The Transcend article has to be accurate as it is part of their SEC filing. sm

• Small town Missouri girl very happy at Transcend - Ronda Lingerfelt
  • Also a Transcender... LOVE it! - myfingersfelloff
  • Please answer this. How do you explain in the articles posted BY Transcend then - Hard to believe
    • Hard to believe . . . - Former Transcender, glad I left . . .
    • The Transcend article has to be accurate as it is part of their SEC filing. sm - HMMMM
  • THANK YOU, Ronda. - CrankyBeach
    • ESLs, night shifts, and jobs - oh my!! - philosophical MDIer
    • I always knew CB was untrue to MT - With or Without me
      • Keep the personal remarks to yourself. - CrankyBeach
        • Oh bust.... - LOL
        • Sorry, but personal or not - you exercised poor judgment
  • How do you... - Small Town Missouri Girl
  • offshore overseas.... not outsource .... correct term is offshore. - n/m
  • I'm also a Transcender - love it here. - didn't know you were in missouri too!!
  • You cover for each other in times of crisis? sm - tj
    • I suspect you're NOT out of the loop - Just the opposite
      • Thanks for seeing my point, but now I just feel so lonely, lol... sm - tj
        • Hope you caught my drift.... - Just the opposite
  • way to go - don'tworrybehappy
    • I'm having a hard time believing the MDI-FL transition - MDI IC
      • Well, thank you! - MDIerNoMore
        • No suits here.... - CrankyBeach
          • Nah, never doubted YOUR posts for a second, CB - MDIerNoMore
  • small town dweller too, but my thinking has - evolved in recent years.
  • Wow! You sure seem to know... - MT

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The Company may not be able to recruit and hire a sufficient number of new or replacement medical language specialists to sustain or grow the current level of revenue.

The Company cannot provide transcription services to customers within contracted delivery standards without an adequate supply of qualified medical language specialists. Medical language specialists are in short supply. The Company relies upon in-house recruiters to hire a sufficient number of qualified medical language specialists to meet current and projected needs. The Company attempts to attract and retain medical language specialists by offering competitive pay and benefits and the opportunity to work from home utilizing the Company’s Internet-based system. The Company is transitioning a significant portion of the business from transcribing (typing) to editing, which allows the Company to increase the productivity of existing personnel and attract a new supply of medical language specialists. Nonetheless, there can be no assurance that the Company will be able to hire and retain a sufficient number of medical language specialists to meet demand. Failure to do so could have a material adverse effect on the ability to undertake additional business or to complete projects in a timely manner, which could adversely affect operating results and financial condition.

The Company’s reliance on key third-party software could affect the ability to operate competitively.

Portions of the BeyondTXT technology were provided to us by Multimodal Technologies, Inc. under an agreement originally entered into on September 28, 2004. The original agreement was replaced by a new agreement, commencing September 1, 2006, that provides for a one-year, non-exclusive license that is renewable for up to four successive one-year periods at the Company’s option (the last such option period ending August 31,2011 and additional successive one-year periods if mutually agreed to by both parties. The inability to maintain the relationship with Multimodal Technologies, Inc. or find a suitable replacement for the technology at favorable prices or at all would adversely affect the ability to operate competitively and to meet the workload demands of the existing customer base.

Transcend’s operations depend on access to reliable voice and data networks and dictation capture systems. Any failure of more than one of these networks or systems, even for a short time, could harm the business.

The majority of the Company’s customers depend on the BeyondTXT platform, data networks and dictation capture systems being able to process voice and data files 24 hours per day, seven days per week. If voice and data networks or dictation capture systems are unavailable, the ability to transcribe documents for customers is severely limited. The Company is heavily dependent on third parties such as telecommunications providers and dictation system vendors. Although there is redundancy across these providers and systems, any failure of more than one of these networks or systems, even for a short time, could delay the ability to provide transcription services to customers. Because the timely delivery of transcription services is vital to customers, any such delay could harm the business.

The Company operates in a highly competitive market and can make no assurance that it will be able to compete successfully against current or future competitors.

The medical transcription services market is highly fragmented and competitive, with several thousand local, regional and national companies competing in the United States alone. In addition, the medical transcription industry in the United States has experienced competition from overseas competitors. While the Company attempts to compete on the basis of fast, predictable turnaround times and consistently high accuracy and document quality, there can be no assurance that the Company will be able to compete effectively, if at all, against competitors. These competitive forces could result in loss of market share, lower margins and/or increased technology investments.

The Company operates in an environment with competitive pricing pressure and can make no assurance that it will be able to compete successfully against current or future competitors on the basis of price.

