SurgLine International, Inc. Launches a Wholly Owned Operating Subsidiary to Pursue Cost Containment Strategies
4/23/2012 8:12:16 AM
WEST PALM BEACH, Fla., April 23, 2012 /PRNewswire/ -- SurgLine International, Inc. (SGLN.PK)
Thomas Toland, CEO of SurgLine International, Inc. ("SGLN") and SurgLine, Inc. ("SurgLine") stated that the Company is pleased to announce that SurgLine has formed SurgLine MDC Holdings, LLC. ("SMDC"), a Delaware Limited Liability Corporation, as a wholly owned subsidiary. SMDC will be forming joint-venture opportunities with spine surgeons and other orthopedic surgeons in markets around the country. The purpose and focus of SMDC will be on achieving cost containment of surgical implants in the operating room for hospitals and acute surgery centers ("ASC").
These Joint Ventures will be structured whereby SMDC will own a minimum of 60% of each operating entity and participating surgeons will own up to 40% of the operating entity.
SurgLine was assisted in developing this joint-venture strategy by one of the most well-known healthcare law firms on the West Coast. The joint venture structure has been designed to comply with all regulatory issues including federal anti-kickback legislation as well as state law(s).
The goal of each of these joint-ventures is to partner with key physician leaders within their communities and to reduce the cost of surgical implants in the operating room, develop quality assurance standards for procedures performed, and to develop and track patient outcomes for the payer community while holding down the rising prices of implants charged to hospitals and ASC's.
Mr. Toland was quoted as saying, "This is not the typical physician owned distributorship ("POD") strategy that has existed in the past, where surgeons and business operators charged as much as they can get away with. Each of our free standing entities will focus on reducing the cost of high priced surgical implant hardware sold to hospitals and surgery centers while working hand-in-hand to deliver more cost effective solutions." Mr. Toland went on to say, "I have met with risk managers and case managers for insurance companies and discussed this strategy with them in detail. The consensus is that the payer community wishes to see real reductions in cost while delivering high quality outcomes for their patients and full disclosure of ownership by any physician who may be an investor."
About SurgLine, Inc.
SurgLine (www.surgline.com) sources and distributes high quality FDA approved medical and surgical products at discount prices, thereby reducing or eliminating the historical brand premium paid by healthcare providers including acute care hospitals, surgery centers, surgical hospital, self-insured employers and insurance companies. SurgLine offers high quality medical and surgical supplies and products at substantial savings utilizing stocking distributors and institutional buyers by sourcing products globally without the historical brand premium and industry markup.
About SurgLine International, Inc.
SurgLine International, Inc. is a holding company that in addition to SurgLine, wholly owns Nuvo Solar Energy, Inc., a development stage company that owns unique patent pending solar and photovoltaic related technology. The Company is also seeking other business opportunities.
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.
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