Auxilio Rolls Along, Signs Another
By Ken Nagy, CFA
On January 24, 2013,
Auxilio, Inc. (OTC Markets:
AUXO
)
, the Mission Viejo, California based Managed Print
Services (MPS) company for the health care industry, reported
that it signed a five year, $4.5 million MPS contract with Citrus
Valley Health Partners, located our of Covina, California.
Citrus Valley Health Partners serves over one million people in
the San Gabriel Valley in Southern California.
The health care system has approximately 3,000 employees and
nearly 1,000 physicians located in three hospital campuses,
including Citrus Valley Medical Center-Queen of the Valley Campus
in West Covina, Foothill Presbyterian Hospital in Glendora, and
Citrus Valley Medical Center-Inter-Community Campus in Covina.
The contract adds to Auxilio's national portfolio and continues
its momentum into 2013.
Over a 12 month period, Auxilio will have implemented its print
services program in over 30 new hospitals and hundreds of their
affiliated entities; grown its hospital portfolio by over 50% and
now manages the process and production of over 1.5 billion
documents per year for more than 250,000 caregivers, physicians
and health care employees across the country.
Likewise, Auxilio completed the implementation of its MPS program
in 15 new customer hospitals during the third quarter of fiscal
2012.
Auxilio operates on-site in 22 states throughout the nation
representing more than 26,000 patient beds in over 80 hospitals.
Moreover, in an effort to scale its business to meet the evolving
U.S. healthcare industry acceleration, Auxilio has recently made
several key operational enhancements including scaling sales and
business development efforts.
The Company remains focused on building awareness in the
healthcare industry to add new accounts with large healthcare
systems, expanding its geographic presence domestically, renewing
existing accounts for three to five year terms, and moving all
new accounts toward profitability.
Along the same lines the Company's MPS offerings continue to be
in high demand as health care systems and hospitals increasingly
search for solutions to reduce costs and enhance efficiencies.
With its exclusive focus on the healthcare industry, the
Healthcare Information Technology (HITECH) portion of the
American Recovery and Reinvestment Act of 2009 (ARRA) offers
Auxilio a unique growth opportunity.
The HITECH portion of the bill includes nearly $20 billion of
reimbursement incentives to those providers achieving "Meaningful
Use" for the implementation of an Electronic Medical Record
System.
Auxilio's unshared position as the only managed print service
provider in the U.S. dedicated exclusively to the health care
industry and hospitals allows it to tap into HITECH incentives
indirectly by bringing a unique exposure and knowledge in
assisting customers in the preparation of electronic records
management and the complex compliance requirements of the
'meaningful use' criteria federal mandates.
As Hospitals and IT departments are pressured to further reduce
cost and enhance efficiencies as well as act quickly on cost
cutting measures to comply with these EHR (Electronic Health
Records) mandates, it leads to shorter sales cycles for Auxilio.
Similarly, the continued trend of high levels of consolidation
within the healthcare industry should work to the Company's
advantage.
As healthcare systems consolidate and become larger, the need to
streamline cost and increase efficiencies also grows, presenting
a strong demand driver for Auxilio's MPS solutions.
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