Some competitors have lower cost structures than the Company does, particularly if they are small firms or operate primarily offshore. Other competitors may be willing to accept less profitable business in order to grow revenue. It is common for competitors to offer lower prices than Transcend’s. The Company attempts to position itself in the industry as a high quality provider at a mid-level price point. Accordingly, the Company may lose business on the basis of price or be forced to lower prices to win new business. There can be no assurance that the Company will be able to compete effectively, if at all, against competitors on the basis of price. Competitive pricing pressure could result in loss of market share and lower margins.

The use of offshore medical dictation subcontracting firms exposes the Company to operational and financial risks not inherent in the United States.

As of December 31, 2008, approximately 19% of the Company’s transcription volume was subcontracted to offshore providers. As the Company increases reliance on these offshore providers, there will be increasing exposure to operational and financial risks not inherent in its United States operations. These risks include political, economic and social instability, unexpected changes in the regulatory environment, currency fluctuations (although our contracts are in U.S. dollars) and the possibility that offshore providers will be acquired by a competitor and discontinue their relationship with the Company.

REVENUE

 Year Ended December 31, 2008 Compared to Year Ended December 31, 2007

Revenue increased $6.2 million, or 15%, to $48.7 million in 2008, compared to revenue of $42.5 million in 2007. The $6.2 million increase in revenue consisted of increased revenue from existing customers of $4.8 million, revenue from new customers of $3.0 million, partially offset by decreases in revenue of $1.6 million from customers who cancelled their contracts in 2008.

Direct costs increased $2.1 million, or 7%, to $30.9 million in 2008, compared to $28.8 million in 2007. Direct costs include costs attributable to compensation for transcriptionists, recruiting, management, customer service, technical support for operations, fees paid for speech recognition processing, telephone expenses and implementation of transcription services. Transcription compensation is a variable cost based on lines transcribed or edited multiplied by specified per-line pay rates that vary by individual as well as type of work. Speech recognition processing is a variable cost based on the minutes of dictation processed. All other direct costs referred to above are semi-variable production infrastructure costs that periodically change in anticipation of or in response to the overall level of production activity.

As a percentage of revenue, direct costs decreased to 63% in 2008 from 68% in 2007. The decrease in costs as a percentage of revenue is due primarily to cost savings that resulted from an increase in the use of the Company’s speech recognition-enabled BeyondTXT platform, growth of semi-variable direct costs of operations at a slower rate than the rate of revenue growth and the use of increased offshore transcription resources. Approximately 19% of the Company’s transcription work was performed offshore during 2008, compared to 14% during 2007. During 2008, approximately 30% of the Company’s volume was edited using speech recognition technology on the BeyondTXT platform, compared to 24% during 2007. Gross profit increased $4.1 million, or 31%, to $17.8 million in 2008, compared to $13.7 million in 2007. Gross profit as a percentage of revenue increased to 37% in 2008 compared to 32% in 2007. 

DCOA Promissory Note

On April 6, 2005, the Company fulfilled the prerequisites for receiving the proceeds under a Promissory Note dated March 1, 2005 payable to the Development Corporation of Abilene, Inc. (“DCOA”) in the principal amount of $1.0 million (the “Promissory Note”). Transcend received $850,000 under the Promissory Note on April 7, 2005 and was pre-funded $150,000 under the Promissory Note on March 31, 2005. The Promissory Note was initially secured by a $150,000 letter of credit from a bank and certain furniture and equipment. The letter of credit was released December 7, 2005 and the remaining collateral shall be released as the principal balance of the Promissory Note is reduced.

The Promissory Note relates to the Agreement for Financial Assistance by and between DCOA and Transcend effective as of March 1, 2005 that was approved by DCOA on March 4, 2005 and amended on June 6, 2006 (collectively, the “Agreement”). Under the terms of the Agreement, DCOA agreed to provide up to $2 million of interest-free, secured loans to Transcend (the “Loans”). In return, Transcend agreed to recruit, hire and train up to 208 medical transcription professionals, the majority of whom shall be recruited from Abilene or the area surrounding Abilene, as defined in the Agreement. DCOA offered the Loans to Transcend in two increments of $1 million each in return for Transcend recruiting, hiring and training up to 104 medical transcription professionals for each Loan. The Promissory Note is the first such Loan. During 2007, the Company was informed by the DCOA that the second $1 million loan is no longer available.

