Southfield, Mich. – June 5, 2002 – CareTech Solutions, Inc., the healthcare affiliate of Compuware Corporation, and Detroit Medical Center (DMC), today announced a new comprehensive Information Technology (IT) outsourcing agreement. The new agreement, announced at a formal ceremony on May 6, is retroactive to January 1, 2002.
The ten-year total IT outsourcing agreement, valued at $750 million, expands the scope and term of CareTech Solutions’ relationship with DMC beyond their original agreement and includes DMC’s seven hospitals, multiple outpatient facilities and the Karmanos Cancer Institute. Under the new agreement, CareTech Solutions will provide services and support for DMC’s data center operations, help desk, desktop, network, voice, applications and information systems and provide technical resources for implementation of the medical center’s strategic information technology plan. The agreement also provides for the on-going support of DMC’s minority-owned supplier commitments.
“We made significant progress toward meeting our strategic IT objectives during the first three years of our outsourcing partnership with CareTech Solutions,” said Don Ragan, Ph.D., DMC Senior Vice President and Chief Information Officer. “The partnership has provided measurable value by strengthening our IT capabilities while contributing to the financial recovery of the DMC. We are confident that this expanded relationship provides DMC with the technical tools, talent, and leveraged services we need to continue leading the way in putting technology to work for the delivery of excellent patient care.”
During the first phase of its initial outsourcing partnership with CareTech Solutions, DMC significantly reduced IT spending and increased IT functionality, reduced its IT operating budget, increased charge capture and implemented revenue cycle enhancements. DMC also realized annual savings in vendor/maintenance support costs and reduced costs further through flexible staffing. During the same period, CareTech Solutions expanded DMC’s technical infrastructure, refreshing existing technology, implementing new applications and functionality, and improving access – adding more users, locations and modalities. The efforts resulted in improved patient care and a healthier DMC.
“CareTech Solutions has a proven track record of delivering comprehensive, successful outsourcing solutions,” said Philip Spinelli, CareTech Solutions Vice President of Sales and Marketing. “We provide flexible, customized solutions and pricing designed to meet the complex needs of our healthcare clients. Our approach ensures improved services in the clinical, financial and administrative environments with substantial cost savings. We are pleased to continue providing DMC with the high level of service and satisfaction they have become accustomed to during the first phase of our partnership.”
CareTech Solutions has outsourcing agreements in urban, suburban and rural healthcare markets, from small hospitals to large integrated health systems in academic and non-academic environments. The firm has signed outsourcing contracts valued in excess of $1.2 billion since entering the healthcare IT outsourcing market in 1998.
About CareTech Solutions, Inc.
CareTech Solutions, the leader in healthcare information technology outsourcing, delivers the innovative solutions and services necessary to manage healthcare organizations’ IT investment.
Working with healthcare providers, CareTech Solutions develops and implements information technology business solutions that result in measurable improved IT performance and reduced business costs. For additional information regarding CareTech Solutions, contact the corporate offices in Southfield, Michigan at 248.233.3080 or visit its web site at www.caretechsolutions.com.
About Detroit Medical Center
The largest healthcare provider in Michigan, DMC operates seven hospitals, two nursing centers and more than 100 outpatient facilities throughout southeast Michigan, and is affiliated with Barbara Ann Karmanos Cancer Institute. A nonprofit corporation, established in 1985, the DMC is the largest non-governmental employer in Detroit. The system has more than 2000 licensed beds, 3000 affiliated physicians and serves as the teaching and clinical research site for Wayne State University, the nation’s fourth largest medical school.
Philip J. Spinelli
Sales and Marketing
CareTech Solutions, Inc.