Ocean County, Conmed sign new agreement to provide correctional healthcare services for detainees

Conmed Healthcare Management, Inc. (NYSE Amex: CONM) has signed a new agreement with Ocean County, New Jersey, to provide correctional healthcare services for the detainees at its jail for an initial three-year term, beginning July 1, 2011, with two optional one-year renewals. The first three years of the contract are expected to generate revenues for Conmed of approximately $10 million. If renewed, the fourth year is expected to generate additional annual revenues of approximately $3.5 million and the fifth year, approximately $3.6 million. This new agreement marks the Company's entry into both a new county and state, making New Jersey the ninth state in which Conmed has operations.

The contract includes a full suite of services for the Ocean County Jail, including medical, dental, 24-hour clinical, mental health, administrative staffing, pharmacy, lab and x-ray, management of ER admissions, hospital and other Out-of-facility care, and Electronic Medical Records Implementation. The approximate average daily population of the facility is 550 detainees.

"We are very pleased to announce this new agreement with Ocean County," commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. "It is significant not only for marking the entry into our ninth state, but also as a win which fully incorporates our clinical umbrella of service offerings. Our strategy with these services is to provide better on-site care, which helps our clients reduce transportation and additional security costs, as well as improves patient outcomes."