Compuware Wins $1 Billion DMC Outsourcing Contract

小城医生

10-Year Deal Expected to Improve Delivery of Health Care Services to Metropolitan Detroit
FARMINGTON HILLS, Mich. -- August 17, 1999 -- Compuware Corporation (NASDAQ:CPWR) and its health care subsidiary CareTech Solutions, Inc. (CareTech) today announced a 10-year, $1 billion agreement with The Detroit Medical Center (DMC) for the outsourcing of DMC's Information Systems Division (ISD). Compuware and CareTech will hire all 300 DMC ISD employees to support and maintain DMC's data center operations, applications and voice information systems. No DMC employees are expected to lose their employment opportunities as a result of the agreement.
The initial 10-year outsourcing agreement becomes effective immediately and provides for two, two-year extensions. The agreement--among the largest health care outsourcing contracts of its kind--requires Compuware and CareTech to achieve specified economic and cultural objectives set forth by DMC. Economic objectives include a reduction in operating expenses and capital labor costs. Incentive clauses allow Compuware and CareTech to participate in cost efficiencies they achieve. Cultural objectives include a commitment to minority participation as well as to the City of Detroit. In reaching the agreement, DMC, Compuware and CareTech agreed that improving the delivery of health care services to metropolitan Detroit patients is a primary goal and an immediate priority.

"DMC patients in metropolitan Detroit deserve a standard of care that is second to none," said Compuware Chairman and CEO Peter Karmanos, Jr. "Not only will Compuware and CareTech pledge to use information technology to improve DMC's health care delivery system, but we will pledge to make it a best-in-class delivery system--one that others point to as an example." Continuing, Karmanos said: "And we won't do this in a vacuum. We'll consult with DMC's top physicians and health care professionals, determine with them what's best for the local community, and then deliver the right solution. We can't wait to get started."

"We are thrilled to be selected as a DMC IT partner," said Rich Nemesi, CEO of CareTech. "This agreement is unique in the health care industry because it allows DMC and Compuware to share in each other's successes. This agreement also marks a significant milestone for us. CareTech is now the largest provider of health care IT services and solutions in southeast Michigan. On a day like today, we're very proud to be Compuware's health care IT company," said Nemesi.


Compuware Corporation
Compuware productivity solutions help 14,000 of the world's largest corporations more efficiently maintain and enhance their most critical business applications. Providing immediate and measurable return on information technology investments, Compuware products and services improve quality, lower costs and increase the speed at which systems can be developed, implemented and supported. Compuware employs approximately 15,000 information technology professionals worldwide. With trailing 12-month revenues of more than $1.7 billion, Compuware is the world leader in client/server development technology. For more information about Compuware, please contact the corporate offices at 800-521-9353. You may also visit Compuware on the World Wide Web at www.compuware.com.