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Re: dannol48 post# 14983

Sunday, 02/21/2010 2:32:47 PM

Sunday, February 21, 2010 2:32:47 PM

Post# of 35151
That's the cap & trade this administration/congress has discussed.

Your thoughts here are even more valid, as I had the response the below response from IR. Notice my bolded statement from IR which is now, through your DD, REALLY INTRIGUING!!!!!!!!!

Specifically, my question was as to long term contracts with a company like Stericycle, and whether or not hospitals sign long-term service contracts with any penalties, etc.


I checked with management, and what I’ve learned is as follows.

Most, if not all, agreements favor the hospital and are not very restrictive. MedClean has never run into a situation where they are contractually locked out of a potential customer. If they have an ROI that is compelling, the hospital can adjust. For example, they can allow their current vendor to handle oncology or surgical waste, while MedClean handles red bag waste. There are no minimums in the contracts, so such an arrangement would not violate any agreements. Also, there have never been any “stiff penalties.” So again, to summarize, this has never been an issue for MedClean in any negotiation or agreement. Perhaps that will change in the future, but it hasn’t happened thus far. As you probably know, this industry has historically been dominated by one large player and a number of mom-and-pop players. If MedClean gains traction, that will change, and I’m sure the market leader will have a response. At the end of the day, it will come down to who has the best solution, and moreover, who can provide the best solution (from a convenience, compliance, financial and environmental perspective) to customers.

I hope this helps.


Jeff Stanlis
Partner
Hayden Investor Relations (HIR)
(602) 476-1821
(602) 358-7862 (fax)
jeff@haydenir.com
www.twitter.com/HaydenIR

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