Southfield, Mich. – June 5, 2002 – CareTech Solutions, Inc., the healthcare affiliate of Compuware Corporation, and Oakwood Healthcare, Inc. (Oakwood), today announced a new comprehensive outsourcing agreement for information technology (IT) services effective June 1, 2002.
The ten-year agreement, valued at approximately $250 million, expands the scope and term of CareTech Solutions’ relationship with Oakwood from a five-year service agreement to a total IT outsourcing partnership. Under the new agreement, CareTech Solutions will provide comprehensive outsourcing services and support including 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.
Jerry Fitzgerald, Oakwood President and Chief Executive Officer remarked, “Our IT strategies are key to Oakwood continuing its successful record of providing excellent patient care, system growth and cost containment. CareTech Solutions has proven to be a true strategic partner who clearly understands and performs to Oakwood’s business and technology objectives. Oakwood’s decision to further develop the relationship with CareTech Solutions speaks to our satisfaction with the exceptional value this partnership has delivered.”
The agreement with Oakwood Healthcare marks the second contract renewal for CareTech Solutions in 2002. The corporation recently announced a new 10-year total IT outsourcing agreement with the Detroit Medical Center worth $750 million.
“These contract renewals highlight CareTech Solutions’ commitment to maintaining successful long-term partnerships with our outsourcing clients,” said Philip Spinelli, CareTech Solutions Vice President of Sales and Marketing. “Our proven track record of delivering flexible, customized solutions and pricing that best meet the complex needs and business objectives of our clients helps ensure the success of these relationships.”
CareTech Solutions has outsourcing agreements in urban, suburban and rural healthcare markets, from small hospitals to large integrated health systems in both 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.
“CareTech Solutions is committed to implementing IT business solutions for Oakwood that improve the return on investment in information technology,” said Jim Giordano, CareTech Solutions Chief Financial Officer. “We are confident that Oakwood will continue to benefit from reduced IT costs, improved system performance, additional capabilities and leveraged services throughout the life of the agreement with CareTech Solutions.”
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 Oakwood Healthcare, Inc.
Oakwood Healthcare System is a comprehensive regional network of hospitals, healthcare centers, skilled nursing centers and related healthcare facilities. Oakwood has a medical staff of more than 1,200 doctors, and provides service to more than 1.2 million people in 35 southeastern Michigan communities. Oakwood’s specialty services include women’s and children’s health (including high-risk obstetrics and neonatal care), geriatrics, emergency care, cancer care and cardiology. Oakwood was named one of the top 100 cardiology programs in the nation for three consecutive years. Oakwood is affiliated with the schools of medicine at Wayne State University and the University of Michigan and is a member of the University of Michigan Cancer Center Network. With more than 9,000 associates, Oakwood is the second-largest employer in suburban Wayne County. For more information about Oakwood Hospital and Medical Center, call 800-543-WELL.
Philip J. Spinelli
Sales and Marketing
CareTech Solutions, Inc.