Transcend and DCOA intend for the Promissory Note to be paid by Transcend using quarterly training credits and annual job creation/retention incentive credits provided to Transcend by DCOA as defined in the Agreement. Principal reductions of the Promissory Note were effected through quarterly training credits and annual earned job creation incentive credits, not cash, as follows: (1) $25,000 per month for the first six months of the Agreement provided that 15 employees were hired by Transcend during that period; (2) a quarterly training credit equal to 50% of the total wages paid to newly hired Medical Language Specialists (“MLS”) during their probationary period (not to exceed $4,000 per MLS); and (3) an annual job creation incentive credit of between 10% and 12% of compensation for the year for each full time equivalent employee (FTE), with cumulative per FTE credits capped at 30% to 35% of the FTE’s annual compensation (depending on the FTE’s compensation band) for FTEs hired on or before March 31, 2010 including compensation paid through March 31, 2012.

Transcend had earned credits of $23,000, $77,000, and $99,000 for the years ended December 31, 2008, 2007 and 2006. These credits are reported as reductions of direct operating costs. On December 1, 2008,

Transcend entered into a new agreement with the DCOA whereby the DCOA reduced the loan principal by $101,000 in exchange for agreement by Transcend to retire the debt three years earlier than agreed and the cancellation of potential future credits earned through training and job creation. This reduction was booked to direct costs as were previous job credits earned. Transcend will pay DCOA six quarterly payments of $92,000 commencing January 1, 2009 with the final payment due April 1, 2010 to satisfy the remaining principal amount. The note will continue to carry a zero interest rate. The principal balance on the Promissory Note is $550,000 at December 31, 2008.

 RETIREMENT PLAN

The Company maintains a 401(k) retirement plan that covers all eligible employees. Employees are eligible to contribute amounts to the plan subject to certain minimum and maximum limitations. The Company matches employee contributions on a discretionary basis as determined by the Company’s Board of Directors. The Company made $156,000 and $134,000 of matching cash contributions in 2008 and 2007, respectively, and no matching contributions in 2006.

Going forward, the Company intends to continue matching 50% of the first 4% of employee’s compensation contributed to the plan, subject to the financial performance of the Company.

MAJOR CUSTOMERS

Revenue attributable to one contract with Providence Health System—Washington for four hospitals totaled $3,728,000 $3,269,000 and $3,017,000 or 7.7 %, 7.7% and 9.2% of total revenue for 2008, 2007 and 2006, respectively. In addition, the Company had revenue under separate agreements with approximately 44 customers who are owned by Health Management Associates, Inc., a single healthcare enterprise. Revenue attributable to Health Management Associates, Inc. comprised $10,267,000 or 21.1%, $9,611,000 or 22.7%, and $8,473,000 or 25.9% of the Company’s total revenue for 2008, 2007 and 2006 respectively.

On January 1, 2009, the Company purchased certain assets of DeVenture Global Partners, Inc. and acquired approximately 30 customers with this transaction.

Can any current Transcend employees please tell me how their part-time status works?  Minimum requirements/hours? 

Thanks so much.

taxes using personal legal name and Social Security number, and not a corporation name using an EIN, you are not a business. 

Assess your work duties, instructions, schedule, quota, equipment, programs or instructions provided by MTSO to carry out work during your time there.  If  you meet employee criteria (and most do), you qualify to collect retroactive benefits from the first day you were given explicit instructions, training, equipment, strict schedule.  Legally, you are considered an employee from that ponit on and you are due cash reimbursement for outside medical insurance paid out-of-pocket, for unpaid employer Social Security contributions, for vacation time not paid. 

has damaged their reputation FAR more than whatever was said in the post that prompted it.

Had they just left things as they were, it had already blown over.  Now, they have actually seen to it that anyone who wants to work for a company with any decency will stay far, far away.

DISCLAIMER:  ALL CONTENT IN THIS POST IS MY OPINION ONLY, I AM AN MT AND HAVE NOTHING YOU CAN TAKE FROM ME. 

for this company and yes, they did in fact then go back and look at one other person that I am aware of and created, unfortunately, a backlash for that poor person, as she then had to refile her taxes.  The company was hit with huge back taxes, interest and penalties.  I worked for a small MTSO.

Have one doctor that I had problems with and only typed for him foer three months.  He was unethical but then he felt that I should not charge for anything that was not actually typed, i.e. if he did a normal exam, etc.  So we had a falling out and he owes me $200 and he has threatened fraud against me, etc.  But I told him he could not bully me and that we would leg small claims court settle the matter.  Am giving him a three day notices sent in a signed reeturn receipt and if he does not pay I will go to court.   So if you are an IC that is your course of action.  I work directly for the doctor, if you are with a service and you know the docs that you are typing for, can tell your MTSO you are informing them that they do not pay their IC's and you will not longer be able to work or provide services, but that depends if you signed a contract and stated you would not have any contact with the accounts.  My first suggestion, write a last demand letter and outline that you will file small claims court proceedings and send a copy of that to their accounts. 

