SUNRISE MEDICAL'S BIO CLINIC DIVISION SIGNS SOLE SOURCE NATIONAL CONTRACT WITH VENCOR INC.
SUNRISE MEDICAL'S BIO CLINIC DIVISION SIGNS SOLE SOURCE NATIONAL CONTRACT WITH VENCOR INC. TORRANCE, Calif., Nov. 3 /PRNewswire/ -- Sunrise Medical Inc. (NYSE: SMD) announced today that its Bio Clinic division signed its first sole source agreement to supply specialty air bed systems to a national hospital group. Vencor, Inc., the fast growing chain of 19 long term catastrophic care hospitals, has decided after extensive product evaluations to utilize only Bio Clinic air flotation products, including the Orthoderm Convertible and the BioMedx portable air flotation systems. The agreement, which extends for three years beginning Nov. 1, 1992, is anticipated to generate $4-5 million in sale, lease and rental revenues for Bio Clinic over the contract's life in addition to saving Vencor $5-6 million compared to daily rental costs associated with prior vendors. "Until recently, hospitals only utilized air therapy bed systems on a daily rental basis, running up costs; however, Bio Clinic's ability to customize a program with a variety of billing options will now reduce Vencor's expenditures on these products approximately 50 percent," explained Larry Buckelew, president of Bio Clinic Corporation. "This program is a radical departure from the way traditional air therapy beds are rented by hospitals. Bio Clinic's flexibility coupled with its full spectrum of air systems met Vencor's needs and resulted in the award of this sole source contract." Bio Clinic manufactures a complete line of foam and air therapy products for the prevention and treatment of pressure ulcers. The company's air therapy products include both portable pressure relief air flotation systems and complete air flotation beds. Bio Clinic has a nationwide network of 48 rental service centers either company owned or operated by revenue-sharing local partners. Sunrise Medical designs, manufactures and markets internationally medical products used in the rehabilitation and recovery phases of patient care. Sunrise products are designed to meet the special needs of three groups of people: the disabled, the elderly, and the recovering patient. -0- 11/3/92 /CONTACT: Ted N. Tarbet (Financial) or Lisa Riordan (Media ) of Sunrise Medical Inc., 310-328-8018; or Susan Noonan of Noonan/Russo Communications, 212-979-9180, for Sunrise Medical/ (SMD) CO: Sunrise Medial Inc.; Vencor Inc. ST: California IN: HEA SU: CON
EH-KJ -- LA017 -- 2107 11/03/92 13:59 EST
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|Date:||Nov 3, 1992|
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