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PRESBYTERIAN MEDICAL CENTER HIRES ARA AND SPECTAGUARD INC. TO PROVIDE NON-MEDICAL SERVICES

 PHILADELPHIA, May 5 /PRNewswire/ -- Presbyterian Medical Center of Philadelphia today announced an agreement under which ARA Services will take on management of four non-medical service areas: food service, environmental services, materials management and engineering and maintenance. In addition, SpectaGuard, Inc. will manage Presbyterian's security department.
 Presbyterian is making the change as a cost-cutting measure, expecting that both companies will be able to introduce economies in operations.
 "There's no doubt that all of us in the health care industry are facing cuts in reimbursement," said Medical Center President I. Donald Snook Jr. "That's bound to be part of the President's national health care reform program."
 "We've made the first move by finding partners who are the best in the industry at what they do. ARA and SpectaGuard will be able to help us operate more efficiently while maintaining quality," he added.
 As a result of ever-tightening regulations and declining levels of reimbursement from Medicare, Medicaid and managed care organizations, hospitals throughout the country are looking for ways to trim their budgets. Early this year, as part of its 1994 budget forecasting, the medical center projected a $6 million deficit. It initiated cost- reduction plans that led to the hiring of the two management firms last month.
 Presbyterian Medical Center gives $8 million to the community each year in free and unreimbursed care. Nearly 70 percent of Presbyterian's payments come from state or federal government, a fact that makes it especially vulnerable to cuts.
 "We have two roles: health care provider and employer," Snook said. "We want to preserve our financial well being in both arenas."
 Presbyterian Medical Center is a 344-bed hospital located in the University City section of Philadelphia. It cares for more than 75,000 patients a year through its inpatient hospital, emergency room and outpatient doctors' offices.
 The Medical Center recently opened the East's first outpatient heart hospital, the home of its Philadelphia Heart Institute. Through one of its sister organizations, Presbyterian owns or manages three community nursing homes.
 SpectaGuard, Inc. is the largest security service company in the region. ARA Services is the world's leading provider of quality diversified services. It is an employee-owned and -managed company with annual revenues approaching $5 billion. In all ARA employs 124,000 people in the United States and eight foreign countries.
 /delval/
 -0- 5/5/93
 /CONTACT: Kathy Ruck of Presbyterian Medical Center, 215-662-9139/


CO: Presbyterian Medical Center of Philadelphia; ARA Services;
 SpectaGuard, Inc. ST: Pennsylvania IN: HEA SU:


MP-LJ -- PH001 -- 4735 05/05/93 09:09 EDT
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Publication:PR Newswire
Date:May 5, 1993
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