dj Orthopedics Establishes Comprehensive Outsourcing Partnership With Creditek MediFinancial for Revenue Cycle Management of OfficeCare and Insurance Sales Channels
SAN DIEGO--(BUSINESS WIRE)--Jan. 16, 2003--dj Orthopedics Inc. (NYSE:DJO), a designer, manufacturer and marketer of products and services for the orthopedic sports medicine market, today announced that as part of its previously announced performance improvement program, it has selected Creditek MediFinancial Inc., (Creditek), a subsidiary of Creditek Corp., to provide comprehensive revenue cycle solutions to dj Orthopedics' OfficeCare® and Insurance sales channels.
The outsourcing agreement with Creditek is expected to further dj Ortho's objectives to establish best practices with respect to insurance billing and collections and to reduce costs.
Creditek, a leader in providing financial process outsourcing, has more than 20 years experience in revenue cycle outsourcing with more than 140 clients nationwide. Creditek will manage all order entry, billing and collections functions for dj Orthopedics'
OfficeCare and Insurance sales channel.
"dj Orthopedics is focused on driving revenue and improving profitability within our OfficeCare and Insurance channels," said Les Cross, president and chief executive officer of dj Orthopedics. "Outsourcing the related back-office administration to a trusted partner focused exclusively on maintaining industry leading capabilities in this area should maximize the efficiency and effectiveness of the related billings and collections process at a reduced cost, and ultimately deliver accelerated cash flow and improved operating results to dj Orthopedics."
"We are very pleased to have the opportunity to partner with a noted industry leader. We have worked with dj Orthopedics to jointly develop a very effective and innovative end-to-end revenue cycle process for the OfficeCare and Insurance sales channels. The solution, which leverages our experience within and outside healthcare, combines new systems, processes and business intelligence that should result in increased revenues, accelerated cash flow and reduced costs for dj Orthopedics. dj Orthopedics' reputation and size, coupled with the magnitude of this undertaking, make this a very significant milestone for Creditek," said Ed Berenblum, EVP and general manager for Creditek's Healthcare Division.
About dj Orthopedics
dj Orthopedics is a global orthopedic sports medicine company specializing in the design, manufacture and marketing of products and services that repair, regenerate and rehabilitate soft tissue and bone, help protect against injury and treat osteoarthritis of the knee. Its broad range of over 600 existing products, many of which are based on proprietary technologies, includes rigid knee braces, soft goods, specialty and other complementary orthopedic products, and its recently introduced line of surgical products. These products provide solutions for patients and orthopedic sports medicine professionals throughout the patient's continuum of care.
About Creditek LLC
Founded in 1982, Creditek is one of the world's largest revenue cycle outsourcing firms. With $10 billion dollars in receivables of Fortune 1000 clients under management, Creditek supports non-core order-to-cash financial functions such as, cash management, deduction/dispute resolution and accounts receivable. Unlike traditional revenue cycle outsourcing companies, Creditek works with organizations to map key business performance indicators such as cash flow, revenue, margins and backlog against financial revenue processes to optimize corporate value-creation opportunities.
Forward Looking Statement
This press release contains or may contain forward-looking statements such as statements regarding the company's future growth and profitability, growth strategy and trends in the industry in which the company operates. Forward-looking statements include references to the company's belief that outsourcing the billing and collections functions of its OfficeCare and Insurance sales channels will accelerate cash flow and improve operating results at a lower cost. These forward-looking statements are based on the company's current expectations and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are the degree of success achieved by Creditek in running the back-office functions of OfficeCare and Insurance channels, the risk that we may not be able to successfully implement our business strategy or our corporate performance improvement program, or that other risk factors could undermine gains made with our strategies and programs, including our ability to successfully develop or license and timely introduce and market new products or product enhancements; our dependence on our orthopedic professionals, agents and distributors for marketing our products; competition in our markets; our limited experience in designing, manufacturing and marketing products for the repair and regeneration segments of the orthopedic sports medicine market; our transition to direct distribution of our products in certain foreign countries; risks associated with our acquisition strategy and international operations; the risk that our quarterly operating results are subject to substantial fluctuations; our high level of indebtedness and the restrictions imposed by the terms of our indebtedness; our ability to generate cash to service our debts; the effects of healthcare reform, managed care and buying groups on prices of our products; the uncertainty of domestic and foreign regulatory clearance and approval of our products; the sensitivity of our business to general economic conditions; uncertainty relating to third party reimbursement; pending litigation; and the other risk factors that are discussed in our Post-Effective Amendment to our Form S-1, filed on Sept. 3, 2002 with the Securities and Exchange Commission.
Company Investor/Media Contact:
DJO Incorporated
Mark Francois
Director of Corporate Communications & Investor Relations
760-734-4766
Mark.Francois[at]djoglobal[dot]com
