A Medical Device Daily

Conmed Healthcare Management (Hanover, Maryland), a provider of correctional facility healthcare services, reported that it has been awarded a three-year medical services agreement with the new Western Virginia Regional Jail (WVRJ; Salem, Virginia).

This new contract, valued at more than $5 million, is expected to generate $1.7 million per year in revenue for Conmed, and also provides for additional per diem rates as the WVRJ inmate population increase. Annual revenue rates during subsequent years are also subject to potential increases and adjustments based on the Medical Services CPI limited to a maximum of 5% per year.

"This contract fits perfectly with our target market expansion strategy, expanding our footprint in Virginia to include the western part of the state," said Dr. Richard Turner, president/CEO of Conmed. "We will now serve significant facilities in each region of Virginia and this will give us the opportunity to showcase our capabilities to other potential clients in the region."

Under the terms of the agreement, which was awarded to Conmed through WVRJ's process of competitive proposal evaluation, Conmed will provide comprehensive medical services that include staffing of nurses, physicians, and clerical personnel, dental services, mental and behavioral health services, ancillary services such as laboratory and diagnostic X-ray, as well as pharmacy services.

In addition, Conmed will provide offsite specialist and hospital services, subject to contractual limits and contingencies as set forth in the contract. As a new facility, the contract will not require evaluation or replacement of any staff. Conmed will begin staffing the facility in February, and expects to be prepared for the arrival of inmates, slated for March.

The WVRJ will have an initial inmate population of about 550 inmates, with the capacity to expand to more than 800 inmates during the term of the contract. The WVRJ was built in order to ease the current overcrowding at the existing jail facilities in the four partnering jurisdictions - the counties of Franklin, Montgomery and Roanoke plus the city of Salem.

Conmed has provided correctional healthcare services since 1984, beginning in the state of Maryland, and currently services detention centers and correctional facilities in 32 counties in six states, including Arizona, Kansas, Maryland, Oregon, Virginia, and Washington. The company's services have expanded to include mental health, pharmacy and out-of-facility healthcare services.

In other agreements/contracts news, Prime Health Services (PHS; Nashville, Tennessee), a national preferred provider organization reported a renewed commitment to servicing the needs of the workers' compensation payer community in the Middle Tennessee market with St. Thomas Health Services (Nashville).

The PHS contract entails working with St. Thomas and its family of hospitals in Middle Tennessee.

Part of this new commitment is a doubling of the savings offered to employers and the payer community when treating workers' compensation patients. This increased savings, coupled with quality care, aids in returning injured workers to their jobs in the timeliest manner.