InfuSystem Holdings, a healthcare service provider that facilitates outpatient care for durable medical equipment manufacturers and health care providers, entered into a three-year master service agreement with a global healthcare technology and diagnostic company.
As part of the master service agreement, InfuSystem will be providing its biomedical services, which include annual preventative maintenance and repair solutions, to a majority of the fleet of infusion pumps at hospitals and other medical facilities under contract with this tier one global healthcare company.
Service will be conducted on-site at the acute care facility or off-site at one of InfuSystem’s seven service centers. This global healthcare technology and diagnostic company’s preferred customers’ infusion pump fleet consists of more than 300,000 pumps located in 1,200 medical facilities, including 800 hospital systems in the U.S. and Canada.
“I am extremely pleased the tier one global healthcare company has entrusted InfuSystem to be their preferred national service provider. We will deliver our ‘white glove’ biomedical services for their infusion pump fleet throughout North America,” says Richard DiIorio, CEO of InfuSystem. “This master service agreement could potentially lead to additional opportunities to serve this customer to provide other products and services we offer under our DME Services segment. The wide-ranging expertise and capabilities of our DME platform, along with our proven track record of industry-leading service, and our national network of service centers, were important factors in their decision to partner with InfuSystem.”
This preferred national service agreement is estimated to generate approximately $10 to $12 million, after an initial ramp-up period, in annual revenue under InfuSystem’s DME service platform.
“This acute care service opportunity is the direct result of effectively integrating our biomedical services acquisitions and creating a highly effective operating unit to service tier one clients in order to drive growth and significantly expand market share,” says Dilorio. “Our certified biomedical service teams will be deployed throughout North America to commence onboarding of the global healthcare company’s infusion fleet, and to conduct service and repairs on-site or at one of our national service centers. I believe this preferred national service agreement lays the foundation for long-term growth of our DME business and even greater expansion into the acute care space.”