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Cardinal Health, ClearCount Medical Solutions Sign Primary Distribution Agreement for RFID-Enabled Sponge Counting, Detection System

Wednesday, April 2, 2008 General News
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DUBLIN, Ohio, April 1 Cardinal Health, a global providerof products and services that improve the safety and productivity of healthcare, today announced an agreement with ClearCount Medical Solutions todistribute the first system cleared by the Food and Drug Administration thatintegrates both counting and detection for sponge management during surgeries.
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Under the terms of the agreement, Cardinal Health will be the primarydistributor for ClearCount's patented SmartSponge(TM) system to hospitals,surgery centers and other health care distributors in the U.S. Cardinal Healthwill offer the SmartSponge(TM) system as part of its Presource(R) surgicalkits and as a stand alone offering.
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The sponges are permanently affixed with a passive radio frequencyidentification (RFID) tag smaller than a dime. The SmartBucket(TM) displayhighlights any count discrepancies. If a discrepancy occurs, a SmartWand(TM)scan is used to identify any sponges remaining in the patient. A SmartMat(TM)under the patient provides the user with notification that a scan isproceeding properly. As the only system to integrate counting and detectionfor the purpose of sponge management, the SmartSponge(TM) system saves time,prevents unnecessary X-rays, reduces the possibility of user error, minimizesdelays in procedures and reduces the hassles associated with countdiscrepancies.

"Patient safety has always been a top priority for hospitals, and they arebecoming even more focused on preventing foreign objects from being leftbehind following surgery," said Steve Inacker, president and general managerof Cardinal Health's Presource kitting business. "This agreement demonstratesour continuing commitment to offer our customers leading technologies to helpimprove safety and productivity in their operating rooms."

The Centers for Medicare and Medicaid Services (CMS) and an increasingnumber of private insurers have indicated that in the near future they will nolonger reimburse for procedures associated with "never" events such as left-behind surgical sponges. Published studies today indicate that one in every1,000 to 1,500 intra-abdominal surgeries results in a sponge left behind in apatient. A retained sponge incident can lead to serious complications,including sepsis, unnecessary X-rays, need for repeat surgeries and evendeath.

"Cardinal Health is a leader in patient safety, and our partnership is yetanother example of their commitment to remain at the forefront of theindustry," said David Palmer, chief executive officer of ClearCount."Technologically advanced hospitals have been seeking a comprehensive solutionto the sponge management challenge, and we have every confidence that oursystem meets their needs."

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is an $87billion, global company serving the health-care industry with products andservices that help hospitals, physician offices and pharmacies reduce costs,improve safety, productivity and profitability, and deliver better care topatients. With a focus on making supply chains more efficient, reducinghospital-acquired infections and breaking the cycle of harmful medicationerrors, Cardinal Health develops market-leading technologies, includingAlaris(R) IV pumps, Pyxis(R) automated dispensing systems, MedMined(TM)electronic infection surveillance service, VIASYS(R) respiratory care productsand the CareFusion(TM) patient identification system. The company alsomanufactures medical and surgical products and is one of the largestdistributors of pharmaceuticals and medical supplies worldwide. Ranked No. 19on the Fortune 500, Cardinal Health employs more than 40,000 people on fivecontinents. More information about the company may be found atwww.cardinalhealth.com.

About ClearCount Medical Solutions

ClearCount Medical Solutions is a medical device company fo
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