Transcend, Health Management Sign 5-year Contract

ATLANTA (AP) — Medical transcription services provider Transcend Services Inc. said Friday it secured a five-year single-source contract with hospital operator Health Management Associates Inc.

The companies did not disclose the value of the contract.

Prior to signing the agreement, Transcend had individual contracts with about 45 of Health Management's 56 hospitals. The new agreement expands the existing relationship to include hospitals which are currently using other transcription service providers.

Transcend expects the new agreement to add about 4 cents per share to its annual earnings once the new hospital implementations are complete.

Transcend Services shares rose 90 cents, or 5.5 percent, to $17.29 in midday trading. The stock has traded between $8.16 and $18.53 over the last 52 weeks.

Shares of Naples, Fla.-based Health Management fell 7 cents to $7.40.