Good luck. 

The letter stated they will ALWAYS need MTs to do transcription, VR can't do everything.  They also stated that the are evaluating the line rates for when we are on full VR accounts.  Honestly, do you expect to make the same to sit and read through these reports and make a few changes and send on their way as you do to type the whole thing?  I've seen a few VR jobs personally and the software doesn't miss much, so we should be able to pump these jobs out like crazy so a difference in like rate for editing is going to be offset by the fact that we can edit more jobs in a day than we can transcribe.  Industry is going this way and we all have to quit complaining or move on, this isn't new news has been happening over the years with all the bigger companies.

http://www.ajc.com/search/content/business/stories/2008/05/25/ga100transcend.html

If they delete this link, email me; I have the article saved.

Granted maybe "many" people can make more while editing, but you explained it quite well in your post about the money you earned straight transcribing to the money you make editing.  I'm left wondering if you are new to the field of medical transcription.  There was a time (a year ago) when I could make $22 an hour straight transcribing.  Even on a bad day with lots of interruptions and a queue full of difficult ESLs I was averaging $18 an hour.  Until VR came along. After a year of working on VR, my earnings then dropped from $22 to $9 an hour, and finally averaged at $14 an hour with VR.  That isn't even mentioning the quality of the reports and what we were told to overlook and let go through so that we weren't "over-editing".   I also know that I am not the only one this has happened to. While the money you may make pays YOUR bills a lot faster, it isn't the same for everyone, and that's what we've been saying.

You're also not thinking through your comment about the copier and the PC.  Although we no longer have to do carbon copies manually anymore when the copier came along, WE still made the copies.  The same with the PC.  We may not have had to use the Selectric typewriter anymore, but WE still had to enter the data and text into the PC and produce a professional document from scratch.  WE are not doing that with the VR.  If you want to use an illustration, at least use one that is more accurate.  The more accurate picture is to have the invention of a copier that did absolutely everything and a PC that needed no data entry.  The only manual job left in that office is the cleaning lady.   THAT's how the field has changed.  So why wouldn't some be upset to go from a medical Transcriptionist that took years and years of developing skill and educating to cleaning up after a machine?  After all these years of college, on-the-job training, and continuing education why should I feel happy in my job as a "cleaning lady" at half my wages to the copier that does everything and the PC that can run the office itself?  Just to make those with fewer skills and less experience happy because THEY don't have to work as hard and they're happy being the "cleaning ladies"? 

It's funny you should mention "not fussing" over using expanders.  Even the entries that go into the expanders were created by us, manually programmed by us, and implemented by us.  Someone may have invented the software, but all the data in it for future use was developed by US.  Do you know how long it takes to develop, maintain, and remember tens of thousands of shortcut entries?  It doesn't happen overnight.  So while we may use the expander that doesn't actually "type" each and every entry we now use, we DID type those and did a whole lot more into our expander software.  Furthermore, carpenters use electric nailers now.  Painters use electric air-painters now.  They still get paid the same amount for their work.  Why are we any different?  You use the expanders as a means to bolster your opinion, but just as in the big picture of VR, you haven't quite thought things through to completion.  I have more pride in my profession and my skills to be relegated "cleaning lady" with a false title of editor.  Truthfully if you look at the big picture, if not for VR you wouldn't even have the qualifications of Editor if you're only making $12 an hour straight typing.  THAT's why so many people are upset about what you feel is the future of this profession.  It isn't the technology, it's the fact that those relatively new to the field and lacking the skills will be turning out unprofessional, sloppy, and often incorrect medical documents that will effect EVERY medical transcriptionist and the field as a whole and thinking they've won the jackpot because they're making $13.50 an hour. There was a time when a minimum of 5 years' in-house experience was required to be considered for at-home medical transcription.  Now apparently all it takes is a willingness to be a "cleaning lady".

Just because someone posts that VR is the wave of the future doesn't mean they're in management - they're just being realistic about what is happening in this industry (just as they referred to the copier and PCs).  

Of course if you think it's really going to hurt you to do VR then perhaps you should go back to an IBM typewriter and get your own accounts.  After all - using a PC and expanders is helping you get paid for work you're not actually transcribing (yup, think about those expanders - I bet you're not fussing over getting paid to have those kick in instead of having to type out those words, or consider the header information that blows in for you from an ADT feed that you're not having to manually type). 

Thanks.