Conduit Healthcare Buys Smart

November 7, 2003
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GRAND RAPIDS — Conduit Healthcare Solutions has acquired Smart Association Inc., a developer of membership-based marketing systems for health care providers.

"While Conduit has been focused on systems that effectively collect and track health care information, Smart Association has been perfecting the card-based membership model as a CRM solution and health care marketing tool," said Dale Grogan, CEO of Conduit, who moved his firm from Florida to Grand Rapids last spring.

"We believe our combined strengths will position us well in the marketplace," added Grogan.

Based in Roseville, Calif., Smart Association offers hospitals and other providers customized membership and loyalty programs for patients. Hospital-enrolled members receive discounts at pharmacies and other locations, free health screenings and additional benefits under a Smart program.

Smart Association works with more than 60 hospitals nationwide and has an extensive network of vendors that offer discounts and other benefits to members. The firm has 2.5 million membership cards in circulation.

"Conduit provides an important new resource for technology and financial capital, enabling us to expand at pace with the market," said David Batchelor, CEO of Smart Association.

"Their data management software and technology infrastructure adds significant new value to our range of products currently in the market. We are very enthusiastic about being part of the Conduit team," said Batchelor.

The firms have been working together for the past year under a joint venture agreement to develop an integrated product line.

Smart Association will remain in Roseville and will operate under its current name. No management changes are expected.

The deal gives Conduit a West Coast presence in addition to its headquarters in the Ledyard Building in downtown Grand Rapids and a sales and engineering office in Ocala, Fla.

Conduit is a leading provider of database and smart card solutions to the health care industry. The company's primary product lines include the SmartTracker55, MDCard, SmartEMT, XpressCare and SmartREG.

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