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Allied Healthcare: Allied Healthcare International Inc. Secures Contract With Waltham Forest Borough Council

^{Published on 2009-07-14 04:47:15, Last Modified on 2009-07-14 04:47:23 - Market Wire}
 

NEW YORK, NY--(Marketwire - July 14, 2009) - Allied Healthcare International Inc. (NASDAQ: [ AHCI ]) (AIM: AHI) ([ http://www.alliedhealthcare.com ]), a leading provider of flexible healthcare staffing services in the United Kingdom, has secured a prestigious three-year contract from the Waltham Forest Borough Council in the United Kingdom. Under the new Waltham Forest contract, Allied has the opportunity to deliver up to three thousand hours of home care services a week (156,000 hours a year), as a sole provider within the "South Patch," one of three geographically defined areas of Waltham Forest Borough. (The hours opportunity is based on the existing care provision under the jurisdiction of the contract, as laid out by the tender specification, and may be subject to change.) This award represents approximately 33% of the overall contracts given to homecare providers by the council. The opening of this new geographic location expands Allied's network to 109 branches across the United Kingdom.

Initially, Allied Healthcare was working with Waltham Forest as a spot provider of domiciliary care, one of thirteen such providers working with the local authority. In 2008, Waltham Forest Local Authority (LA) and Primary Care Trust (PCT), jointly tendered for an outcomes based homecare contract to service the residents of Waltham Forest; this contract was designed to improve the health and well-being of local residents according to objectives outlined in a government white paper titled, "Our Health, Our Care, Our Say."

Allied Healthcare was successful in passing the first stages of the process and was invited to future rounds of negotiation meetings. The Council had geographically divided the borough into four patches, with an initial expectation of appointing one provider to each region; the four appointed providers would then form a partnership with the LA and the PCT to further develop the outcome-based model of care. The Council was so impressed by Allied and two other providers that they chose to geographically reconfigure the borough into three patches. Allied was awarded the South Patch and was the only existing provider to retain supply within the borough.

Following the award of the South Patch, Allied Healthcare, alongside the PCT and LA and two new providers, formed a partnership agreement that would be used at the steering group to shape the service during the life of the contract. Allied had a period of approximately three months to implement the new contract, including the recruitment of new carers and transfer of existing clients and service users. Contract "Go-Live" was set for April 21, 2009, and Allied was able to successfully transfer all of the Service Users under the contract.

"The Bid Team was fundamental to the company's success in securing a contract award with the London Borough Waltham Forest," said Jonathan Carr, Interim Commissioning Support - Adult Social Care at the London Borough of Waltham Forest. "They remained both professional and impressive at all times and contributed significantly to the service specification on which the best and final offers were invited. This commitment was followed up at both the implementation and contract commencement stages. Having this continuity of senior management throughout the process was, and remains, key to the relationships that have been built up and the prospects for the service. Allied's excellent support to the Council and other two partner providers during the initial contract difficulties, must also be noted."

"We are delighted to be working with Waltham Forest," said Sandy Young, Allied Healthcare Chief Executive Officer. "This is a tremendous opportunity for Allied to provide a comprehensive level of service to the residents of the South Patch region and we look forward to continuing to work with the PCT, LA, carers, and service users to shape better outcomes for the residents of Waltham Forest."

For more news and information on Allied Healthcare International Inc., please visit [ http://www.IRGnews.com/coi/AHCI ] where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.

Allied Healthcare International Inc. ([ http://www.alliedhealthcare.com ]) is a leading provider of flexible healthcare staffing services in the United Kingdom. Allied operates a community-based network of 109 branches with the capacity to provide carers (known as home health aides in the U.S.), nurses, and specialized medical personnel to locations covering approximately 90% of the U.K. population. Allied meets the needs of private patients, community care, nursing and care homes, and hospitals.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may be forward-looking statements. These forward-looking statements are based on current expectations and projections about future events. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements include: general economic and market conditions; Allied's ability to continue to recruit and retain flexible healthcare staff; Allied's ability to enter into contracts with local government social services departments, NHS Trusts, hospitals and other healthcare facility clients on terms attractive to Allied; the general level of patient occupancy at our clients' hospitals and healthcare facilities; dependence on the proper functioning of Allied's information systems; the effect of existing or future government regulation of the healthcare industry, and Allied's ability to comply with these regulations; the impact of medical malpractice and other claims asserted against Allied; the effect of regulatory change that may apply to Allied and that may increase costs and reduce revenues and profitability; Allied's ability to use net operating loss carry forwards to offset net income; the effect that fluctuations in foreign currency exchange rates may have on our dollar-denominated results of operations; and the impairment of goodwill, of which Allied has a substantial amount on the balance sheet, may have the effect of decreasing earnings or increasing losses. Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release include those described in Allied's most recently filed SEC documents, such as its most recent annual report on Form 10-K, all quarterly reports on Form 10-Q and any current reports on Form 8-K filed since the date of the last Form 10-K. Allied undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.