digital technology," said Cirino. Upcoming developments will include new distribution agreements, possible acquisitions, and renewals with many of our long-standing Group Purchasing Organizations (GPOs). This, combined with a management ethos of constantly challenging ourselves to better serve customers will be a winning combination by all measures."
About SourceOne Healthcare Technologies
Headquartered in Mentor, Ohio, SourceOne Healthcare Technologies is a leading provider of imaging equipment, radiographic supplies and services tailored to healthcare facilities including those transitioning to a digital imaging environment. Its broad equipment and consumables lines, as well as nationwide manufacturing, e-Logistics, sales professionals and field service engineers enable customers to turn to SourceOne as the best-in-class, single source for effective supply chain and medical imaging management. SourceOne is a privately held company of Platinum Equity, a global acquisitions firm specializing in the strategic operation of mission-critical companies. For additional information about SourceOne, visit www.sourceonehealth.com.
Contact Information:
Todd Appleman
323-850-7664
tappleman@the-appleman-group.com
THE APPLEMAN GROUP
Author Information
Todd Appleman
THE APPLEMAN GROUP
